park protect scheme

BEWARE THE SLIPS AND TRIPS

Posted on February 16, 2022

BEWARE THE SLIPS AND TRIPS

All you need to know about holiday park insurance…

 

WINTER IS TRADITIONALLY the time to check if your park and all its assets are properly protected against any eventuality.

 

As a holiday and caravan park owner or manager, the quieter winter season is often used as an opportunity to run annual maintenance checks and undertake refurbishment to interiors and exteriors where needed.
This is also a time when it is important to make sure that your park and all its assets are properly protected against any eventuality.
“Holiday park insurance can help you to identify what your park insurance needs are, and to make certain that these are provided for with a cost-effective policy,” says Dave Moffat, Director of Pib Group Insurance, the company behind the popular Park Protect scheme.
Whilst holiday parks present similar risk to many businesses there are significant differences. Holiday parks rely on the infrastructure on the park in the form of underground pipes and hook ups, access barriers, on site lighting etc and it is important that your insurance policy can cater for this.
“Many holiday parks will also have holiday home hire feet and holiday home stock,” advises Dave. “As such it is important that a parks insurance policy is able to cater for such units and also the debris removal and re-siting costs associated with replacing holiday homes. ”These are just two of many areas to consider when insuring holiday parks and it is important that your needs are professionally assessed.

 

 

REVENUE LOSS
In addition to recouping the actual financial cost of rebuilding or buying new holiday homes and buildings, it makes financial sense to obtain insurance which will provide you with a cover for the loss of revenue or profit incurred following a material loss.
It is important that you seek professional advice in this area to make sure the sum insured and indemnity period are sufficient for your business needs and the period your business could be affected following a serious loss, such as a fire or flood.
Pib offers common sense advice: “Having members of the public stay in your caravans and spend time in your park on a daily basis also exposes you to other financial risks.
“We live in an increasingly compensation-based culture, in which some people are willing to sue for the smallest things. Though some compensation claims may be for fatuous reasons, there are also very real risks within any holiday park that could result in injury or loss.”
One indemnity limit area holiday parks do need to consider is the limit of indemnity under this cover as the levels of very serious losses has increased exponentially in recent years and claims well in excess of £5m are no longer unusual. Crucially the limit of indemnity is set at the time of the incident but the ultimate settlement amount can fluctuate depending on the calculators used for such claims at the time of settlement. It is not possible to buy additional cover after the event and if your limit of indemnity is exhausted you would be responsible for the shortfall.
All businesses with employees are required to have Employers Liability Insurance arrangements, which usually has a £10,000,000 limit of indemnity. As with Public Liability, all Holiday Parks should consider higher limits of indemnity as it is no longer inconceivable that a very serious injury to an employee could exhaust this cover. The cost of arranging such Excess Liability cover is relatively small and should be discussed with a specialist Insurance provider.

 

Each holiday park will have different insurance needs, depending on size and a variety of other factors. A large-scale park with hundreds of caravans will have different policy requirements to that of a smaller family run park.
Insuring more than 200 caravan and holiday parks across the UK, Park Protect provides tailor-made insurance for the specific needs of your business.
Meanwhile, with all the signs pointing towards another bumper year for the industry what do Holiday Parks need to think about in relation to Insurance.
Compass Insurance have consistently raised awareness about the importance of being insured for the right amount, whether that’s parks themselves or their owners and their individual caravans and lodges. As the costs of rebuilding and replacing park buildings and in particular, caravans and lodges increases, this places more emphasis on sums insured being accurate.
For Parks this means making sure that any buildings and infrastructure insured on their policy is accurate and in some cases a valuation or survey is a good idea especially if you haven’t reviewed this for a few years.
Analysis at the end of 2021 showed that the cost of rebuilding and repairing damaged buildings had increased 7.9% in the last 12 months and forecasts show this continuing to increase as shortages of materials and labour continue into 2022. With that in mind we’re introducing a valuation service for parks insured with Compass so they can have the peace of mind that comes with a professional valuation for their sums insured.
For the owners of individual caravans on your park this can have greater significance as the current issues with supply of new and second-hand units means that what a customer insured for in good faith just six months ago may already be less than the cost of replacing that unit in today’s market.

 

 

IN GOOD FAITH
Compass always look at what the customer insured for at the point the policy was taken out or renewed and base our assessment of any claim on that value. In 2022 our policies will also be updated to contain a provision for this growing trend so that customers don’t find themselves underinsured for no fault of their own.
Compass are renowned for our market leading Holiday Caravan and Lodge product but in 2021 they invested time and resource in developing and launching more products that parks and their customers can benefit from.
Its Residential Park Home product underwent a major overhaul including the introduction of two tiers of cover (Essentials and Extra) which enable the customer to tailor it to meet their needs, as well as the addition of Home Emergency and Legal Expenses as optional covers.

 

 

TRAVEL INSURANCE
They have also developed and launched products for owners of Touring Caravans and Motorhomes both of which give market leading levels of cover at very competitive premiums.
Finally, and new for 2022, Compass is excited to be announcing the launch of its travel insurance product for customers who book breaks on Holiday Parks in the UK.
This product has been developed specifically to meet the growing demand for UK holidays and gives the customer a wide range of cover including cancellation, curtailment and emergency assistance and also includes cover for Covid19 related illness or restrictions.

Caravan Guard (Leisuredays)
Tel. 01422 396 693
Email. park-operator@leisuredays.co.uk
www.leisuredays.co.uk

Compass Insurance
Tel. 0344 274 3908
Email. enquiries@compass.co.uk
www.compassparks.co.uk

Pib Group (Park Protect)
Tel. 01422 358 525
Email. hello@pib-insurance.com
www.pib-insurance.com

BIBLICAL CHALLENGES

Posted on May 5, 2021

BIBLICAL CHALLENGES

Insurance companies respond to unprecedented times...

