Insurance broker and risk adviser Gallagher has developed a new parametric insurance solution aimed at helping golf courses mitigate financial disruption caused by flooding and severe weather.
The product has been created in collaboration with FloodFlash, a NormanMax company that specialises in sensor-based parametric flood cover.
Gallagher highlights that intense rainfall, storms, hurricanes and coastal surge events are increasingly affecting golf course operations, particularly for venues situated near rivers, lakes or coastal zones. The new arrangement is designed to provide a faster and more flexible form of financial protection against these risks.
The solution provides up to $10 million in flood cover per individual golf course, with policyholders able to set their own trigger water depths and corresponding payout levels. Gallagher explains that once floodwater reaches the agreed threshold, a pre-defined payment is issued. This payment can then be used to address a wide range of flood-related financial impacts. FloodFlash aims to assess and approve claims within 48 hours, with the overall claims process targeted to be completed within 28 days.
Funds from the payout can be used at the discretion of the policyholder and are not restricted by the type of damage incurred. Gallagher notes this may include physical impacts such as damage to greens, tees, vegetation and course infrastructure, as well as commercial losses from reduced visitor numbers or temporary closures. It can also extend to recovery costs including clean-up operations and repairs to club facilities and associated buildings.
As part of the solution, FloodFlash installs monitoring sensors at agreed locations across the golf course. These are positioned based on client requirements and are designed to record water levels with millimetre-level precision. Gallagher states that this technology supports quicker validation of flood events and speeds up claims settlement.
Gallagher’s specialist parametric insurance team will work with golf course operators to ensure the product integrates with existing insurance arrangements, providing additional protection alongside traditional policies where coverage gaps may exist, particularly for extreme weather events.
James Bosley, Head of Climate Strategy, Carbon Insurance & Parametric Solutions at Gallagher, commented: “Our new parametric golf course product provides clients with easy to access insurance to protect them from extreme weather which is a major problem for golf courses in certain geographies.
“Golf courses are often built nearby water features such as rivers, lakes or on the coast which makes then highly susceptible to flooding. Clearly the course itself is the most valuable asset for the business, as without it customers cannot use the facility, and whilst traditional insurance is readily available for the clubhouse and associated assets, cover for extreme weather damage to the course is less available and often excludes extreme weather events.
“The way this product is designed to pay out on pre-agreed parameters means golf course owners can be confident they are protected from the financial risks of flooding and closure.”
John Leckie, Chief Executive at FloodFlash, 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 gaps in coverage when it comes to flood; FloodFlash can fit alongside existing coverage to provide a solution tailored to the client that gives them reassurance in the event of a flood.”
