Important Insurance Considerations for RV Park Owners and Managers
A Special Feature from Peter Lovering, Business Development Specialist, Signature Risk Partners Inc.
In the world of RV Park management and ownership, having up-to-date and properly worded commercial insurance coverage can be the difference between the literal loss of the business or its long-term survival.
Many owners and operators mistakenly believe that their Insurance Broker is the insurance company. However, the role of a commercial Insurance Broker is to canvas the ever-changing insurance company offerings to find the best coverage and a competitive price that will fit the varying needs of RV Parks and Campground facilities.
Some key considerations for insurance renewals include:
- Updating Building Values: Given the recent increases in the cost of everything (inflation) a simple renewal of previous building limits might leave you vulnerable to being under insured. You must review the values of your Buildings and Equipment every year to make sure that you are properly covered and protected in the event of a claim.
- Understanding Business Interruption Coverage: Simply having business interruption coverage does not guarantee it will cover you adequately. Work with your Insurance Broker to properly understand this coverage. For example, missing two weeks of business in July can be the equivalent to three months’ worth of revenue at other times of the year. You also want to be sure that you will be covered in the event of a Civil Interruption which can occur as the result of a wildfire in your area.
- Recognizing Unique Risks of the Outdoor Hospitality Industry: RV Parks and Campgrounds feature many elements that can be confusing to general insurance companies such as water slides, bouncy pillows, playgrounds, pools, sports courts, boats, and canoes. It is essential to ensure these features and activities are clearly understood, disclosed and properly covered by your policy.
- Managing Natural Disasters: In the great outdoors, a severe windstorm can cripple an RV Park, especially if it’s an older park with mature trees. Adequate coverage for such events is necessary. Additionally, debris removal is a critical consideration. Wildfire has become a recurring risk and fires can devastate large areas. Ensuring your policy covers these exposures and cleanup efforts is essential for quick recovery and minimizing your financial losses.
- Implementing Waivers: Every person entering onto your site poses a real risk, not just seasonal renters but their guests as well. Having an easy-to-use electronic waiver program allows you to quickly highlight the inherent risks associated with RV Parks and more importantly provides you with the peace of mind knowing that you can quickly retrieve a signed Waiver in the event of a claim that may not come until a year or more in the future.
- Covering Glamping Options: Glamping is a hot topic, and everyone is seeking new experiences. It’s especially important to ensure that new cabins, glamping domes, rented trailers, yurts, and other unique accommodations are explicitly named in your insurance policy. If your features are not named, you are likely not covered.
These considerations are just a few examples that go beyond the usual liability and property coverages offered by a general insurance company. The key to being properly covered by your insurance is to do a thorough review of all the available options annually at your insurance renewal.
Work with your Insurance Broker to make sure that your unique needs are being met and that you are buying the best coverage available to the industry.
Signature Park is part of Signature Risk Partners Inc., and a proud partner of the Canadian Camping & RV Association. Signature Park offers the only customized insurance policy written exclusively for the RV Park and Campground industries and is available through all licensed Insurance Brokers in Canada.
Please visit www.signaturerisk.com or call your Insurance Broker to find out more and get a quote.
