California Golf Course Insurance

Golf courses are a hub of activity, with golfers of all skill levels enjoying the sport, groundskeepers maintaining the course, and events held throughout the year. With so many moving parts, it's important for California golf course owners to have the right insurance coverages in place to protect their business from potential financial losses.

Location also often impacts business risks and insurance needs. For example, unlike courses in the midwest or northeast U.S., California boasts relatively temperate weather — which means California golf courses can be open year-round. This may remove risks like snow or ice damage (which may fall under the golf course’s property insurance), it increases the amount of foot traffic, customers and likelihood for a injury-related claim (whether a customer, covered under a general liability policy, or an employee, covered under a workers compensation policy).

Navigating AB5: Employer Obligations and Workers' Rights in California

As an employer, it’s also critical to follow employment laws and how they impact your obligations (including active insurance policies) to employees. AB5 is a law that was passed in California in 2019 to help protect workers who are not considered full-time employees. This included people who work in the gig economy, like Uber and Lyft drivers, and people who work for companies but are not considered employees, like some independent contractors.

The law says that these workers should be treated more like regular employees and get benefits like minimum wage, overtime pay, and workers' compensation insurance. This is important because it helps make sure that these workers are treated fairly and have some protections in case something bad happens while they are working.

However, there have been some changes to the law since it was first passed. In November 2020, California voters approved Proposition 22, which exempted app-based rideshare and delivery drivers from the AB5 requirements and classified them as independent contractors instead of employees. Additionally, in April 2021, a judge ruled that some truck drivers are exempt from AB5 as well.

Despite these changes, AB5 is still the law of the land for many workers in California, including those in the gig economy, and it continues to be a subject of debate and discussion among policymakers, business owners, and workers.

Coverages for California Golf Course Insurance

Golf course insurance is actually a bundle of several policies intended to protect the company's grounds, employees, equipment and bottom line. Below we cover the various insurance policies available for California golf courses and what they cover.

California Golf Course Liability Insurance

General liability insurance covers the golf course owner in the event of a lawsuit brought against them by a third party for bodily injury or property damage. This type of insurance covers incidents such as a golfer being injured by a stray golf ball or a guest slipping and falling on the course.

Without liability insurance, golf course owners could face significant financial losses in the event of a lawsuit. Liability insurance can cover legal fees, settlements or judgments, and medical expenses for the injured party.

California Golf Course Property Insurance

Property insurance is designed to protect the physical property of the golf course. This includes the clubhouse, carts, equipment and the course itself. California golf course property insurance can cover losses due to natural disasters such as wildfires, floods or severe weather, as well as theft or vandalism.

Without property insurance, golf course owners would be responsible for repairing or replacing damaged property out of their own pockets, which could be a significant financial burden. Property insurance can help golf course owners recover after a loss.

California Golf Course Workers' Compensation Insurance

Workers' compensation insurance is a type of insurance that covers employees who are injured on the job. This includes injuries from operating machinery, lifting heavy objects, or slipping and falling on the job.

Workers’ comp policies are priced based on employee payroll and the type of work employees do. Some golf course jobs are very physically demanding, involving heavy lifting or pulling and putting workers at higher risk for strains, sprains and repetitive stress injuries.

If you own a golf course in California and have employees working for you, it's important to know the workers' compensation insurance requirements in California because it’s one of the few insurance policies that’s required by law. Workers' compensation insurance is required by law in nearly all U.S. states, including California, and failure to have this coverage in place can result in hefty fines and penalties. This type of insurance covers medical expenses, lost wages and disability benefits for injured employees.

As an employer, you are required to carry workers' compensation insurance for all W-2 employees.

Large golf course companies: If your employees work in multiple states or temporarily work out-of-state, you may need to purchase additional coverage. While premiums for workers' compensation insurance are holding steady in California, the state has the highest rates in the country. This is because of higher medical, legal and administrative costs, and a high frequency of permanent disability claims.

If you have questions about work comp and who needs to be covered by the policy, California's Information and Assistance (I&A) Unit can help.

California Golf Course Business Owner's Policy (BOP)

A business owner's policy (BOP) is a package policy that combines general liability and property insurance into one policy. This can help California golf course owners save money on their insurance premiums while still maintaining comprehensive coverage.

A BOP typically includes general liability insurance, property insurance and business interruption insurance. This type of insurance can cover incidents such as slip and fall accidents, damage to the clubhouse, and lost income due to other unexpected events.

California Golf Course Umbrella Policy

An umbrella policy is designed to provide additional liability coverage beyond the limits of a primary insurance policy. This type of policy can be especially beneficial for California golf course owners who may be at a higher risk for liability claims due to the nature of their business.

Umbrella policies can provide additional coverage for bodily injury, property damage and personal injury claims. This type of policy can help golf courses protect their assets and avoid potentially devastating financial losses in the event of a lawsuit.