"What is Putting Contest Coverage?"
Putting contest prize coverage is a contractual agreement that allows golf events to offer valuable putting contest prizes for a fraction of the cost of the actual prize.
"How Does It Actually Work?"
By securing putting contest coverage, you have a prize indemnification provider (e.g. US Hole In One) assume the risk associated with running the contest in return for a small fee. Therefore, when you purchase contest prize coverage through US Hole In One, if you have a putting contest winner, we become responsible for paying out the prizes.
A Simple Example: ABC Products, Inc.
The ABC Products company is running its annual golf tournament. They decide to hold a putting contest on the golf course's practice green at the conclusion of the tournament. The grand prize putt will be set up 50 feet from the cup, and the golfer who successfully makes the difficult putt will be awarded $10,000. Prior to the event, ABC decides to purchase putting contest coverage from US Hole In One for $350. When Thomas Smith, the putting contest finalist successfully sinks the putt, he is awarded a check for $10,000. However, because ABC Products purchased contest prize coverage, US Hole In One writes the $10,000 check. Total out-of-pocket cost to ABC Products: only $350.00.