Did you know that the odds of getting a hole in one are 25,000:1? When you consider the fact the odds of being born with six fingers (500:1), being dealt a natural blackjack (20:1), and marrying a millionaire (215:1) are all more likely than the odds of a hole in one, you can begin to see the appeal of a hole in one competition.

Hole in one contests can be either stand alone events, or fun additions to golf tournaments. Typically, participants pay for a certain amount of chances to participate. They’re then allowed that many tries to make a hole in one on a designated par three hole. If they do, they’ll win a fabulous golf prize. During the summer of 2013, Jeff Burton won $1 million from a hole in one competition in New Mexico.

Yet, how can a charity or tournament afford such an extravagant prize?

That’s where contest insurance comes in. If nobody wins a hole in one competition, than nobody wins the prize. If someone does defy the odds though, as Mr. Burton did, then if the organizers took out contest insurance on the prize, they won’t have to pay anything.

Based on certain factors, such as the amount of chances participants are allowed, the size of the prize, and more, insurers will cover a hole in one competition’s prize for a premium.

It’s really a win-win situation. Advertising the massive prize helps attract more participants and builds excitement over the competition to generate a bigger turn out. If no one wins, then the competition paid their dues for better marketing. If someone does win big, the hole in one competition organizers won’t have to pay a single cent of the prize money.

If you’re thinking about hosting a hole in one competition, then you need to take out contest insurance. If you do, not only will you be able to offer a bigger, better prize, but you won’t even need to actually pay for it. If you have any questions about hole in one competitions, feel free to ask in the comments.