American Hole 'n One's Blog

In the dynamic world of tournament sponsorships, auto dealers face a common dilemma: the need for hole-in-one insurance. More than just a checkbox on a checklist, it’s a necessary move to safeguard your dealership from potential financial risks and seize opportunities to make a lasting impression on the green.  

In this article, we address some frequently asked questions surrounding hole-in-one insurance for auto dealerships, offering valuable insights to inform sponsorship strategies. 

1. What is Hole-in-One Insurance?

Hole-in-one insurance is a type of prize indemnity coverage that protects golf tournament organizers or sponsors from financial loss if a participant achieves a hole-in-one during the event. The insurance provider covers the cost of the prize awarded to the golfer who achieves the ace, which can range from cash prizes to vehicles. 

2. How Does Hole-in-One Insurance Coverage Work?

With American Hole ‘n One (“AHNO”), the process is simple. Once you're connected with one of our Golf Excitement Specialists, they'll guide you through a brief questionnaire, asking for details such as the number of participants, the yardage/distance of the shot on the prize hole, and the cash value of your prize(s). For dealers looking to insure a car, the auto dealership insurance programs will be based on the vehicle invoice value. With this information, we'll determine the coverage amount required. You will then receive your insurance policy to review and sign. From there, you can sit back and relax as we prepare your high-quality signage to promote your dealership on the course. 

If a golfer achieves a hole-in-one on the sponsored main prize hole during the tournament, the insurance provider will promptly start the claims process and payout the predetermined prize amount once the claim is approved. This coverage provides peace of mind for the dealership and the tournament organizer, ensuring they won't face unexpected expenses if a hole-in-one occurs. 

3. What Types of Prizes Can Hole-in-One Insurance Cover?

Hole-in-one insurance can cover a wide range of prizes, allowing auto dealerships to tailor their offerings to suit their budget and promotional goals. Common prizes include vehicles, cash awards, golf equipment, and luxury vacations. Additionally, cash awards can be utilized towards the lease or purchase of a vehicle, a choice that has gained popularity post-COVID. Some dealerships opt for unique prize packages that combine golf-related items with branded merchandise or exclusive experiences.  

American Hole ‘n One can insure just about anything, so it’s customized to your unique needs. Not only do we cover the main prize at your event, but we also offer the most Exclusive Bonus Prizes to place on the additional par 3 holes at no added expense. Some of our past Bonus Prize Partners include TaylorMade, Revo Sunglasses, and a variety of other amazing brands!  

4. Is Hole-in-One Insurance Expensive? 

The cost of hole-in-one insurance coverage varies depending on factors such as the prize value, the number of participants, and the distance to the main prize hole. Generally, premiums are affordable compared to the potential cost of providing a prize out of pocket. Plus, the added excitement and publicity generated by offering a significant prize can outweigh the cost of the insurance itself.  

Several factors may contribute to an increase in premiums for hole-in-one insurance. These include the involvement of professional golfers, if the event is a competitive amateur or professional event, or if a golfer plays the same hole over multiple days in an event. 

5. What Other Types of Event Coverage Should Auto Dealerships Consider? 

In addition to hole-in-one auto dealership insurance, auto dealers sponsoring golf tournaments may want to explore other types of event coverage to enhance their sponsorship package and generate more excitement. American Hole ‘n One can provide insurance for putting contests, million dollar shots, shootouts, closest to the pin, longest drive, and more.  

Putting contest coverage offers similar protection for prizes awarded to participants who make a successful putt from a designated distance. Million-dollar shots and shootouts can be held in various ways, including qualifying players through raffles or closest to the pin contests, with finalists competing for the grand prize. The Hole-In-One shootout typically takes place after the tournament, often on the 18th green, allowing spectators to witness the action. If any of the finalists make a hole-in-one, they win the grand prize. Closest to the pin and longest drive contests are also popular among golfers, adding an exciting challenge to the event and offering a guaranteed prize for the winner. 

6. How Can Auto Dealerships Maximize Brand Exposure at Golf Tournaments? 

Beyond prize coverage, auto dealerships can leverage golf tournaments as opportunities to maximize brand exposure and engagement. Setting up a booth at the main prize hole offers a prime opportunity to boost interaction with players as they approach the tee box.  Moreover, strategically positioning sponsorship signage throughout the course ensures visibility among both participants and spectators. With American Hole ‘n One, each hole-in-one package includes a complimentary sign package featuring signage for the main prize hole, along with additional bonus prize hole signs for other par 3 holes at the event, at no extra charge. Additionally, auto dealers will receive an arrow-shaped “Win This Vehicle” sign, golfer appreciation cards, and branded magnets to showcase on the car prize, amplifying exposure further. 

