Frequently Asked Questions

How hole-in-one insurance works, what it costs, how to set up a contest, and more.

Below are some of the most frequently asked questions from golf tournament organizers, hole-in-one prize sponsors and curious golfers with respect to how hole-in-one insurance works, what it costs, how to set up a contest and more.

The guidance is sometimes specific to Stellar Hole-In-One and sometimes more general. Your full terms and conditions are included in the actual hole-in-one prize contract and the comments below are given to help you plan your golf outing and show how you can make the most of hole-in-one prizes for fundraising and fun.

What is hole-in-one insurance?

Hole-in-one insurance is provided through a contract between a sponsor of a golf tournament and an prize company to offer a hole-in-one prize at a golf outing. The sponsor pays a fraction of the cost of the hole-in-one prize, and the payment of the prize is insured by an insurance company so if a qualified hole-in-one is made the cost of the prize is paid.

Why is hole-in-one insurance good for events?
  • Golfers love to play games, compete, and win. A chance to win great prizes is the kind of fun they remember.
  • Sponsors get to greet and meet the golfers who have paid to play, showcase their product or service, benefit a charity, all in a fun and stress-free environment.
  • Event organizers can raise more money for the cause through sponsorship and will have long-term success with more golfers returning in future years because of the investment in a fun event.
Who typically buys hole-in-one insurance?

Generally, hole-in-one insurance is bought by one of two groups:

The golf event organizer will purchase hole-in-one insurance for two reasons. First, it will make a better experience for the golfers at the event and as such golfers are more likely to return next year. Second, having hole-in-one prizes opens a profitable sponsorship opportunity selling sponsorships for more than the cost of the prize coverage.

Hole Sponsors may by hole-in-one insurance directly. Some events forgo selling hole-in-one prize sponsorships and permit sponsors to buy the coverage directly. Sponsors can buy hole-in-one prize coverage directly and place their prize on the hole agreed with the event organizer.

Why are sponsors interested in supporting golf events?

Charitable golf events are an effective affinity marketing strategy to reach a select market at a reasonable cost. Many golf events support important community causes that many sponsors want to support. Most golfers at charitable golf events live in the community and are active members of the community leadership. This sponsorship creates an opportunity to reach an important market that can change a business’s future.

Sometimes sponsors seek to meet golfers and industry leaders at a trade shows or conventions. This can capture attention in a fun manner that creates more inquiries for their product or service.

How does hole-in-one insurance work?

To make the coverage effective the terms must be agreed upon, and payment must be made in advance of the tournament date. When a qualified hole-in-one is made, the prize value agreed in the contract is paid to the sponsor.

What kind of prizes can be covered by hole-in-one insurance?

Almost anything can be a prize. Cash, cars, vacations, and jewelry, are the most common prizes awarded. The contract price is based on the insured value of the prize. This agreed value is paid in cash to the sponsor when a qualified hole-in-one is made.

If you are a sponsor and your business provide products or services that are suitable for a prize for most of the golfers, then, by all means, the prize should represent your business. We’ve covered coffins for mortuary conventions and zebras for zookeepers.

If your business is a service that is not suitable as a prize for most golfers, you can still participate and reach the audience by offering a cash prize. Cash is the most desirable prize for golfers to win and you still reach the market and support your local charity.

Can I buy hole-in-one insurance for events that are not regular tournaments?

The answer is yes, but generally subject to some conditions. The most common type of event allowed is a fundraising shootout held at a driving range.

We have covered fundraisers on floating pontoons, events with glow-in-the-dark golf balls and on constructed greens built a park or baseball field. We would be happy to consider your variation but will need a complete description to see if we can meet your needs.

How much does hole-in-one insurance cost?

The cost of hole-in-one insurance depends on a few variable factors.

  • Who and how many players will be taking shots? Are the players all amateurs or are there any club professionals or tour professionals eligible to win the prize?
  • What is the distance of the hole to be played? Shorter distances are more expensive and longer distances are less expensive per shot.
  • What is the value of the prize? Smaller prize values cost less per shot than larger prize values.

