Agent Access to Specialty Campground and Resort Markets

Operators of campgrounds, RV camps, guest ranches and other recreation businesses confront unusual loss exposures, due in large part to their unique surroundings and the activities they promote.

For these businesses, securing insurance with full-breadth coverage at adequate limits of financial protection is a challenge.

These businesses commonly rely on a captive agent who works for an insurance carrier that does not specialize in the risks they face. Often, when reaching out for a coverage enhancement or higher insurance limits, the enterprise receives a polite declination.

The reason is neither the agent nor the insurer truly understands the company’s operations or the unique perils it faces. K&K Insurance, however, specializes in the risks of outdoor enterprises. Camps and campgrounds are two of the insurer’s biggest programs, and it’s also a primary market for related enterprises like RV camps, retreat centers and guest ranches.

“We take pride in understanding the singular risks and insurance needs of these businesses,” says Ron Norton, K&K’s senior vice president in its leisure division.

Thanks to its matchless domain knowledge, K&K is able to continually adjust its insurance policy language to provide new coverage enhancements and/or greater financial limits.

A case in point is insurance for wildfires. Local civil authorities can shut down a campground if a wildfire is many miles away from the facility. But the traditional ISO insurance form absorbs business disruption costs and expenses only if the fire occurs within a one-mile radius.

Cognizant of this added risk, K&K amended its business owners policy to provide both revenue loss and extra expense coverage for wildfires that occur within a 10-mile radius of a campground.

This customized approach to addressing the exposures of the recreational industry separates K&K from others. Whereas other carriers limit or do not offer business interruption coverage for loss exposures like mold and viruses affecting staff members and guests, K&K goes the extra mile to address the impact on the client.

“We’ve seen campgrounds and guest ranches shut down because of mold or an outbreak of whooping cough or N1H1,” Norton says. “Obviously, that has an effect on the facility’s property and liability exposures, as well as its reputation for current and future bookings.”

K&K recently introduced two coverage endorsements: one that defends and indemnifies the business for transmissible pathogens on premises, and another that picks up the business disruption costs.

Another property inclusion is law and ordinance insurance. K&K recently added greater limits of financial protection addressing enforcement of laws or ordinances requiring repair or demolition of damaged buildings.

Finally, workers compensation presents another unique insurance challenge for the recreational industry due to the unusual types of activities in which the staff engage. K&K now provides a separate financial limit of insurance addressing the enhanced exposure.

Norton says independent insurance agents can find a profitable niche serving the recreational industry: “Agents specializing in these companies can also help them grow.”