1. GOLF COURSE INSURANCE & RISK MANAGEMENT January 29, 2011 11:45- 12:45

2. 2 TODAY’S AGENDA INTRODUCTION LOSS ANALYSIS FOR THE INDUSTRY LARGE LOSS LESSONS LEARNED WHY RISK MANAGEMENT? FACILITY LOSS CONTROL SURVEYS PASS – PERIL ASSESSMENT SCORING SYSTEM WRAP-UP

3. 3 GENERAL LIABILITY LOSSES 12 MONTH LOOK BACK – >$25,000.00 Cause of Loss % of Total Claims % of Total Incurred FALL23.8140.87 PERSONAL INJURY19.0519.24 DROWNING- BODY OF WATER9.527.15 ALLEGED-NEGLIGENCE9.527.10 SLIP / TRIP - INTERIOR4.762.17 SLIP / TRIP - EXTERIOR4.768.49 FATALITY - HEART ATTACK4.761.08 FATALITY - HOT TUB4.762.30 FAILURE TO MAINTAIN4.762.41 DISCRIMINATION - SEXUAL4.762.01 CAUGHT IN / UNDER / BETWEEN4.761.76 ALLEGED-WRONGFUL DEATH4.765.42 13% of All General Liability claims for the period.

4. 4 GENERAL LIABILITY LOSSES 12 MONTH LOOK BACK – <$25,000.00 “TOP 15” Cause of Loss % of Total Claims % of Total Incurred FALL18.1515.42 PROPERTY DAMAGE - MOTOR VEHICLE19.087.54 PERSONAL INJURY - ALL OTHER12.6220.12 SLIP / TRIP - EXTERIOR11.698.59 PROPERTY - ALL OTHER7.386.49 SLIP / TRIP - ALL OTHER5.235.82 SLIP / TRIP - INTERIOR5.549.50 STRUCK BY OBJECT5.545.73 PROPERTY DAMAGE/WATER1.548.38 SPORT ACTIVITY - ALL SPORTS1.541.39 POOL1.231.04 FOOD- POISONING1.230.58 STRUCK AGAINST OBJECT0.922.71 FATALITY0.920.20 BURGLARY & THEFT0.920.20 87% of All General Liability claims for the period.

5. 5 PROPERTY COVERAGE LOSSES 12 MONTH LOOK BACK – >$25,000.00 Cause of Loss % of Total Claims % of Total Incurred STORM64.1557.75 FIRE – ALL CAUSES13.2132.54 WATER DAMAGE5.661.71 PROPERTY – ALL OTHER5.662.21 WATER DAMAGE - BURST / FROZEN PIPE / PIPE LEAK / OVERFLOW3.771.66 WATER DAMAGE - SPRINKLER SYSTEM1.891.01 WATER DAMAGE - ROOF LEAK0.941.17 WATER DAMAGE - FLOOD0.940.34 EQUIPMENT BREAKDOWN / BOILER - ALL0.940.32 ELECTRICAL - POWER SURGE / TRANSFORMER0.940.21 COLLAPSE - SNOW / ICE LOAD0.940.65 BURGLARY & THEFT0.940.42 Totals100.00 18% of All Property Claims for the period.

6. 6 PROPERTY COVERAGE LOSSES 12 MONTH LOOK BACK – <$25,000.00 Cause of Loss % of Total Claims % of Total Incurred STORM35.5245.71 PROPERTY - ALL OTHER26.3916.31 BURGLARY & THEFT17.4616.37 WATER DAMAGE4.966.59 FIRE3.773.11 VANDALISM3.373.99 WATER DAMAGE - BURST / FROZEN PIPE / PIPE LEAK / OVERFLOW2.582.57 ELECTRICAL - POWER SURGE / TRANSFORMER1.790.56 WATER DAMAGE - SPRINKLER SYSTEM1.191.74 COLLAPSE - SNOW / ICE LOAD0.991.57 PROPERTY DAMAGE - MOTOR VEHICLE0.790.13 EQUIPMENT BREAKDOWN / BOILER - ALL0.600.48 WATER DAMAGE - ROOF LEAK0.200.17 MOLD0.200.04 EMPLOYEE DISHONESTY0.200.67 Totals100.00 82% of All Property Claims for the period.

7. 7 LARGE LOSS LESSONS LEARNED Claim DescriptionTotal Incurred Electrical fire to clubhouse. Causing the entire building to burn to slab. The local fire department took over 30 minutes to respond. There were no sprinklers at the location or smoke/fire alarm. The golf course was not prepared to handle operations after club house loss. Loss of operations for weeks to get temporary clubhouse operation started.$4M Bartender at the Golf Club had worked his shift then remained after work in the bar until 2 am. The bartender left the course with another passenger and proceeded to get into a motor vehicle accident causing his death and the hospitalization of the passenger. The Bartender was found to have an alcohol level of 6 times the legal limit. The bartender also was driving on a suspended license and had several DUI convictions. There was no Background & MVR Check performed at the club.$1M Dryer Fire at golf course. Fire was caused by lack of lint removal in the dryer causing a buildup around the Dyer Drum. The extensive damage to building was assisted by lack of sprinkler functioning. It was found that the sprinkler piping was incorrect and several heads were not in correct areas. This was not discovered during the sprinkler inspection by the local fire department.$1M

8. 8 LARGE LOSS LESSONS LEARNED Claim DescriptionTotal Incurred Golfer jumped on the back of golf cart for a ride. This was during a golf tournament at the course. The golfer fell off the back of the cart striking his head causing him to be hospitalized. The golfer's wife is stating that the group was intoxicated and over served by the golf course. $750K The fire originated in a first floor utility room in the building known as the Pro Shop building. Investigation has indicated the fire was the result of gasoline fumes from a leaf blower and its fuel container being ignited by the pilot light of a gas water heater located in the utility room. The leaf blower and gas can had been placed in the utility room for storage in error by an employee of the insured who had been using the blower earlier in the evening.$500K Golfer was driving cart between the green and tee box of the next hole. She then flipped over the cart causing herself to be ejected from the cart. The golfer sustained a fractured arm and ankle. Their was no golf cart waiver signed by this golfer at the course.$250K

9. 9 Benefits of Risk Management Program A DECREASE in the # of Losses. A DECREASE in the hidden costs associated with Losses (The Hidden Iceberg - Hidden costs can run 5 to 10 times the cost of the claim) Fines, legal fees Loss of customer Loss of goodwill Increased cost of insurance Deductibles Replacement cost of workers INCREASE IN PROFITS!

10. 10 Club Loss Control Surveys Critical in identifying and correcting hazards. Focus on unsafe work practices and physical conditions. Surveys can save lives. Use this risk management tool to: Identify and correct unsafe conditions and work practices before an accident occurs (patron & employees); Evaluate the effectiveness of your current safety training; and Assess to what extent employees follow safety rules.

11. 11 PASS – Peril Assessment Scoring System The PGA PASS is a customer-focused web-based risk management product and only available through the PGA PASS is designed to lead the the Club through the traditional risk management process by offering the user a questionnaire that empowers them with the tools needed to become the “Risk Management Executive”. This personalized Web-based PASS will quantify your key exposures and controls highlighting positive attributes. Produce solutions to reduce your club’s overall exposure to loss. You will have these solutions at your finger tips to answer and resolve risk management issues within minutes with the finished product being a high level report.

12. 12 PASS – Peril Assessment Scoring System PASS PGA LIVE DEMO LOG IN