We had a RV Park and Campground client ask our insurance agency to come up with things that may be “Red Flags” to insurance companies. Red Flags meaning exposures that are hard to insure and may change the course of a commercial insurance policy. The below list are things that campground insurance underwriters think about..they are things that insurance companies refuse to insure, they are things that insurance companies limit insurance for, sometimes they are covered, sometimes they are not..sometimes they are expensive. Bottom line is check with your insurance carrier before making changes to your business and your insurance policy:
- Inflatables, Jumping Pillows, Zips, Ropes, Climbing Walls, skate parks, rental of tubes, jet skis and boats: Only a few insurance companies will insure these risk.
- Pool Slides: Most of the time tube slides are considered better exposures, still check with your insurance company before making this investment.
- Hay Rides – What type of equipment are you using, how is it pulled, what rules do you have, where are you doing the hayrides…does your insurance company insure them?
- Fireworks – Is your RV Park putting this display on? If there is a company doing the fireworks, do they have insurance, can they add you as additional insured..? Talk to your agent, firework displays are not something many companies want. You may even have to cut that event out and insure it separately and it can be expensive.
- Caretaker on premise. Who oversees the campground, many insurance companies will not insure the premise if a caretaker is not present.
- Fenced Pool – Everyone knows this is a must.
- Large Special Events – Again..it depends on event and attendance amount. Ask your insurance agent. Also if you have a campground that is located next to a major event attraction…there is a chance you may have to shop harder for an insurance market.
- ATV riding…really tough insurance market. Very, very hard exposure to insure.
- High liquor/beer sales – high receipts can be tricky for insurers. The breakdown most insurance companies look at is liquor/beer to food ratios.
- Gas and Propane Sales – Insurance coverage can be found, some companies don’t like propane, some companies do not like gas sales. Again exposure is broken out by receipts.
- If you are new in the RV Park and campground industry it may be harder and more expensive. The reason for that is because insurance companies want to see some history; they want to know what your management experience is. Do you have recreation and hospitality experience?
- Covered Boat Slips (Property Coverage) Depends what the coverage amount is, location, construction type, etc..
- Old Buildings and No Updates (Property Coverage) – Due to storm losses, insurance companies are really making sure they understand the buildings they are insuring. Old buildings with no updates can be hard to find insurance for; or can have stripped coverage. Watch for high deductibles and low insurance to value coverage. Ask your insurance agent to explain property insurance coverage.
Additional questions or help about insurance for RV Parks and Campgrounds: Brandon@johnbaileyco.com or @brandonclarke