With many enquires with the clubs situation with members stored carts, below is a detailed explanation of the coverage as provided by our insurance broker Bruce Wotton.
Initial Intention.
It was decided by the Board of Directors some years ago to offer to Members a benefit of insurance coverage for Members owned Golf Carts stored in storage sheds by the Club. This benefit is included in the Club’s insurance asset value at a considerable cost to the Club.
This benefit was not intended to cover individual losses but to reimburse Members for a catastrophic loss.
This benefit was highlighted back in September 2011 when Yamba Golf Club suffered a total loss of Members Golf carts in a storage shed following a fire. The then, Secretary Manager (Greg Acret) is stated in media releases that “it is the owner’s responsibility to insure their carts”. It is my understanding that none of the lost Golf Carts were reimbursed by Yamba Golf Club.
My recent enquiries with regional Golf Clubs have identified that Grafton Golf Club is the only Golf Club offering insurance coverage under the Club’s Property insurance to Members for their stored golf carts.
Existing Insurance coverage – Industrial Special Risk (Property insurance).
The existing insurance covers Members Golf Carts in storage up to a maximum Indemnity of $500,000 anyone event. The Club’s insurance has a $10,000 excess each, and every event. This would alleviate any individual cart losses or damage and again highlights the intention of cover is for a catastrophic loss.
The coverage for Members Golf Carts has the following Conditions:-
i) Cover is for Indemnity value (ie. Market value of the golf cart NOT new replacement value).
ii) Cover is warranted that the golf cart is not otherwise insured. A number of the Members may find that their own Home Contents insurance covers Golf Carts whilst stored away from the home situation. This Warranty is to ensure those Members with coverage under their own Home Insurance will claim from that cover.
iii) The cover for Property Damage Perils is restricted to golf carts whilst stored in the designated storage shed. It will not cover loss or damage to Golf Carts whilst in use, whilst travelling or being transported or whilst stored at another address.
Existing Insurance coverage – Liability insurance.
The existing insurance covers goods in Physical and/or Legal control.
This extension would be common to most Golf Club’s under their Liability insurance.
The requirement under the Liability insurance is that the Club must be proven liable for the loss or damage before any payment would be made to a Third Party.
I want to take this opportunity to highlight to your Members with golf carts stored in the Club’s storage shed/s that they should ensure that they have a Home Contents insurance that identifies Golf Carts as contents and has a Personal Liability cover anywhere in Australia.
They should discuss with their own insurer what is the coverage under the Property section AND under the Personal Liability section.
I advise that a Member storing a golf cart on Club premises may be held liability if it is found that the resulting loss or damage was due to their negligence or that they are Liable for the damage.
Whilst the Club’s insurance will reimburse the Club under the coverage of their insurance that Insurance Company has the right (subrogation right) to recover all cost paid out by them from an identified Third Party who was at fault or is liable.
If they anything else you want me to include or explain, please contact me.
Yours Sincerely
Bruce Wotton
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