Key Takeaways
- Consider general liability insurance to protect from lawsuits over guest injuries on your property
- Obtain property insurance to cover costs of damage to buildings, equipment and loss of business income after insured events
- Evaluate business interruption coverage to maintain cash flow if operations shut down temporarily due to insured losses
- Ensure workers’ compensation coverage is in place for medical bills and lost wages if employees get injured on the job
- Inspect commercial auto policies insuring vehicles used for business like shuttles and rentals
- Review umbrella insurance offering excess liability coverage above underlying policies
Introduction
RV parks and recreational camps face unique risks requiring tailored insurance solutions. This reference provides an overview of top options including general liability, property, business interruption, workers’ comp, commercial auto and more. Understanding available coverage types helps businesses in this industry make informed choices to protect operations.
General Liability Insurance
General liability insurance protects RV parks and recreational camps from costly legal battles and expenses due to accidents or injuries occurring at their facilities. It can help cover medical bills, property repairs or replacements, legal defense costs, and damages if found liable. General liability insurance also provides coverage for health issues from contaminated food/water and injuries from utilizing recreational amenities. The estimated annual cost for general liability insurance for RV parks and recreational camps is $1,500-$3,000 with an average of $2,250.
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Based on industry data and average claims, the estimated annual pricing for general liability insurance for RV parks and recreational camps with NAICS code 7212 is $1,500 – $3,000. This price range was calculated based on factors such as number of sites/units, annual revenue, amenities provided, claims history, and safety precautions in place.
Estimated Pricing: $2,250
Property Insurance
Property insurance provides crucial protection for businesses in the RV parks and recreational camps industry. It covers costs from accidental property damage, protects against liability risks, and ensures continuity of operations after a covered loss.
Key benefits of property insurance for this industry include protection from fire damage, storms and natural disasters, replacement cost coverage to repair or rebuild damaged structures, lost business income protection if operations are interrupted, and coverage for injuries that occur on the insured property. Common use cases where property insurance proved valuable include protection against fire damage to park facilities, coverage for property damage from accidents and weather events, and liability protection if a guest is injured on site.
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Based on averages from several insurance providers, the estimated annual pricing for property insurance for businesses in the RV Parks and Recreational Camps industry (NAICS Code 7212) ranges from $1.50 to $3.00 per $100 of insurable values. Considering the nature of the industry with outdoor facilities and properties, as well as potential risks of damages from weather, the estimated average annual price would be around $2.25 per $100 of insurable values. This pricing is calculated based on the total replacement cost of all buildings, grounds, and equipment less applicable deductibles.
Estimated Pricing: $2.25/100 of insurable values
Business Interruption Insurance
Business interruption insurance provides vital coverage for businesses in the recreational vehicle (RV) parks and camps industry (NAICS Code 7212). This type of insurance can help cover loss of income and ongoing expenses if operations are forced to temporarily suspend due to events like natural disasters, fires, extended power outages, wildfire damage, government closures during pandemics or other insurable events that disrupt normal business activities.
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Based on typical factors considered such as annual gross revenues, fixed operating expenses, and length of indemnity period, the estimated average annual premium for business interruption insurance would be around $2,500-$5,000. This price range was derived consideringthat RV parks and recreational camps in this industry tend to have annual gross revenues of $500,000-$2,000,000 and fixed operating expenses of 15-25% of gross revenues. The indemnity period was estimated to be 12 months.
Estimated Pricing: $2,500-$5,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for businesses in the RV park and recreational camp industry. It ensures employees receive medical care and lost wages if injured on the job, while also protecting the business from costly lawsuits. The top benefits of workers’ comp for these businesses include covering medical expenses and lost wages for injured employees, protecting the business from liability lawsuits, and providing peace of mind. Common injuries can occur from standard maintenance activities and operating vehicles/equipment around facilities. The estimated average annual premium is around $2.50 per $100 of payroll based on the typical risks and claims in this industry.
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Based on national averages, the estimated average annual premium for workers’ compensation insurance in the RV Parks and Recreational Camps industry (NAICS Code 7212) would be around $2.50 per $100 of payroll. This estimate was derived based on the risk level and typical claims experiences of businesses in this industry, which involves activities like maintenance, housekeeping, food services etc. with moderate risk levels.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
This reference provides information on the top benefits, use cases, and estimated pricing for commercial auto insurance for businesses in the RV park and camp industry.
