What to Know About Getting RV Park Insurance
RV Parks come in all sizes and fit in all locations. An RV park can be a few lots next to a quiet stream or on acres of property with a pool, clubhouse and live entertainment. There's no "one-size-fits-all" RV park. Each is unique, and your RV park insurance should be unique as well.
In this article, we look into the types of coverage you'll want to consider when buying insurance for your RV park.
Summary:
Falling Trees
Falling trees pose a real hazard in RV parks. A sudden gust of wind that damage both a camper's property and represent a real threat to their safety. It's important for RV parks to insurance against falling trees with an appropriate level of property and liability insurance. This coverage typically falls under the "perils" or "named perils" section of the policy. Review the policy terms and conditions to confirm that falling trees are explicitly covered.
It's also important to document all site maintenance and work done on the RV park property. Insurance companies may have requirements regarding tree maintenance and risk mitigation. Regularly inspect your property for potentially hazardous trees and promptly address any issues. Document your maintenance efforts, such as pruning or removing dead trees, as it can demonstrate your proactive approach if a claim arises.
Propane Safety
Propane represents a real hazard to camp visitors and residents. Basically, each propane cannister is a bomb. Improper use or accidental handling can represent damage to property and even loss of life. For insurance purposes, the park is responsible for their canisters and for creating an environment where residents acknowledge their own responsibilities and requirements.
First, familiarize yourself with local, state, and federal regulations concerning propane safety in RV parks. Adhere to all requirements, such as proper storage, handling, and installation of propane tanks and equipment. Compliance with regulations, along with good documentation and policies, can reduce the risk of accidents and demonstrate your commitment to safety.
Second, regularly inspect and maintain all propane-related equipment in your RV park, including tanks, regulators, valves, and connections. Implement a comprehensive maintenance program to ensure that all equipment is in good working order and meets safety standards. Document your maintenance efforts to demonstrate diligence in the event of a claim.
Finally, develop and communicate an emergency response plan specific to propane-related incidents. This plan should include evacuation procedures, communication protocols, and coordination with local emergency services. Make sure that each residents knows the plan with signage and procedures (that they sign) and regularly review and update the plan as needed.
Guest Vehicles
Vehicles are a constant hazard in RV parks. With poor visibility and a danger even at slow speeds, recreational vehicles are a hazard that need to be managed. It's also an insurance risk that RV park owners need to plan for.
First, it's essential to require your guests to have their own insurance coverage for their vehicles while they are within your RV park. This coverage should include liability insurance to protect against potential accidents or damages caused by their vehicles. Make it a requirement for guests to provide proof of insurance before allowing them to park their vehicles on your premises. You should also make sure that your staff isn't allowing guests to park long vehicles in short stalls, thus creating a hazard. Staff needs to inspect a vehicle for proper size before allowing the vehicle onto the property.
Next, consider including an indemnification clause in your rental agreements with guests. These clauses can help protect you from liability by shifting responsibility for damages or accidents caused by vehicles to the vehicle owners themselves.
Finally, in some cases, you may want to request to be added as an "additional insured" on your guests' vehicle insurance policies. This arrangement can provide an extra layer of protection for your RV park in case of accidents or damages caused by guest vehicles. When would you consider this change? Consult with your Loomis Insurance Agency insurance professional to help you craft the right policy; however, some vehicles may be too large or pull too many "toys" to fit inside your normal insurance. Having an additional layer of protection helps you better protect your RV park.
Is Liability Insurance Enough for RV Park Operation?
Every RV park owner needs comprehensive liability insurance. However, is it enough to protect your investment? As an owner/operator of a private RV park, you may have taken care of the basic needs for insurance with property and liability coverage, but there are some coverage options that are unique to RV facilities that you will want to discuss with your agent. Some of these coverage additions include but are not limited to the following:
Dock Coverage
Double check that your property coverage includes some coverage for any boat docks or marinas you may have on site. Check on coverage for flood coverage limitations, as well as "collapse" coverage that helps you rebuild a structure when the weight of ice, snow, or sleet breaks through a roof. In our Midwest climate, these perils are real problems we face every year.
Special Events Coverage
Many campground owners offer special events around Independence Day with firework displays and on-premises cookout events. Fireworks display coverage is very specialized coverage with strict stipulations on where, what and who will be involved in the event. Most of the time, the local fire marshal will need to approve of the event plan to even qualify for display coverage. Other special events, such as concerts, car shows, and fairs, will need coverage specific to the event and these policies can take time to get approved. If you are planning an event, connect with your agent sooner rather than later!
Pools and Swimming Areas
Pools and swimming areas are popular gathering areas for family and friends to enjoy the lake or outdoors in the summer. If your campground houses a pool or a swimming area in a lake or river, you will want to have your agent provide coverage for this type of special liability. Your insurance carrier will ask that certain stipulations and requirements are met in providing this coverage, such as on-duty lifeguards, life preservers and safety rules publicly marked.
Miscellaneous Coverage
Consider specialized coverage for the following other areas as well:
General store
Restaurant (this may also require some Liquor Liability)
Laundry
Gun or archery ranges
Playgrounds
Water skiing
Boats and canoe rentals
Tennis, basketball, and volleyball Courts
Be sure to have your agent physically inspect your property and review your activities for coverage. They can spot areas of exposure, and it's all part of our service!
Cyber Liability
Cyber coverage is a recent development in camping, but it represents protection for a growing risk as long as you have some form of internet access available on site. Have public WIFI? You need to insure your business against hackers who may find vulnerabilities in your network. Offer online payments for fees? You should be certain you are protected against any cyber theft against your business and against your customers.
Get a Customized Insurance Quote Today!
Protecting your investment as a RV and camping park owner means managing risk. To do this well and to navigate the many rules and regulations you'll face, you need a partner!
At the Loomis Insurance Agency, we have trained producers and account managers who are excited to create a custom plan that meets your needs as an RV park owner. Reach out to us today for a custom insurance quote and expert advice.