The camping business continues to grow and present attractive opportunities for business owners, but there is also an ever-increasing need for campground owners to protect their assets and business from potential risks. Campgrounds are an open, outdoor environment that can be prone to various hazards, and it is essential to have the right insurance coverage to minimize threats to a campground owner. Following are some risks and suggested insurance options to mitigate those risks.
Property Damage:
Damage to campground properties can result in significant financial losses. This may be caused by various factors, including natural disasters such as floods, earthquakes, and hurricanes, as well as human-induced damage like vandalism or theft.
As a hedge against such risks, a campground business should at least have commercial property insurance, which will cover any damage to the buildings or equipment, including the campsite infrastructure, cabins, and recreational vehicles such as boats, ATVs, and motorhomes.
Flood and earthquake are not included in commercial property insurance, and depending on the location and vulnerabilities of a particular campground, may need to be purchased as well.
Liability Hazards:
Accidents on your business property or related to business pursuits may be caused by a number of factors, making it challenging to predict or prevent. A guest may get injured while participating in an activity or a vehicle accident may occur on the premises.
To protect the business from such risks, the campground business should include commercial liability insurance in their portfolio, which will provide coverage in case of accidents or injuries caused by negligence or fault of the campground staff, employees or guests. Liability insurance will typically cover lawsuits, damages, legal fees, and medical expenses.
Business Interruption:
Business interruptions as a result of losses covered by property insurance can result in a temporary shut-down of the campground. These can be especially damaging during peak season when many bookings occur.
Business interruption insurance is intended to bridge the gap to recover the business' losses that resulted from a temporary closure. The policy may cover revenue losses, operational costs and other related expenses.
Other Coverage:
Owning a campground business can be a highly rewarding and profitable enterprise. But understanding the risks involved and having the right insurance protection in place is vital to ensuring that any campground business continues to be rewarding and profitable.
There are several other types of insurance that might be included in the insurance portfolio for a particular campground business including,
- Crime insurance
- Cyber liability insurance
- Commercial umbrella insurance
- Special events Insurance
- Inland marine insurance
How to proceed in securing insurance for your campground business? Get in touch with us, we can help you identify risks, suggest insurance coverage, and provide competitive quote options for your review.
