Category: Recreation and Sports

7999 Amusement and Recreation Services NEC

NAICS CODE: 713910 Golf Courses and Country Clubs

713990 All Other Amusement and Recreation Industries

Suggested ISO General Liability Codes: 11138, 44069, 44070, 44071, 44072

Suggested Workers Compensation Codes: 9016, 9060

Description of Operations:

Golf courses vary in size and complexity, and may be municipally or privately owned and operated. They can be 18 hole, 9 hole, 3 par, miniature golf and/or a driving range. Longer courses will offer rental carts. Some have snack bars or retail shops, or offer lessons or repair services. Some sponsor tournaments on premises.

  • Property exposure may be very minimal if limited to a clubhouse facility and maintenance shed. If there is a restaurant, pro shop or repair facility, exposures will increase. The distance from public fire protection and fire services is important as many golf courses are located in rural areas. Wiring should be up to date and adequate for the operation. Chemical applications such as insecticide, pesticide, or herbicides used to maintain the grounds may be flammable and should be stored separately from other operations. Machinery and equipment can catch on fire if not properly maintained. If there is a pro shop, theft can be an additional concern. Golf carts can be electrically powered or gasoline powered. If gasoline is used, the fuelling operation needs to be separate from other facilities. If carts are electrically powered, they can release flammable hydrogen gas while being recharged. The charging room must be well ventilated. The premises should be protected against unauthorized access after-hours. Business income and extra expense will be limited unless significant activities take place indoors.

  • Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees handling money. An inventory monitoring program should be in place to make sure items are not slipping out the back door. All ordering, billing and reimbursement responsibilities should be separated and records should be reconciled on a regular basis. Annual external audits should be conducted.

  • Inland marine exposure is from accounts receivable, computers, contractor’s equipment, and valuable papers and records. Bailees exposure results from the handling of customers’ goods, such as those left for service, repair, or while visiting the facility and property left in locker rooms. Golf carts coverage should be considered. Contractors’ equipment is used to maintain both buildings and the yards.

  • Occupiers’ Liability exposures are significant due to the number of visitors to the premises. Public safety is a major concern as visitors can be injured by slips, falls, and flying golf balls. Golf carts can overturn or collide with stationary objects. Many courses require customers to sign hold harmless agreements before using the facilities or renting a golf cart. If lessons are offered to children, it is important to conduct background checks on instructors. A driving range should be physically separated from the rest of the facility, with barriers to prevent the balls from flying into roadways and neighbouring houses. If tournaments are conducted on premises, additional security may be needed to control crowds. Private golf clubs may have personal injury exposures from discrimination, defamation of character, false arrest, or unlawful detention.

  • Products liability exposure is from the cooking and eating facilities. The pro shop may sell golf equipment and provide repair services.

  • Environmental impairment exposure is due to the use of herbicides and pesticides to maintain the grounds. All individuals who apply chemicals must be appropriately licensed and the product must be used according to directions. Chemicals may leach into surrounding areas, affecting the air, land or groundwater. Batteries from golf carts must be disposed of properly.

  • Automobile liability exposure is generally limited to hired and Non-owned for employees running errands. If there is any valet service, limo, transport, pickup, or delivery services, MVRs must be ordered on all drivers. Any owned vehicles must be maintained on a regular basis with all service documented.

  • Workers compensation exposure can be high. If the golf course does its own grounds maintenance and chemical applications, workers can incur cuts, burns, contact dermatitis, or respiratory ailments. Pros and instructors, caddies, and others that may be involved in related positions will have potential for slips, falls, strains, sprains, and being hit by errant golf balls or equipment.

Minimum recommended Insurance coverage for golf course:

Building, Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Contractors’ Equipment, Golf Carts, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-owned Auto, Workers Compensation.

Other Insurance coverage to consider for golf course:

Business Income and Extra Expense, Mobile Equipment, Liquor Liability, Employment Practices Liability