We are writing to inform you of important changes to the Player’s Personal Liability Insurance Policy offered by Golf Australia, which is a key benefit of affiliation membership for all club members.

These changes have been implemented to ensure this policy, which has been in place virtually unchanged for 15 years, can continue to protect players going forward.

In recent years, it has become increasingly difficult and expensive to source this insurance.  As the popularity of golf has grown, we have seen an increase in the number of incidents reported. Golf Australia remains committed to finding solutions that will provide Players Personal Liability Policy to Australian affiliated golfers.

In recent months, Golf Australia has reviewed several options in respect of this policy.  In doing so Golf Australia’s primary objective has been to maintain protection for members in the event of serious personal injury, with changes to take effect from March 1, 2025, to ensure the policy remains affordable and sustainable.

1. Policy Background

Golf Australia has maintained this insurance policy for affiliated club members since 2009 as a key feature of membership.  Negotiating as a collective, we can secure coverage at a far lower cost than would otherwise be available to individual clubs and/or players, whilst delivering quality coverage for the benefit of members.  Over the past five years, the policy has paid $3.4 million in claims to protect our members.

As an added incentive for golfers to take out a membership, insurance has always been limited to club members and does not apply to non-members or green fee players.

The original purpose of the policy was to protect members from significant liability if they caused personal injury to another golfer/person.  The policy was established following the legal action taken by an injured golfer because of an incident at the Magnetic Island Golf Club in 1994 and subsequent court ruling in 2003.

Golf Australia’s Player Personal Liability Policy offers up to $20 million personal liability cover with nil excess for protection against litigation from a third party for damage to property or personal injury that occurs while an eligible member is playing or practising golf.  Golf Australia sources this policy each year and forms part of the National affiliation fees which each Club pays on behalf of all affiliated golf members.

2. Policy Review

There has been a significant increase in claims frequency over the past five years on the policy, with claims rising by 129% since 2020 to a total of 581 submitted in the 2024 financial year.

Our review has identified that most claims against the policy over recent years fall outside of the original intent of the program.  Specifically, while the policy was intended to provide coverage for personal injury claims, the policy is now being primarily used for property damage claims, many with small financial value.

A high proportion of these claims are concentrated to a small number of clubs that experience property damage claims at a significantly higher rate than the balance of the industry.

The direct consequence of this increase in claims is that the cost of the policy has increased significantly, and Golf Australia is now challenged in sourcing insurers that are willing to provide coverage.

It is for this reason that Golf Australia has considered several changes in respect of this policy.

3. What is changing?

The following changes to the policy terms, will take effect from March 1, 2025.

Exclusions: Specific exclusions have been added for any claim, loss, damage, liability or costs and expenses incurred directly or indirectly in connection with third party property damage to:

golf carts; and

personal electronic devices include phone, iPad, watch, rangefinder or anything similar.

Excess: There are now three categories of insurance claim:

a. Personal injury claims – NO excess will be payable

b. Property damage where golfer is found to have followed all expected duty of care, local rules and the Rules of Golf – NO excess payable

c. Property damage where golfer is found to have acted in a negligent manner and caused damage to a third-party property - $1,000 excess is payable

Claims Process: Before the excess is payable on all property damage claims, the insurer will conduct a thorough investigation to determine if the individual member is likely to incur any legal liability through negligence.

The policy was established to provide legal protection for affiliated members, not to provide cover for any golfing incidence regardless of the cause, and in some instances, the cause of the incident may be found to be another party (ie.  Club with a known boundary issue).

In these instances, the insurer will indemnify the member as is the intent of the policy and if the insurer determines that that member was not negligent in their actions and therefore not liable, then the insurer may choose to defend the claim rather than settle the claim.

With this increased focus of investigation during the claims process, Clubs that are involved in a high level of property damage claims must ensure they have adequate risk management practices in place to reduce the likelihood of recurring incidents occurring.