Golf club insurance premiums are directly related to the level of risk your commercial property poses to guests as well as the surrounding territory. This may be of particular importance to golf club insurance policy holders, as properties tend to be in communities that are fairly remote. A club may pose a certain amount of risk to their own property as well as neighbouring residential or commercial properties. The Fire Underwriters Survey analyzes data in order to arrive at a classification of individual communities across Canada. Where is your club located? This can affect a commercial property policy.
Learn More About Your PFPC
Your Public Fire Protection Classification (PFPC) expresses a community’s level of preparation and prevention in case of an incident. Receiving a Class 1 designation is the highest level of public protection; while 10 infers that there is little to no effective protection. When calculating risk levels to commercial property, insurers take these numbers into account. Insurers examine a variety of areas to determine the rates/premiums that can be charged to clubs. While there is no express formula for how the PFPC rating affects your premiums, you can be certain that it plays an important part in the overall risk calculation process.
What do Underwriters View as Top Risks?
In general, insurers regard location as part of the major risks associated with damage to building and equipment caused by a fire. Both underwriters and PFPC data collectors analyze areas such as:
- Distance from recognized water supplies, such as hydrants: also hydrant water flow analysis
- Distance analysis with regards to fire stations
- History of claims for fire in particular
- The loss experience of the insurance market in your area
- The type of coverage already assumed
- Electrical code compliance
- Alarm, detection and suppressant systems
Golf Club Insurance Protection and the Grade
At present, the Fire Underwriters Survey (FUS) does not send a community’s grade directly to the insurance industry, but insurers do use this information to:
- Identify opportunities for writing new business
- Review loss experience for various territories
- To price policies for individual properties
In terms of being proactive in risk management and golf club insurance, it’s best to learn more about your area’s capacity to contain a fire. Safety is considered a balance between your local community’s emergency response ability and your club’s level of prevention and protection. Talk to a broker and examine your current level of safety and what can be done to improve risk management plans.