Outings And Contests

• Hole-in-one insurance is typically purchased by golf courses or golf driving ranges looking to host a contest or promotion. It can also be purchased by tournament or outing organizers seeking extra excitement on the course during their event. Large, golf-specific insurance companies will take the risk of paying out a large sum of money or a new vehicle for an up-front fee. However, several guidelines dictate the process.
  
  

Terms And Conditions

• Most hole-in-one insurance companies start with one player, one shot packages for around $200 -- as of Jan. 11, 2011 -- and progressively move up from there. This simple package would be ideal for a golf course seeking a once-in-a-lifetime hole in one contest. Other insured packages are for five shots, 10 shots and 20 shots at a single target. There are also options for group outings, that are all playing the same hole during an outing, to have a shot at the prize as they come through.
  
  

Rules And Guidelines

• Most hole-in-one insurance companies will only insure shots from longer than 165 yards. The cost of insurance drops the farther away the target is, typically in increments of 15 yards. Contests from 180 and 195 yards will command less money up front. There need to be at least two verifiable witnesses of the hole in one, and one must be a PGA Professional. Also, many companies require the entire event to be videotaped, and the winning shot must be shown on camera from behind the green.
  
  

Big Payouts

• Hole-in-one insurance companies offer a variety of prizes. Most large cash sums are payable in 30-year or 40-year annuities. Golf courses and outings usually purchase hole in one insurance with a grand prize of $1 million. Other options available are less expensive and less rewarding. A grand prize of $250,000 or even $100,000, payable in a lengthy annuity, might not excite golfers as much as the million dollar shootout.