Weathering the storm

Golf courses are often seen as tranquil oases, offering a respite from the hustle and bustle of everyday life. But Mother Nature can be unforgiving, subjecting golf courses to a range of severe weather events that can cause considerable damage and disruption.

As severe weather events become more frequent, golf course businesses face greater risks if caught unprepared. In fact, according to the National Oceanic and Atmospheric Administration, severe weather events exceeding $1 billion in damages have more than doubled the last three years.

To help golf course owners and operators better prepare for severe weather risks, I’ve compiled a handful of emergency preparedness and risk management best practices.

Assess your specific risks

What draws people to your business is your property and its amenities. The severe weather risks it faces depends on your location. For example, courses in tornado-prone areas may need to prioritize building reinforcements and having a safe room for your guests and staff in case of a direct hit. Courses in flood-prone areas may need to ensure proper drainage and landscaping to prevent water damage.

To assess your risks, conduct a thorough risk assessment. This involves identifying potential hazards, assessing their likelihood and impact, and developing a plan to mitigate or manage them.

An underwriter like me can help you develop an emergency plan that’s tailored to your needs. The organization I work for, in fact, operates a world-class golf course, SentryWorld, which recently hosted the 43rd U.S. Senior Open. This gives me an up-close look at the daily risks that golf course operators like you face — and how best to prepare for them.

This includes identifying critical areas that need protection or fortification, such as unique ornamental trees, landmarks and structural amenities.

Develop an emergency plan

While it’s your property that draws people to your business, it’s those guests that keep you in business. To limit your business’ liability and to show your guests that you’ve helped provide the proper safeguards, have a comprehensive emergency plan ready to execute at a moment’s notice. This plan should outline roles and responsibilities, communication procedures and evacuation routes.

And, of course, a list of emergency contacts and establishing those protocols for communicating with staff, golfers and the public.

You can stay up to speed on weather forecasts and warnings with real-time weather data and collaborate with local emergency management agencies and other stakeholders to establish a community-wide response plan and enhance your resilience to severe weather events.

Maintain your infrastructure and equipment

To help your business withstand severe weather, your course operators must regularly inspect and maintain infrastructure and equipment. This may include ensuring proper drainage, securing loose items and installing lightning protection systems. And inspecting the health of trees and other vegetation, clearing out debris from drainage systems, and reinforcing roofs and buildings.

Reassess your property valuations

Because it’s impossible to eliminate all risks associated with severe weather, there are other proactive measures you can take to mitigate their impact. This includes obtaining the right insurance coverage, and enough of it. With inflation a constant consideration, it’s possible your property is underinsured.

Like in any industry, materials and labor cost more today than pre-pandemic. That means it could cost more to restore your property, rebuild facilities, and replace equipment if severe weather causes more damage than you’re insured for. Talk with your insurer about your valuations, and consider adding an inflation guard provision, which automatically increases the value of your insured property — at a percentage you set — to compensate for rising costs throughout the duration of your policy.

Maintain a business continuity plan

If severe weather does damage your course and facilities, and disrupts your operation, a business continuity plan can help protect your employees’ livelihoods and aid in your course’s recovery.

If a business is unable to cover months of expenses while it recovers, it may never re-open. In fact, historically, 25 percent of businesses don’t recover following a disaster, according to FEMA. If you suffer damage that leaves your course — and those you employ — vulnerable, business income insurance can help ensure you’re not one of them.

It does so by helping you pay for overhead and employee wages while you rebuild. It can also cover lost profits.

Prepare for the unexpected

While severe weather poses a significant threat to your golf course, there are steps you can take to help protect it. By conducting a risk assessment, developing an emergency plan, and taking proactive risk management measures, golf course owners and operators like you can minimize the impact of severe weather and ensure you remain in business for years to come.

Have a conversation with your insurer and local experts to develop a plan specific to your business and use these tips as a guide.

Brett Hoopingarner is the director of underwriting for Sentry Insurance. Sentry provides property, casualty, life insurance, and retirement products to the golf course industry.