Do you assume your golf course is financially protected if disaster strikes?
What if your business interruption insurance—despite years of premium payments—leaves you with nothing when you need it most?
In this article, you’ll discover the overlooked risks that threaten Georgia golf courses, even when insured. You’ll learn the truth behind “silent exclusions,” outdated coverage standards, and why most golf courses are dangerously underinsured.
We’ll cover:
- The hidden exclusions that void coverage—even when disaster hits
- Legal cases that expose costly gaps in traditional insurance
- Why climate change is rewriting your risk profile
- Better coverage options designed specifically for golf courses
McConnell Golf’s Million-Dollar Mistake: When “Comprehensive” Means Nothing
In September 2024, Hurricane Helene devastated the Southeast, but for McConnell Golf, the real storm came after. Despite paying nearly $900,000 in premiums, their insurer, Cincinnati Insurance, offered just $108,494 for $3.1 million in verified damages—a staggering 96% shortfall.
This isn’t a fluke. It’s a symptom of a broader crisis where standard business interruption policies fail golf courses when they’re needed most.
The hidden danger? Most policies contain silent exclusions that course owners don’t know about—until it’s too late.
The $200,000 Oversight: When Your Course Isn’t Even Covered
In Ormond Country Club v. James River Insurance Co., the court denied a $200,000 claim—not because the damage wasn’t real, but because the golf course itself wasn’t listed in the policy.
The policy covered structures like the clubhouse and shelters but excluded “land or lawns.” For many courses, this means the most valuable asset—the course itself—is left completely unprotected.
Don’t assume “golf course insurance” actually covers your golf course. If it’s not explicitly listed in your declarations, it might as well not exist on paper.
“Direct Physical Loss”: The Loophole That Silences Claims
Most business interruption policies hinge on a single clause: “direct physical loss or damage.” But what qualifies?
If a storm forces evacuation or makes the course unsafe—without damaging structures—insurers can deny your claim.
Examples:
- Weather shutdowns like Augusta National’s thunderstorm closure in 2025
- Air quality warnings from wildfire smoke
- Flooding that renders fairways unplayable but leaves buildings untouched
In each case, you lose revenue but get no coverage.
This clause also devastated clubs during COVID-19. Courts, including in the Wakonda Club case, ruled that “loss of use” wasn’t enough—actual, physical damage was required.
The 72-Hour Waiting Period: A Sneaky Way to Deny Your Payout
Buried deep in your policy may be a 72-hour “waiting period”—a time deductible that delays when your coverage kicks in.
For golf courses, this is disastrous. Most income is concentrated around peak times like weekend tournaments or holiday events. If your course is shut down Friday to Sunday, that’s tens of thousands in lost revenue—with no compensation.
Even worse, if partial operations resume within 72 hours, insurers may claim the event doesn’t qualify at all.
Business Interruption by Another Name: The $1 Billion No-Show Crisis
Missed tee times might not seem like a catastrophe—until you realize they cost the industry $1 billion per year.
A 9% no-show rate equals $142,500 in lost revenue annually per course. Business interruption events replicate this impact—but over a single weekend or storm closure. Every empty tee time is money you’ll never get back.
And since 89% of abandoned rounds occur when conditions are still playable, when actual closures happen, the financial blow is immediate and immense.
The Environmental Time Bomb in Your Policy
Think your general liability policy covers everything? Think again. Most contain absolute pollution exclusions—meaning any contamination event could become a financial nightmare.
Georgia’s climate adds fuel to the fire:
- Heavy rainfall accelerates chemical runoff
- Leaking fuel tanks can trigger $220,000+ cleanup bills
- Groundwater contamination lawsuits can exceed $1.5 million
The worst part? These claims often arise years later, long after you thought the issue was resolved.
Parametric Insurance: A Game-Changer for Flood Protection
In 2024, Amwins and Floodbase launched parametric flood insurance tailored for golf courses. Unlike traditional insurance, this coverage pays automatically when satellite data shows flooding—no adjusters, no delays.
Take Buenaventura Golf Course: closed for over two years due to flooding, with $10 million in losses. Traditional insurance fell flat. Parametric coverage could’ve delivered a timely payout with fewer hoops to jump through.
Climate Change: The Insurance Market’s Ticking Clock
Climate change has driven $600 billion in weather-related insurance losses over two decades—and insurers are taking notice.
Hurricane Helene’s 2024 damage showed how storms are becoming more intense and frequent. As a result:
- Premiums are increasing 20–50% annually
- Flood and wildfire exclusions are spreading
- Some insurers are leaving high-risk regions entirely
Golf courses are being priced out—or left out—of traditional coverage.
The Claims Process: Designed to Wear You Down
Even when you have “good” coverage, the claims process can kill your recovery. Adjusters with no golf course knowledge routinely undervalue damage, especially to specialized assets like greens or irrigation systems.
McConnell Golf’s lawsuit shows the pitfalls:
- $3.1 million in damages
- Only $108,494 offered
- Delays, disputes, and uncertainty followed
Coverage means little if the process denies or devalues your claim.
What Smart Course Owners Are Doing Instead
Forward-thinking Georgia golf courses are moving beyond standard policies. They’re creating hybrid plans with:
- Tee-to-Green specialized coverage
- Parametric flood insurance
- Environmental liability protection
- Custom business interruption triggers
The key is understanding: you’re not a generic commercial property. You’re a golf course with seasonal revenue, vulnerable terrain, and high fixed costs.
Conclusion: Don’t Let Coverage Be Your Blind Spot
At the end of the day, it’s not the hurricane or wildfire that puts your course at risk—it’s the assumption that your insurance will cover it.
You’ve now seen how standard policies often exclude exactly what you need. Whether it’s buried exclusions, impossible claims standards, or rising premiums, the insurance system isn’t built for golf courses like yours.
Now that you know what to watch out for—and what alternatives are emerging—it’s time to take the next step: review your current policy and explore golf-specific insurance solutions.
Your course’s future might just depend on it.
