"What is Shootout Contest Coverage?"
Shootout contest prize coverage is a contractual agreement that allows golf events to offer incredibly large hole in one contest prizes for a handful of participants for a fraction of the cost of the actual prize.
"How Does It Actually Work?"
By securing shootout prize 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 hole in one shootout contest winner, we become responsible for paying out the prizes.
A Simple Example: Smith, Inc.
The Smith company is running its annual golf tournament. They decide to hold a shootout hole in one contest on the 18th hole at the conclusion of the tournament. Two participants, both randomly selected from the field, will attempt to make a hole in one from 165 yards away for a grand prize of $1,000,000!. Prior to the event, Smith decides to purchase shootout contest coverage for those two participants from US Hole In One for $400. When Jane Doe, one of the shootout participants successfully makes an ace during the contest, she is awarded a check for $1,000,000 (to be paid in a 40-year annuity). However, because Smith, Inc. purchased contest prize coverage, US Hole In One writes the checks totaling $1,000,000. Total out-of-pocket cost to Smith: only $400.00.