Using governmental permits for land and property present unique challenges for concessionaires, especially when something happens and an insurance claim needs to be filed. Whether it’s an uninsured claim, a compliance difficulty, or claim in need of further support, here’s some of the most common complexity concessionaires face.
As a concessionaire, the government requires you to carry certain types of insurance to protect both your interests. The most common types of insurance requirements are as follows:
- Property Insurance. Property is not just an asset, it can be a liability as well. It’s becoming increasingly common for the government to require their concessionaires to purchase property insurance, including policies dealing with wildfires.
- Liability Insurance. With a business focused on tourism, the significant amount of public access and traffic makes liability insurance absolutely necessary. The more people that come, the greater chance for an accident, and the government owner needs to know they’re protected.
Paying for these insurance policies can be challenging, as many operators, like national parks, are not in control of raising their own prices. This is where the mitigation techniques we’ve discussed in previous blogs help keep the cost down or help the government decide property insurance, in particular, may not be a necessity.
The insurance industry is constantly changing, and as new threats and liabilities arise every year, contracts and policies often get outdated quickly. A contract established in 2023 is going to be vastly different from one from 1975, but with different lengths, terms, and extensions, a host of compliance issues can arise for concessionaires.
A good insurance service can help you navigate these complexities by:
- Reviews. We can review the contracts to identify out of date policies or standards that are now impossible to comply with. We present these problematic pieces to the concessionaires as possible points to move forward in their contract with the agency.
- Correspondence. We can write a letter to the insurance provider identifying the problems we found in the review, as well as go over the issues with the concessionaires to try and address and fix as many of the problems as possible. This shows a good faith effort to the insurance agency.
- Advocacy. Once correspondence is established, we can advocate for the concessionaire, showing a good faith effort to resolve any problems, pointing out the compliance issues due to out of date policies, and press the insurer to handle any potential problems on their end.
Many times when a claim arises, a concessionaire is just handed off to an insurance agent and is put at their whim and mercy to get what they need. The result almost always favors the insurance agency over the concessionaire.
Interwest Insurance Services has claim experts that can help you navigate this process and advocate for your benefit, so you get the recompense you’ve paid for and deserve. We’re available 24/7 and are by your side so you don’t have to go through this difficult, stressful process alone.
To get additional insight on how outdoor recreation operators can support your insurance needs, contact Interwest Insurance Services.