The final cost of the prize coverage is entirely up to you. You can make a prize offer fit almost any budget from $119 and up simply by adjusting one or more of the variables. Usually, you can estimate the number of players, then you can adjust the prize value and hole distance to fit your budget.

Must hole-in-one insurance cover all players in an event?

All players in a skill class must be covered. For example, if you are providing a prize opportunity for amateurs, all amateurs must be covered. However, if there are professionals playing in the event it is common to exclude them from a chance to win the prize.

Of course, you should always make it very clear to the players what groups are eligible and what groups are excluded from the prize competition.

Can I buy hole-in-one insurance when I am not sure how many players will be there?

Of course. Many events estimate the number of golfers and buy the coverage to secure the sponsorship and receive signs prior to the event. If there are changes to the actual number of golfers, you can report the final number before to tee time via telephone or email. You must complete this notification prior to the event start. The contract fee will be adjusted upward or downward based on the actual final number of golfers.

What if I am not sure of the hole I should use for my hole-in-one prize?

We can help! We have a library of golf courses from throughout the country. We can quickly help you identify the various options and give you real live hole-in-one insurance price estimates for each hole on your course.

What if I am not sure of the prize I want to give away?

Hole-in-one insurance is not based on the type of prize but rather the cash value you set for the prize. It is not important for us to know what the prize will be in order to give you an accurate price. We will put the prize description on your sponsor signs so when you finalize your order, we will need to know the correct description.

Instead of designating a specific hole-in-one prize such as a Hawaiian vacation or a specific model car many sponsors offer a cash credit towards a vacation or car purchase.

What else do I get with hole-in-one insurance?

The choice is yours!

  • You can get a contest with only the main prize. This is the least expensive option and provides only the coverage of the designated prize if a qualified hole-in-one is made. This can be a desirable option if you have suitable sponsor signs of your own or if you do not need to advertise your sponsorship.
  • Second, you can add a sign for your designated main prize. Our sign contains the prize description as you defined it, the date, the hole number, the distance to be played from, and the sponsor name and/or logo if the artwork is provided.
  • We highly recommend getting our bonus prize package that has fully customizable prizes with a cash value up to $555. The signs for these prize sponsorships have fully customizable sponsor names also. As a sponsor, you will get 3 times the recognition. As an event organizer, you will have 3 more sponsorships you can sell.
Can I have hole-in-one insurance for multiple main prizes in one event?

Of course. Each hole will be rated based on its distance, number and type of players, and the main prize value you wish. Each hole can have signs created for it and each hole can have a separately named sponsor.

Are hole-in-one prize winnings taxable?

We suggest you consult with a tax advisor. However, it is our understanding that winnings from hole-in-one prize insurance are taxable to the winner.

What are the prize sponsor’s responsibilities for hole-in-one insurance?

This checklist is meant to be a general reminder of how to properly run the prize competition properly but may not be complete and is subject to conditions of the event and golf course.

In short, make sure the contest is performed in compliance with the terms you have specified and agreed to in the prize contract. To best accomplish this, be certain to communicate and coordinate with the golf professional and the tournament organizer.

  • Ensure the competition is set up on the correct hole(s)
  • Make sure the distance of each hole is set up properly for men’s and ladies’ tees
  • Confirm the maximum number of players in the competition
  • Make certain the witness requirements are met and the witnesses are in attendance and located in a safe position to observe the hole and the players in the competition. Regardless of their location at the tee, the green or in between, witnesses should observe conclusively the ball in the hole.
What are the witness requirements for hole-in-one insurance?

The following are the general witness requirements for hole-in-one insurance. Certain types of events and prizes may

  • Prize values up to $5,000 require at least two playing partners attesting to the hole-in-one. Therefore, make certain the golfer pairings are at least threesomes.
  • Prize values from $5,001 to $50,000 require one non-playing non-participant witness
  • Prize values from $50,001 to $100,000 require two non-playing, non-participating witnesses
  • Prize values from $100,001 and up require two non-playing, non-participating witnesses, one of whom is a PGA Professional, and videotape of the hole-in-one shot from behind the green with the hole in the frame and the golfer in the distance also in the frame.
What is prize restoration in hole-in-one insurance?