7. How do you handle claims if someone achieves a hole in one during the tournament? 

If someone lands a hole-in-one during the golf tournament on the main prize hole or the bonus prize hole, the tournament director or auto dealer should notify the claims department of American Hole ‘n One by submitting the form at www.hio.com/claims no later than the first business day after the event. In the event of a main prize winner, the claims department of American Hole ‘n One will provide a claim packet to the sponsor. 

8. How far in advance do you need to purchase the insurance before the tournament? 

AHNO must be contacted prior to tournament play in order to provide coverage. A minimum of 3 business days is required to receive a sign package without a rush shipping fee incurred.

9. What happens if adverse weather conditions affect the tournament? 

If the tournament is canceled due to weather conditions, we will refund the payment. If the tournament is postponed due to weather, please call 800.822.2257 before the event starts. 

10. Are there any exclusions or limitations we should be aware of? 

Minimum yardage for any main prize covered is 135 yards. Any hole with a bonus prize must be played from a minimum of 100 yards. Mulligans and/or practice shots will not be counted towards the receipt of a main or bonus prize. Only the first attempt will count towards the prize. 

11. What documentation is required to validate a hole-in-one claim?

Most hole-in-one insurance policies require specific verification to approve a claim. This typically includes a signed affidavit from a credible, non-playing witness, confirmation of the exact yardage, hole number, and par, and in some cases video evidence if available. These safeguards help prevent fraud and ensure the contest was run according to policy rules.

12. Can the policy cover multiple winners if more than one golfer makes a hole-in-one?

Some insurers allow coverage for multiple winners, while others only insure the first successful shot. If you expect a large number of participants, it’s important to verify whether your policy includes multi-winner protection.

13. How far in advance does hole-in-one insurance need to be purchased?

Many providers require the policy to be secured at least 2–3 business days before the event to allow time for processing and signage production. Rush orders may be possible but often include additional fees.

14. What are the typical odds of a golfer making a hole-in-one?

The odds vary significantly by skill level. For an amateur golfer, the odds are roughly 1 in 12,000; for a professional, around 1 in 3,000. This wide gap helps organizers understand why premiums are relatively low compared to the prize value being offered.

15. What common mistakes can invalidate a hole-in-one insurance claim?

Common issues include using incorrect yardage, allowing mulligans, not having the required witnesses present, failing to follow the official rules of play, or modifying the contest setup without notifying the insurer. Ensuring all rules are followed precisely reduces the risk of claim denial.

16. If no one wins, can the prize value roll over to a future event?

Some insurers allow prize roll-overs for recurring tournaments or annual promotions, while others require a new policy for each event. If roll-over opportunities matter for your marketing plan, clarify this when obtaining your quote.

17. Does hole-in-one insurance include general liability coverage for the event?

No. Hole-in-one insurance only covers the prize payout if a golfer makes a hole-in-one. It does not cover injuries, property damage, or incidents involving spectators or players. Event organizers may need separate liability insurance depending on the size and nature of the tournament.

18. Do I need witnesses if the contest is filmed or livestreamed?

Video is helpful, but does not replace the requirement for qualified witnesses unless stated in your policy. Insurance providers generally require at least one or two non-playing witnesses for higher-value prizes.

19. Can dealership employees participate in the hole-in-one contest?

This depends on the policy. Some insurers allow employees to participate, while others exclude anyone affiliated with the event sponsor. Check your policy to ensure all participants are eligible.

20. Can the contest be held on a temporary or non-traditional golf hole?

Many insurers require the contest to be held on a regulation golf course with verifiable yardage and proper hole placement. Temporary holes or makeshift setups may not qualify. Always confirm eligibility before promoting the contest.

How American Hole ‘n One Can Help 

Hole-in-one insurance offers auto dealerships a valuable opportunity to enhance their golf tournament sponsorships while mitigating financial risk. By understanding the basics of hole-in-one insurance coverage and exploring complementary options such as event signage and golf prize packages, dealerships can create memorable experiences for participants while increasing brand visibility. With the right insurance coverage in place, sponsoring a golf tournament can be a hole-in-one success for auto dealers.  

Whether you are a seasoned golf tournament sponsor or a newbie, American Hole ‘n One has you covered for all your golf tournament needs, from on-course signage to hole-in-one insurance. For more information and assistance in planning your next event, contact us today!   

About American Hole ‘n One  

Founded in 1986, American Hole ‘n One (AHNO) revolutionized the golf promotions industry. Since the beginning, AHNO has been dedicated to serving each and every client with complete commitment to their promotion needs. As the company began to grow, our division Grand Prize Promotions (GPP) emerged to provide promotions for sporting events that could meet any business’ needs. Our 15,000 square foot, in-house print shop, offers the highest quality signage to our esteemed clientele. Located in historic downtown Buford, GA, AHNO has grown into the world’s largest hole in one insurance provider and event promotions company. Insured by A+ XV rated Everest National Insurance Company, American Hole ‘n One is dedicated to assisting clients in accomplishing their goals and making sure every event is a success!