There’s no doubt about it, insurance is complicated. The amount of jargon associated with the subject can be off-putting for many, and can make finding the right insurance product a difficult and complex process.
However, choosing the right insurance partner can be the difference between success and failure in the event of a catastrophe.
Holiday parks offer a unique blend of risk to the insurance market. By their very nature, parks are exposed to the elements, presenting an accumulation of challenges to the insurer.
According to Compass Insurance, storm damage is the highest claimed peril on holiday and caravan parks, followed by accidental damage and escape of water or burst pipes. These perils make up 50 per cent of the company’s received claim volumes. The remaining 50 per cent is made up of theft, liability, fire, impact, and subsidence claims.
“We have discovered that although the needs of individual park owners vary, there are three distinct elements of essential park insurance to consider – material damage, liability cover and financial protection,” explains Dave Sheath, managing director at Compass.
“Essential holiday park insurance should cover buildings and structures, hire fleet and sales stock, underground services, contents, loss of rent or alternative accommodation, Business Interruption, Public Liability and Employer’s Liability.”
In addition to ensuring the essential areas of cover are in place, careful consideration should always be given to the sums insured declared. By under estimating sums insured, to potentially save on premium costs, park businesses could be exposed to risks by being underinsured.
Appointed by The British Holiday & Home Parks Association (BH&HPA) to serve the interests of its members, Compass offers two bespoke policies; a Compass General policy and a Compass Park Owned policy. As well as providing essential cover, the bespoke policies also of a range of products that can be tailored to meet the needs of the park, including Contractors All Risks, Fidelity Guarantee and Employment Practices Liability, Environmental Liability and Cyber Liability.
“Operating in a changing environment will mean your business is faced with new and emerging risks,” says Dave. “With this in mind, you may want to consider new policies. It is worth considering all options available as the cost of extending cover or purchasing new risks may not be as expensive as you think.”
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