When a hole-in-one occurs, the contest is not over. Our hole-in-one insurance provides that for prize values up to $99,000 the players who follow the winning golfer after the hole-in-one is made still get a chance to win the prize a second time. For prizes, $99,001 and up prize restoration may be available for an additional charge.

Imagine if you hosted a golf tournament and a golfer hit a hole-in-one. That’s fabulous. But then, imagine a second golfer hit a hole-in-one a few shots later. If you don’t have prize restoration, the second golfer wouldn’t be paid. Prize restoration is very important for your tournament. Each golfer should have the chance to win.

What do the golfers need to know about a hole-in-one prize contest?

First, acknowledgment of the sponsor should be prominent among the opening instructions to the golfers. A brief overview of the hole(s) and tees the golfers should play from is appropriate.

If the golf event provides for mulligans or substitute shots for groups with a missing player, the golfers should be informed that only the first attempt by any player is eligible for the prize. Subsequent attempts by any player are mulligans or substitute shots and are not allowed to win the hole-in-one contest.

What are hole-in-one insurance add-on events?

Add-on events offer tournaments more opportunities for golfers to play contests and win great prizes and can add greatly to the fun factor of the event. They also provide additional sponsorship and fundraising opportunities. We offer three standard events that that are designed to be used at different times in the event to help with getting your golfers where you want them to be.

See more details about our events

Putting Contests

Putting contests are a great way to add an additional sponsor.

This contest can be managed in one of several ways; the examples below are not required for qualifying your one final contestant. However, it is important that, whatever your qualifying method, there is only one identified final contestant getting one attempt for putt for the prize from 50 feet.

  • As a fundraiser, this can be managed as a raffle draw selecting one ticket and allowing that player to make the final attempt.
  • You can also have a qualifying competition where, for instance, where all golfers can take two attempts from 15 feet. Everyone who makes the putt from 15 feet gets into the semi-finals where they get one attempt from 25 feet. If there is a tie or more than one golfer makes the 25-foot putt, you continue the semi-final elimination until one finalist is selected. The one finalist gets one attempt from 50 feet to win the agreed-on prize.

Many tournaments use this before the event to get the golfers gathered at the practice green for the instructions regarding the tournament rules. Other events use this as a reward for longest putt made on a hole or other monitored contest during the event.

Shootout Contests

Shootout contests are another way to add big-value prizes and sponsorships on a budget.

These events allow selected participants to attempt shots from 165 yards for a large prize, perhaps larger than the regular hole-in-one prize. The method of player selection is entirely up to you but most people use one of the following:

  • As a reward for entering a raffle
  • As a reward for closest to the pin on par three holes

Most often this is used at the end of the event to get golfers together after the round for announcements etc. We offer three standard prize option for 2, 4, or 8 players from 165 yards with prizes from $100,000, $50,000 or $25,000 respectively. If a player makes the shot from 165 yards they win the agreed-on prize. $1,000,000 shots for grand prize annuities are available upon request.

The usual setting for this competition is the 18th green, but any hole near where the golfers wrap up their round and take their equipment is fine. The distance must be 165 yards and so, in most cases, organizers work with the PGA professional to set up the shot in the 18th fairway.

Dice Roll Contests

This competition is for everyone. Some golfers are reluctant to enter contests of golf skill because they believe it is unlikely they could win. This prize competition comes with a guaranteed winner and most people use it after the round when giving out awards.

Usually, four contestants get one roll of 4 dice and the low score wins the guaranteed prize. Alternatively, one contestant gets the guaranteed prize and 4 attempts to roll for the grand prize. Either way, if a person rolls all four 1’s of the dice in a single roll of the four attempts they win the agreed-on grand prize


Hole-in-one contests with prizes backed by hole-in-one insurance are very important to the success of any event. They add fun for the golfers. The contest adds an opportunity for raising more sponsorship contributions. Sponsorship can add to the outreach and help communicate the goals of the cause. The contests are easy to execute with the help of the PGA professional and the tournament organizer. The contest with prizes backed by hole-in-one insurance is an essential part of the success of events that continue year after year.