Insurance broker and risk adviser Gallagher has collaborated with FloodFlash, a NormanMax company, to launch a new parametric insurance solution designed to protect golf courses from mitigate financial disruption caused by flooding and severe weather.
Intense rainfall as well as extreme weather events such as hurricanes and coastal surge events can cause flooding and pose significant challenges for golf courses, especially for venues located near rivers, lakes or coastal zones
In light of this, the new parametric insurance solution being introduced by Gallagher and FloodFlash aims to offer a more rapid and adaptable means of financial protection against these risks.
As per Gallagher, the product provides up to $10 million of flood coverage per golf course and enables clients to customise trigger depths and payout amounts.
“If water reaches a pre-agreed depth, the coverage will pay out the pre-agreed payout, which can be used to cover any losses related to the flood. It is designed for rapid claim approval and payout; FloodFlash aims to approve claims within 48 hours and aims for the whole claims process to be completed within 28 days,” Gallagher notes.
The firm also explained that the payout can be used for any financial losses related to the flood event, irrespective of the nature of the loss or damage.
Gallagher explained that this includes any form of physical damage to the golf course itself, including tees, greens, shrubs, and structures; economic losses, including loss of footfall. It can also extend to recovery costs including clean-up operations and repairs to club facilities and any other associated buildings.
As part of the solution, FloodFlash will install sensors at points around the course predesignated by the client. These are designed to record water levels with millimetre-level precision. Gallagher notes that this technology will support quicker validation of flood events, enabling claim approval within 48 hours for most scenarios.
Gallagher’s specialist parametric team will reportedly work with clients in order to ensure that the product provides comprehensive cover complimenting any traditional insurance golf course owners may have in place and provide essential additional cover for natural catastrophes and 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.”
Adding: “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, CEO at FloodFlash, said: “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.”
