Risk Management Information

Risk Management Information

Golf Courses

Business Links

Golf Courses

Report Number: / BL-20-28
Release Date: / April 27, 2006
Section Title: / Services

NAICS713910

SIC 7992; SIC 7997

ISO 44070

NCCI 9060

Exposure Abstract

Lines of Insurance / Areas of Concern / Risk* / Section
Commercial Automobile / Maintenance operations; incidental vehicle use; valet parking; vehicle theft and vandalism / L / CA Assmt / CA Controls
Liability / Falls; errant golf balls; golf car accidents; tree hazards; lightning; clubhouse accidents; liquor liability; fertilizer and pesticide use / M / LB Assmt / LB Controls
Property - Crime / Employee dishonesty; burglary; theft; vandalism; fraud / L / CP Assmt / CP Controls
Property - Fire / Faulty electrical wiring; improper storage of flammable liquids, pesticides, and fertilizers; careless smoking / L / FP Assmt / FP Controls
Property - Inland Marine / Business Interruption / Business interruption; loss of or damage to accounts receivables, equipment, valuable papers and records, bailed property, and fine arts / M / IM Assmt / IM Controls
Workers’ Compensation / Lifting; machine and tool hazards; noise; hazardous substances; workplace violence; cooking operations / M / WC Assmt / WC Controls
*Risk: L-Low, M-Moderate, H-High

Description of Operations

Golf courses are outdoor recreational areas where the sport of golf is played.A round of golf consists of playing 18 holes and golf courses, as such, are typically designed with 18 holes. Smaller facilities, commonly called executive courses, may consist of 9 holes that are played twice to complete 18 holes. Large facilities may have multiple courses. Golf courses may be public, private, or semi-private, and may be stand-alone operations or affiliated with hotels, residential communities, country clubs, or other entities. This report will address the golf course and closely-related operations. It will not address hotels, residential communities, or other non-related operations.

Facility – The typical golf course facility will include the course itself, a club house, golf cart barns, and course maintenance facilities. There may also be ancillary structures throughout the course, such as weather shelters or snack bars. Courses may have driving ranges, putting greens, or other practice facilities. There will also be parking areas for players and staff.

An 18-hole golf course can range in size from less than 60 acres to over 100 acres. The course will consist of both playing area and scenic space separating the individual holes. The playing area of each hole consists of the tee ground, the putting green area, and the space connecting these two areas.The course may be designed to take advantage of the natural features of the terrain or the course may be artificially landscaped. In general, courses may be classified as links or woods courses depending upon the openness of the course. Courses will have both natural and man-made hazards, such as steep slopes and drop offs, rough terrain, sand traps, streams, and ponds. Most courses will have underground irrigation systems with integral standpipes and hose bibs or sprinklers to facilitate course watering. If golf carts are permitted on the course, there will be designated paths, which may be paved.Depending upon the availability of land, courses may cross public or private roads. Courses are natural settings and may be inhabited by a variety of wildlife. Some courses may be lighted to allow for nighttime play.

Clubhouses facilities may include a pro shop, where golf equipment and apparel is sold; restrooms; locker rooms and shower facilities; office areas; and food and beverage services, which may range from snack counters to full-service restaurants and bars.

Courses that rent golf carts will have storage, fueling/charging areas, and maintenance facilities for the vehicles.These facilities are typically covered to protect the carts from the weather. Fueling/charging equipment will vary depending upon whether the cart is powered by electricity, gaseous fuels, or liquid fuels. Maintenance facilities will include both wash areas, where the carts may be cleaned, and mechanical repair areas. In resort areas, courses may rent space for regular customers to store their own golf carts on the premises.

Outdoor power equipment used to maintain the course and facility will have a dedicated storage, fueling, and maintenance area. There will also be storage, mixing, and equipment loading areas for fertilizers, pesticides, and other chemicals applied to the course.

Courses that are not designed for golfers to return to the clubhouse area after nine holes may have on-course bathrooms, snack bars, or weather shelters. If the course hosts tournaments, there may be permanent grandstands or bleachers around designated holes; these structures may also be constructed on a temporary basis.

Golf practice facilities may include full length driving ranges, swing cages (e.g., mats and enclosed netting), practice greens, and practice hazards. These facilities may be used by golf course professionals to give lessons on a fee basis.

