Australia’s caravan parks get some serious use. The vast majority of Aussies (85 per cent) have stayed in a caravan holiday park at least once in their life, the Caravan Industry Association of Australia recently discovered.
What’s more, around 40 per cent of the population (9.3 million Australians) are planning a holiday in one of the country’s parks sometime in the next two years. No wonder the industry is worth a reported $1 billion in revenue and adds $17.44 billion to the Australian economy.
Fortunately, this good news is strongly felt throughout the industry. As well as working out the turnover statistic, IBISWorld Australia forecasts that the caravan park market has recorded an annual growth rate of 0.8 per cent over the past five years.
However, each park will also know that there are unique dangers that threaten their ability to perceive the benefits of such growth – from flooding to theft and a range of issues in between. For this, they rely on a caravan park insurance policy to help their business continue without a hitch.
So, what’s typically included in the coverage?
Caravan park property insurance
- Buildings: Coverage for loss of or damage to tangible products, including temporary and permanent buildings.
- Contents (including plant and machinery insurance): The items inside buildings can also be covered.
- Storm cover: Much of Australia has characteristically wild weather, so coverage to property (including fencing) helps mitigate against naturally occurring risks.
- Burglary and theft: Protecting your and your visitors’ on-site property from sticky-fingered individuals.
- Malicious damage caused by tenants: Protecting your property from harm caused by destructive guests.
Public liability insurance
On top of protection to physical goods, caravan parks also need to protect their financial assets from harm. Public liability insurance covers against compensation claims for unexpected or unintended personal injury, both in terms of tenants and employees.
Australian caravan parks employ more than 10,000 people, IBISWorld’s findings continued, so minimising the risk of accidents involving workers is equally important.
Public liability law suits can be expensive, which is why coverage can be taken out for up to $20 million, as well as $100,000 for goods in custody.
For almost three decades, MGA has specialised in the insurance of caravan parks, as well as being members of the Caravan Parks Association of South Australia. Please feel free to get in touch with your local insurance broker to discuss a tailor-made policy specific for your business.