But there is one type of insurance that people buy to protect them from the consequences of unusually good luck: In Japan, the U.K., and, to a lesser extent, around the world, golfers buy insurance to protect themselves from the potentially bankrupting consequences of sinking a hole in one.
The concept of hole in one insurance may baffle the uninitiated, but to many it is a wise precaution as golf tradition holds that anyone who scores a hole in one should buy drinks back at the clubhouse for his playing group — if not everyone present. In Japan, many give extravagant gifts to friends and family after scoring a lucky ace.
And indeed there is such an institution:
A number of firms offer hole in one insurance, frequently bundled with other services that golfers commonly buy like insurance for golfing equipment or personal liability. (Apparently yelling “Fore!” can’t ward off lawsuits if you hit a ball right at someone.) Golfplan, a U.K. insurer, covers $340 to $510 worth of drinks for hole in one celebrations. (Clubs’ set of rules for validating a hole in one makes it easier to process claims.) When it is sold unbundled, hole in one insurance can be cheap; Tokio Marine & Nichido Fire Insurance Co. Ltd offers Japanese golfers hole in one insurance for as little as a $3 premium. Outside of individual policies, golf tournaments also get hole in one insurance so that they can offer huge cash prizes for a hole in one as a marketing promotion — it’s the same type of “prize indemnity” insurance that covers teams when a fan sinks a half court shot or makes a field goal.
In the United States, where the custom is less firmly established, golf forums are filled with debate about what tradition demands. Some clubs have written the tradition into their rules. The New York Times notes that the membership dues at one San Francisco club include covering $250 worth of drinks to celebrate any hole in one, while a similar system at a club in Bremerton, Washington, gives pro shop and food and beverage credit to the lucky golfer — it’s up to him or her to share.