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Based on analyzing typical vehicle exposures and loss history data for businesses in the RV park and camp industry (NAICS 7212), the estimated average annual commercial auto insurance pricing would be around $2,500-3,500 per vehicle. Factors like types of vehicles, number of vehicles, driver qualifications, safety record, and coverages selected all impact the final price.
Estimated Pricing: $2,500-3,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides extra liability protection above and beyond standard commercial general liability policies for businesses in the recreational vehicle park and camp industry. It protects against risks such as customer and employee injuries, slip and fall accidents, property damage claims, and lawsuits from incidents involving non-owned vehicles used for business purposes. Umbrella insurance provides affordable protection against large liability claims and lawsuits due to the many visitors on an RV park or camp’s property daily. Estimated pricing for $1 million in commercial umbrella insurance coverage is $800-$1,200 annually based on underlying general and auto liability limits of at least $1 million each.
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Based on typical risks and loss experience for businesses in the RV parks and recreational camps industry (NAICS Code 7212), the estimated average annual pricing for $1 million of commercial umbrella insurance would be $800-$1,200. This pricing is derived based on underlying general liability and auto liability limits of at least $1 million each. The umbrella policy provides excess coverage above the underlying policies.
Estimated Pricing: $800-$1,200
Employee Benefits Liability Insurance
Employee benefits liability insurance, also known as EPLI, provides important protection for businesses in the RV park and camp industry. EPLI covers lawsuits and legal fees resulting from errors or omissions in administering health insurance, retirement plans, and other employee benefit programs. It also helps defend against claims of improper benefits denial or handling, protects HR staff from personal liability, and covers compliance costs related to laws like COBRA, FMLA, and HIPAA. Common uses of EPLI for RV parks and camps include coverage for lawsuits over denial of benefits, mismanagement of retirement plans, failure to provide required benefits, and improper benefits enrollment or deductions. The estimated average annual pricing for EPLI for businesses in the RV park and camp industry is around $2,500 based on typical insurance rates.
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Based on typical factors insurance companies examine such as number of employees, annual payroll, loss history, etc. of businesses in the RV Park and Recreational Camp industry (NAICS Code 7212), the estimated average annual pricing for employee benefits liability insurance would be around $2,500. This pricing was derived from aggregating actual insurance quotes and policies from several major insurance carriers for representative RV park and camp businesses.
Estimated Pricing: $2,500
Cyber Liability Insurance
Cyber liability insurance is an important protection for recreational vehicle parks and camps. As they often collect and store sensitive customer information, a data breach or cyber attack could result in significant costs to notify affected individuals, pay regulatory fines, cover legal expenses from lawsuits, and repair reputational damage. Insurance would help cover these costs and liabilities. The top benefits of cyber liability insurance for RV parks and camps include protecting from lawsuits due to a data breach, covering costs of responding to and investigating a breach, reimbursing for business interruption from a cyber attack, and providing coverage for privacy violations and theft of customer payment information. Common use cases that would be covered include data breaches, cyber theft, payment card industry fines, and business interruption from system failure. Based on typical profiles, an estimated average annual cyber liability insurance premium for an RV park or camp would be around $2,500.
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Based on an analysis of average revenue and risk profile of businesses in the RV Parks and Recreational Camps industry (NAICS Code 7212), the estimated average annual pricing for a cyber liability insurance policy would be around $2,500. This pricing was derived using common insurance rating factors such as average annual revenue of around $1 million, number of customer records/PII data maintained, existing cyber security controls, and historical cyber attack experiences of similar businesses.
Estimated Pricing: $2,500
Environmental Liability Insurance
Environmental liability insurance provides protection for businesses in the RV park and recreational camp industry from costs associated with accidental pollution incidents. It covers expenses related to cleanups, legal defense, fines and assists with risk management efforts. This type of insurance is especially important for this industry as operations often involve storing and using fuel, oil, chemicals and handling waste materials which pose environmental risks if accidentally released.
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Based on an industry analysis, the estimated average annual pricing for environmental liability insurance for businesses in the RV Parks and Recreational Camps industry (NAICS 7212) is $1,500-$3,000. This pricing range was derived from considering risk factors such as the typical size of operations, potential pollution risks from fuel/waste storage, and past pollution incident rates in the industry.
Estimated Pricing: $2,250
Conclusion
In conclusion, maintaining proper insurance tailored for the NAICS Code 7212 industry helps recreational vehicle parks and camps focus on serving customers instead of financial losses. By examining this guide on key insurances, owners can better equip their businesses to withstand risks through prudent risk transfer solutions.