Caravan park owners understand that operating in the short term accommodation industry has its own particular risks. Whether burglary from a cabin or damage caused by tenants living within the park, it’s vital that owners are aware of these various risks, minimise them where possible and take out the appropriate insurance covers.
The following are some of the risks facing caravan park owners and/or park managers
Building and Structural damage
Caravans aren’t the only structures in place in a park, as a variety of facilities are often provided for both staff and residents. Depending on the size of the park, there’s administration buildings, toilet/laundry blocks, reception/shop and workshops.
It’s not just buildings that are at risk of storm damage, the supporting structures in a park can often be severely impacted by a natural disaster. Commonly, fences, lamp posts, boom gates, playgrounds and roads can be damaged in periods of high winds or flooding and are extremely costly to repair.
Damage can occur from a number of different areas, including vandalism, damage caused by guests, residents or the general public, fires, storms, other natural disasters and accidental damage.
Burglary is a highly unpredictable risk, insurance can be needed even if security systems and other risk management practices are in place. Due to the high number of park visitors at peak times, it can be easy for someone to steal items from the park..
Any loss or damage could set owners back beyond their financial means.
Liability cover is a necessity for the park owner or manager. It covers them against property damage or bodily injury caused to others. This might be a slip and fall in the wet areas to a falling tree branch damaging a caravan.
The role of an insurance broker
At MGA, we understand that taking out policies to cover your risks in owning or managing a park is confusing, that’s why we always make ourselves available to discuss your circumstances. Whether you’d like detailed cover information or help taking out a policy, our team is always prepared to help.
Caravan park owners and managers should make insurance a key consideration in their business plan.