People – A variety of people work for golf course facilities. These range from golf course managers, golf teaching professionals, course superintendents, course maintenance personnel, course security, golf shop sales people, and bar or restaurant personnel. The golf course manager is responsible for the direction and supervision of all course activities and the personnel assigned to those activities. The course superintendent is responsible for maintenance of the course and adjacent landscaped areas, including buildings and structures.Maintenance workers may operate mowing equipment; water tees, greens, and fairways; spray chemicals; prune trees and shrubbery; repair and replace pipe on irrigation systems; maintain ball washers; and perform other maintenance activities. Most maintenance employees will spend large amounts of time working outdoors.Pro shops, food services, and other concessions may be contracted out to third parties.

Services – The primary services provided by golf courses is to provide golfers with access to the golf course and patrol the course to expedite play and enforce applicable course rules and regulations. The course may sponsor golf leagues or tournaments. Course professionals may also provide instruction to interested persons on an individualized or group basis.

Starting times may be arranged through the course starter. Most courses will allow golfers to reserve a starting time in advance of the day of play. At the designated starting time, the golfer will report to the starter, pay their fee, and be allowed on the course. The golfer will also arrange a golf cart or equipment, if needed.At the end of the round, golfers that have rented items will return them. They may shower and change in the club house, and dine or drink.

Equipment – Equipment found at golf courses includes golf carts, outdoor power equipment (e.g., lawn mowers, cultivators, and grading equipment), fertilizer and pesticide application equipment; hoses, sprinklers, and irrigation systems; golf carts; off-road utility vehicles; fuel tanks and dispensing equipment; power washers; air compressors; and other tools and maintenance equipment. There will also be kitchen and restaurant equipment, cash registers, computers, office equipment, counters, tables, chairs, and other related equipment. Facilities that have tournaments may have portable scoreboards, bleachers, grandstands, lighting, or sound systems.

Materials – The primary consumable materials at golf courses will be pro shop stock (e.g., golf clubs, balls, bags, and apparel), food, cleaning supplies, golf course chemicals, fuels, course tickets, and paper goods.

Additional Information - In addition to the references provided at the end of the report, the following are a list of useful information sources concerning golf course operators:

Golf Course Superintendents Association of America,

National Golf Course Owners Association,

National Golf Foundation,

U.S. Golf Association,

[Exposure Abstract]

Risk Management Information

Golf Courses

Commercial Automobile Exposure Assessment

[Commercial Automobile Exposure Controls]

Golf courses will have a limited commercial automobile exposure, although the exposure increases if multiple locations are being managed or valet parking is provided. However, even incidental vehicle operation exposes the business to loss. When employees are using their own vehicles to perform tasks, such as picking up supplies or going to the post office, management should be concerned about their driving skills, as this creates a non-owned vehicle exposure. The following areas should be reviewed to provide a comprehensive exposure assessment.

Management

Is a ‘safety policy’ in place addressing the safe operation of vehicles by drivers?

Are all passengers assured a proper seating position in a vehicle (i.e., not allowed to ride in the back of trucks that are not intended for passenger transportation)?

Is a policy in place requiring that all employees be secured in a seat belt when a vehicle is in motion?

Are drivers instructed to not use communications devices (e.g., cellular phones) when they are driving?

Is there a written policy addressing the consumption of alcohol and illegal substances by drivers?

If employees are allowed to use company-owned/leased vehicles for personal use, are limitations in place as to who may drive the vehicle and the radius of operation?

Operations

Are multiple locations being managed that may require employees to drive between locations for business purposes?

Are vehicles and trailers selected to meet the requirements of the business?

Is equipment properly secured on vehicles?

Do employees use their personal vehicles for business purposes?

Are drivers instructed to lock company vehicles, and activate the alarm system, if provided, when vehicles are unattended?

During non-business hours, are company vehicles kept in a secure location with adequate key control?

Where valet parking service is provided, do drivers meet the same criteria as drivers of company vehicles?

Where valet parking service is provided, are policies in place to address care and security of customer vehicles?

Driver Qualification, Training, and Supervision

Are drivers properly licensed?

Is the operation of vehicles restricted to qualified drivers?

Is a driver’s State Motor Vehicle Record obtained when first hired, and periodically updated and reviewed?

Where driving will be part of the applicant's responsibilities, do reference checks include information on driving?

Is a driver’s condition (e.g., fatigue level, use of medications, etc.) taken into consideration before assigning a driving task?

Are drivers trained on the location of controls on company vehicles and procedures to follow in the event of a breakdown or accident?

Are drivers trained on how to properly inspect company vehicles they will be operating?

Are drivers trained in the principles of ‘defensive driving?’

Are records of driver qualification and training documented in the employee’s personnel file?

Are schedules developed that take a driver’s fatigue level into consideration?

Vehicle Maintenance and Inspection

Are company vehicles properly maintained and are maintenance records kept?

