"Bonus prizes" are smaller contest prizes that are offered (usually free of charge) as extra hole in one prizes when you purchase hole in one insurance. For example, imagine playing in a golf outing that has a hole in one grand prize for $50,000 cash, and despite your best efforts, you can not make a hole in one for that prize. Now imagine getting to the next hole and making a perfect shot for an ace even though there is no prize to win. How mad would you be that you made a great shot on the wrong hole! Bonus prizes solve this exact problem. When hole in one insurance is purchased for a grand prize (like the $50,000 cash you didn't win), bonus prize coverage is included for the other par 3s on the golf course. That way a tournament can offer a hole in one contest on every par 3 hole and avoid the disappointing situation explained above.