Insurance broker and risk consultant Gallagher has developed a new parametric insurance solution designed to help golf courses mitigate the financial disruption caused by flooding and severe weather.
The product was created in partnership with FloodFlash, a NormanMax company that specializes in sensor-based parametric flood coverage.
Gallagher stressed that heavy rainfall, storms, hurricanes and coastal tidal events are increasingly impacting golf course operations, particularly those located near rivers, lakes or coastal areas. The new arrangements are designed to provide a faster, more flexible form of financial protection against these risks.
The solution provides up to $10 million in flood insurance per golf course, with policyholders able to set their own trigger water depths and corresponding payout levels. Gallagher explained that pre-determined payments would be issued once flooding reaches an agreed-upon threshold. This payment can be used to address a variety of financial impacts related to flooding. FloodFlash aims to evaluate and approve claims within 48 hours, with the entire claims process aiming to be completed within 28 days.
Benefit funds may be used at the policyholder’s discretion and are not subject to restrictions on the type of damage caused. Gallagher noted this could include physical impacts such as damage to greens, tee boxes, vegetation and course infrastructure, as well as business losses from reduced visitor numbers or temporary closures. It can also extend to restoration costs, including cleanup operations and repairs to club facilities and associated buildings.
As part of the solution, FloodFlash installed surveillance sensors at agreed locations on the golf course. Positioned according to customer requirements, these units are designed to record water levels with millimeter accuracy. Gallagher said the technology enables faster verification of flood events and faster settlement of claims.
Gallagher’s specialist parametric insurance team will work with golf course operators to ensure the product integrates with existing insurance arrangements to provide additional protection where there may be a coverage gap in traditional policies, particularly in relation to extreme weather events.
James Bosley, head of climate strategy, carbon insurance and parametric solutions at Gallagher, commented: “Our new parametric golf course product provides customers with easily accessible insurance to protect them from extreme weather, which is a major issue for golf courses in some regions.
“Golf courses are often built near water features such as rivers, lakes, or on the coast, making them highly susceptible to flooding. Clearly, the course itself is the most valuable asset to a business because without the golf course, customers cannot use the facility. While traditional insurance is readily available for clubhouses and related assets, coverage for extreme weather damage to courses is less common and often does not cover extreme weather events.
“The product is designed in a way that payments are based on pre-agreed parameters, meaning golf course owners can be confident they are protected from the financial risks of flooding and closure.”
FloodFlash CEO John Leckie added: “We are delighted to launch this joint initiative with Gallagher, combining our unique sensor-based approach with Gallagher’s parametric expertise. Golf courses often face coverage gaps in the event of flooding; FloodFlash can be combined with existing coverage to provide customers with a tailor-made solution, giving them peace of mind in the event of flooding.”
