Although some tournament planners elect to “take the chance” that no one will make a hole in one and thus provide the full prize out of pocket, it is best to consider risk event insurance. For a small premium, you can provide a golf trip, a cash prize and even a custom prize such as a vehicle or jewelry for a few dollars per player on average. Premium totals are typically based on the cash value of the prize and the number of players in your field. If a hole in one is made, you will not be responsible for paying out the full prize. You simply pay an affordable premium in advance of the event and the actual prize is provided by the risk event company. You may want to give one of your sponsors the opportunity to pay for the risk event premium. They will be recognized with a sponsor sign on each par 3 hole.
A typical Hole In One package includes four prizes (one for each par 3 hole) broken down into one major prize and three bonus prizes. Every player in your field will take one shot on each par 3 hole to win the corresponding prize during the course of tournament play. Alternatively, events such as the Putt Fore Cash and Million Dollar Shot are referred to as “Grandstand Events” where one person per premium takes one attempt to win the corresponding prize before or after tournament play. Grandstand events are designed for spectators and usually require video taping in addition to an official witness.