Holiday Parks Need Business Safety Net
According to statistics gathered by business insurance specialist, Lorica Insurance Brokers, 50 per cent of holiday parks do not purchase ‘business interruption’ insurance.
Hostages to the fortunes of the impact of severe weather, many holiday parks are gambling with their future security.
“There is a distinct lack of awareness over the extent of cover available,” advises Lorica’s director of holiday parks, Peter Heffer.
He adds: “Many think that it is either unnecessary or is purely there to provide cover for a loss of gross profit following loss or damage.”
However, this form of cover is inappropriate for the park industry, advises Heffer. “When structured correctly, cover actually provides for loss of gross revenue less any costs the park no longer incurs during any period of downtime resulting from a loss.
“By insuring in this way, the park has access to funds that allow it to continue to meet its fixed costs obligations despite a lack of incoming revenue.”
Lorica advises that cover should also apply to alternative accommodation expenses along with additional expenditure incurred to maintain the business such as overtime, temporary rental on other parks and advertising.
“Fit for purpose cover is an absolute asset to a park,” says Peter. “It is there to maintain profit levels, meet ongoing fixed costs, provide alternative accommodation and assist with recovery.”
He advises: “Park operators are urged to speak to an insurance advisor who understands the sector and is able to offer a tailored solution. Off the shelf commercial policies are unlikely to meet your needs.”
Lorica Insurance Brokers Tel. +44 (0)7827 895671 Email. email@example.com www.loricainsurance.com