What would happen if a hurricane forced your course to close during peak season—but didn’t damage a single building?
Would your insurance still cover your lost revenue, or would you be left holding the bag?
If you’re a golf course owner in Georgia, there’s a critical insurance gap hiding in your policy—one that could drain your finances long before the floodwaters recede. This article will reveal the surprising legal and historical roots of that gap, the real-world disaster that exposed it, and the emerging solutions that could save your business.
Here’s what you’ll learn:
- Why most business interruption policies don’t cover your actual golf course.
- The lawsuit that made this issue painfully real.
- How parametric insurance can close the coverage gap.
- A step-by-step guide to protect your course before the next storm hits.
The Origins of a Broken System: Business Interruption Insurance Wasn’t Built for the Outdoors
Business interruption insurance wasn’t designed with sprawling landscapes in mind. Its roots stretch back to the 18th century, when factories insured profits lost due to fires. The logic: if your building burned down, you’d be reimbursed for lost income. But the policy only kicked in if there was damage to a covered structure .
Fast-forward to the present: That structure-first logic still governs most BI policies today. That’s a problem for golf courses, where revenue flows from acres of greens and fairways—not from the clubhouse. Many policies define covered property narrowly, often excluding “land” or “lawns,” which effectively omits the course itself.
The result? A storm can shut down your course without triggering your insurance—because the land, not a building, was damaged.
When Precedent Strikes: The Case That Should Scare Every Golf Course Owner
Consider Ormond Country Club v. James River Insurance. After Hurricane Katrina, Ormond’s course was devastated. Yet the court sided with the insurer’s denial of a $200,000 BI claim because the course wasn’t named on the declarations page—and “land” was specifically excluded .
That ruling set a dangerous precedent. If your policy doesn’t explicitly list the course itself—including greens, fairways, and tee boxes—as covered property, you could be exposed to massive financial loss during weather closures.
In Georgia, this risk isn’t theoretical:
- The state saw 134 billion-dollar weather disasters between 1980 and 2024.
- That number jumped from 3 to nearly 10 major events annually in the past five years .
- Spring—prime golf season—also marks peak tornado activity, with damaging winds hitting nearly 20 days per year .
Your course doesn’t need to be destroyed. It just needs to be unplayable—and without the right coverage, your claim could still be denied.
A New Way Forward: Parametric Insurance Is the Coverage You Didn’t Know You Needed
Traditional insurance is reactive, slow, and based on physical damage. Parametric insurance flips the script.
Instead of reimbursing specific damages, it pays out a pre-agreed sum when a defined event—like a hurricane within 50 miles or a tornado warning—is triggered. No adjusters. No delay. No ambiguity.
Why it’s a game-changer for golf courses:
- Speed: Payouts happen in days, not months.
- Clarity: Triggers are objective—no debating over definitions.
- Broader protection: Covers closures from weather threats, even when no buildings are harmed.
Offered by leading firms like Swiss Re and Munich Re, parametric policies start at as little as 3.5% of the insured amount . It’s not a replacement for your core insurance—but it’s a critical second layer that catches what traditional BI leaves behind.
What You Need to Do Now: A Tactical Playbook for Georgia Golf Course Owners
Step 1: Conduct a Forensic Policy Review
- Locate your Declarations page. Are your greens, fairways, and tee boxes explicitly named as “Covered Property”?
- Check for exclusions around “land” or “lawns”. These are red flags that could void your coverage.
Step 2: Interrogate Your Broker
Use this checklist during your next call:
- Can you show me exactly where our course is covered?
- Are there exclusions that could negate our claim?
- What’s the trigger for our BI coverage—does it require structural damage?
- If we shut down due to flooding or debris, will the policy respond?
- Can you quote parametric options?
Step 3: Add a Parametric Policy
Think of it as your financial backup generator. Whether it’s a named storm or a surprise tornado, parametric coverage ensures cash keeps flowing—even when your fairways are underwater.
Resilience Through Layering: The Future of Golf Course Insurance
A one-size-fits-all policy is no longer enough. Golf courses need a hybrid insurance model that reflects today’s risk landscape:
- Fortified Traditional Policy: Reviewed, revised, and includes the course as covered property.
- Parametric Shield: Fast-acting coverage for non-physical, weather-driven disruptions.
- Event-Specific Coverage: For courses hosting tournaments, event cancellation policies are a must.
This layered approach isn’t just smarter—it’s essential. It protects against both obvious and overlooked risks, providing the cash flow and confidence needed to bounce back quickly.
Don’t Wait for the Wind to Blow the Truth Your Way
You don’t want to learn the hard way that your insurance doesn’t cover your course. Georgia’s golf industry contributes over $5.3 billion to the state economy. But without clear, comprehensive coverage, that financial engine is vulnerable every time storm clouds gather.
You now have the knowledge. Your next step is action:
- Review your current policy.
- Challenge your broker.
- Quote a parametric policy.
Because the next storm isn’t a matter of if. It’s a matter of when. And when it comes, you’ll either have a check—or a crisis.
