Insurance Against Scoring A Hole In One

July 26, 2014 in Daily Bulletin

Insurance is typically bought to protect against catastrophes such as a natural disaster or the loss of the primary breadwinner in the family. Alex Mayyasi wrote about an instance where individuals purchase insurance in case of good fortune:

  • Golfers around the world are increasingly buying insurance policies that will pay out if the buyer scores a hole in one.
  • Players get insurance because traditionally the scorer of a hole in one has to buy everyone drinks, and this can be an expensive proposition.
  • Premiums can be as little as $3, and can cover several hundred dollars’ worth of drinks for all in one celebration parties.
  • Golf clubs might also purchase the insurance then offer a special prize for any member who scores a hole in one. If some lucky player makes it, the insurance company has to pay, not the club.
  • The practice of buying drinks after scoring a hole in one might have been started by clubs hoping to discourage members from making false claims about their playing prowess – many clubs will offer gold plaques to scorers of hole in ones.
  • Clubs also, of course, have the incentive of encouraging players to splurge on their drinks.

Read more about the practice, the countries where it’s most prevalent, the club that requires the buying of drinks as policy, and more over here.

Source: Priceonomics