There are a number of times it makes sense to throw a golf tournament. Sometimes, it’s simply because you’re in charge of the course and want to bring some exposure to it. Other times, it may be to raise money for it. Often, philanthropies throw golf tournaments because they know it stands a good chance of getting people to attend. To that end, many golf tournaments feature a special prize for sinking a hole in one on a particular hole. While this is a good idea, it’s a much better one when hole in one insurance has been secured.

At face value, offering a prize for sinking a hole in one may seem like a no brainer. The chances are so low, after all, that you probably won’t have to pay out no matter how often you offer it.

However, this perspective tends to miss a few things. First, you don’t offer a hole in one prize on a par five. Unless you’re giving it out on a par three, no one is going to even bother trying, much less being attracted by the offer.

Second, the prize needs to be sufficient to attract a crowd. In fact, if your advertisement mentions $100 to whoever can ace a certain hole, your course and/or foundation may look cheap, unprofessional, clueless or a combination of the three. Your prize, therefore, needs to be substantial. We’re talking thousands of dollars or even a car. Obviously, you need to consider your crowd. Depending on the type of money the average player makes, you may need a prize of even greater value.

In any case, it’s essential you get hole in one insurance for your tournament. Otherwise, you risk someone actually acing a hole and collecting. Can your foundation withstand that kind of development? Usually, that would be enough to make the tournament counterproductive.

To get a quote for this insurance, generally all you need to do is tell a company that offers it:

• The value of the prize you’re offering
• The number of people participating in the event
• The yardage from the tee box to the hole

That’s all it takes to throw a better, more successful event because you could offer a hole in one prize without worrying about losing your shirt.