Are drivers required to inspect company vehicles before operation?

Accident Reporting, Recording and Analysis

Are drivers trained on what to do at the scene of an accident?

Does management record and analyze each accident to help prevent future occurrences?

[Exposure Abstract]

Risk Management Information

Golf Courses

Liability Exposure Assessment

[Liability Exposure Controls]

The following questions highlight factors to be considered when evaluating a golf course operator for liability exposures.

Loss Control Management

Is there an organized system for managing liability exposures?

Do employees receive orientation on their responsibilities under the system?

Course and Grounds

Are parking areas well-lighted and well-maintained?

Do parking areas and private roadways contain adequate traffic control measures?

Are reasonable measures taken to protect parked cars, adjacent roadways, and property from errant golf balls?

Are outdoor paths and walkways maintained in safe condition?

Do golf car paths indicate the proper direction of travel?

Are steps taken to avoid hazardous path conditions (e.g., sharp curves or sudden terrain changes)?

Are signs posted requiring golf cars to stop before crossing roadways?

Is there an organized program for managing tree-related hazards at the course?

Are water hazards clearly delineated by markings or landscaping?

Are remote buildings and shelters on the course structurally sound?

Are remote buildings and shelters that are not protected from lightning conspicuously identified as being unsafe in during a thunderstorm?

Are practice areas separated from play areas to avoid errant ball hazards?

Are “no chipping” signs posted on practice putting greens?

Is there an organized program for addressing dangerous animals on the course?

Are sprinkler heads and control valves marked?

Are benches, fountains, and statuary inspected regularly for accident hazards?

Is drinking water provided on the course regularly tested for acceptable water quality?

Club House

Does the clubhouse have a sufficient number of means of egress?

Are exits free and unobstructed?

Is the maximum occupancy limit enforced?

Are building services installed and maintained according to local code?

Are fire alarms and extinguishing systems operable?

Are walking surfaces maintained free from protruding nails, splinters, holes, loose boards, or other hazardous conditions?

Are changes of level well lighted, clearly marked, and free of obstructions?

Are handrails firmly fastened to walls and steps?

Do outdoor ramps and stairs have slip-resistant surfaces?

Are glass panels and doors made of safety glazing?

Are locker room furnishings inspected for sharp edges, protrusions, or other hazardous conditions?

Are electrical outlets in bath and shower areas, outdoor areas, or other “wet” areas equipped with ground fault circuit interrupters (GFCI)?

Is the water temperature regulated in showers and faucets?

Are chairs and tables in food and bar areas arranged to allow clear aisle space for patrons and servers?

Are vending machines secured firmly in place?

Are product displays in pro-shops stable and free of obvious defects?

Are doors, barricades, and other access control devices used to restrict access to employee areas?

Are procedures established for addressing the increased accident risks caused by inclement weather?

Operations

Does the course post a code of conduct that customers must follow when on the premises?

Are rangers used to supervise customer activities on the course?

Do golf carts conform to the standard of the National Golf Course Vehicle Manufacturers Association?

Are golfers required to provide evidence of a valid driver’s license when renting a golf cart?

Do rental agreements contain appropriate warnings and risk transfer devices?

Does the golf course have procedures for addressing customer safety concerns during course maintenance activities?

Are open excavations and hazardous areas marked or barricaded?

Is maintenance equipment secured when not in use?

Is advance notice given about pesticide applications?

Are signs posted in recently pesticide treated areas when reentry is not allowed?

Does the course operator have a plan for addressing emergencies at the course?

Are steps taken to warn and protect golfers of anticipated lightning hazards at the course?

If the course requires the use of spikeless golf shoes, has the operator implemented practices for addressing the additional fall hazard concerns?

If the golf course hosts tournaments or rents out their facility for special events, do they have procedures for managing the additional risks of these special events?

Does the course have procedures for managing the risks of any independent contractors they may hire?

Liability Agreements

Are golfers required to sign written liability waivers prior to using the course?

Are statements printed on all course sign-in sheets, bag tags, tickets, and scorecards warning golfers that they are using the course at their own risk?

Are all persons participating in organized activities required to sign assumption of risk statements prior to participation?

Food Service

Are food products purchased from government-approved sources?

Are deliveries inspected prior to acceptance and unsatisfactory items refused?

Do supplier contracts contain indemnification agreements?

Is food stored and handled in a safe and sanitary manner?

Do workers who handle food follow good hygienic practices?

Is food stored and cooked at the proper temperature?

Are eating areas kept clean and sanitary?

Alcohol Service

Is management familiar with the State requirements governing the sale of alcoholic beverages?