It has been an unprecedented period for holiday park operators with challenges of biblical proportions as they faced floods, a global plague and a stop-start famine then feast on bookings. It is a period that has also challenged insurance cover suppliers to step up for their holiday park customers. Given the extraordinary circumstances of Covid, one of the hottest insurance topics has been Business Interruption (BI) cover. Long-awaited clarity about how BI claims should be handled came with the publication of the Supreme Court judgement on 15th January 2021. Not all customers will have the specific cover the test case referred to, which means that not all customers’ policies will be expected to cover Covid. The process of assessing BI claims is a complex one, and there are steps that need to be followed in order to submit a valid claim. Specialist insurers are working with the holiday trade who had the relevant policy coverage to confirm and assess their claims as quickly as they can. Champions of the Park Protect Scheme, David Moffat, Associate Director, of PIB Insurance Brokers says: “Unfortunately the pandemic has coincided with a significant hardening of the insurance market with insurance rates for certain types of insurance increasing markedly in recent months.

PARK PROTECT
“This often happens at a time of uncertainty as it usually comes with increases in claims and the insurance market reacts accordingly,” David explains. “Insurers have seen increasing claims costs, particularly from natural disasters but also due to an increasingly litigious society,” David continues. “As insurer profitability declines, they either decide to exit unprofitable markets or increase premiums.” Meanwhile, Leisuredays have been working hard, often behind the scenes: “We worked hard to educate caravan and lodge owners that their units remained at risk during lockdown using press releases, online content and through our advisers,” says Gareth Walker, Head of Leisuredays Development. “Covid, may have meant parks were closed for long periods but the winds still blow, rivers still flood, thieves still steal and pipes still freeze,” Gareth continues. “We calculate over 90% of claims could still occur even when units are unoccupied and parks closed, with storm and flood, fire, vermin damage and theft topping the list of claim types,” says Gareth. With parks’ income drying up overnight, it was clear that specialist insurance companies needed to do whatever we could as quickly as possible to help customers through the lockdown period. Compass were quick out of the blocks, developing a tailored product, Compass Essentials, which was offered to all holiday park businesses from May 2020. The product was designed to ensure all park customers, existing and new, could be offered a discount or refund of some sort. It largely worked on the premise that parks’ insurance needs changed, as a direct result of being closed to the public. For many, this meant liability covers could be reduced without putting the park business at risk. By further eliminating less critical covers such as frozen food cover and accidental damage, many parks were able to secure immediate premium refunds of up to 25%.

HOME OWNERS
Several Compass insured parks have experienced flooding in the past six months, and a few have been very badly affected. Over half of the claims that Compass handles relate to flood and storm. One of the biggest lockdown issues for holiday home owners has been their ability to comply with insurance policy conditions. Holiday caravan owners also need to think about their sums insured as pressures on the supply chain mean that the cost of replacing caravans is likely to increase sharply, if only for the next 12 – 18 months “Coronavirus has had a significant impact on the way in which holiday caravan and lodge manufacturers can operate,” Richard Walker, of Compass points out. “Coupled with supply chain issues, this has resulted in fewer units being produced at a time when staycation bookings and new caravan/ lodge sales have boomed. “The high demand for the units that are available could potentially impact any total losses experienced by parks and their customers in the next year or so. “The fact that the dearth in available units is driving up prices may also be relevant, as will the increased costs of many of the materials used in caravan/ lodge construction,” Paula adds. Once parks re-opened, Leisuredays say they dealt with a record number of insurance enquiries as parks enjoyed healthy sales of new units.

RECORD NUMBERS

“For those suffering temporary financial difficulty as a result of Covid, we were able to defer payments or waive cancellation charges,” says Gareth. “If a customer asked to cancel their policy but was intending to keep their unit uninsured, we would do everything possible to keep them insured because the last thing they needed on top of everything else was an uncovered bill for a caravan repair or replacement. The closing of parks at the end of October also brought difficulties for customers to drain down their units for winter in line with insurance policy terms. “We were able to offer flexibility for customers to arrange for their parks to drain down within an extended timeframe yet maintain full cover until this was completed,” he adds. Leisuredays set about making it even easier for park customers by offering a new online renewal portal so they could renew 24/7. Gareth explains: “To ease any stress, we provided an up to 10% uplift to policy sum insured at no charge. “This was beneficial to customers on a new for old policy who have to insure at the price of a brand-new equivalent unit.” In effect, the Leisuredays approach meant the customer could renew and be sure their caravan would be fully replaced with a new one on the park – it also reassured the parks that the customer would have sufficient funds to replace their unit via them.

SUFFICIENT FUNDS
“If anything, our way of working with parks has worked extremely well during the pandemic,” Gareth emphasises. “Because our parks work with us as Introducer Appointed Representatives they effectively introduce the customer to us for us to quote, then setup and administrate policies. “When parks re-opened in July 2020, many parks were keen to maximise sales so they bundled our free insurance offer with new units as a deal sweetener. “This proved extremely popular for new owners who wanted everything to be provided as part of the purchase package.” Gareth believes Covid has made self- administration of customer insurance even less attractive for holiday park operators. “We’re even more confident the route of introducing to a specialist like ourselves delivers better results,” says Gareth. “Letting a specialist such as Leisuredays do the insurance admin lets them concentrate on their core business. Gareth adds: “We firmly believe they’re in for a bumper season of demand for holiday caravan sales and holidays so they need to make hay whilst the sun shines in that regard – why let insurance get in the way?”

COMPANY CONTACTS

Compass Insurance
Tel. 0344 274 0276
enquiries@compass.co.uk
www.compassparks.co.uk

Leisuredays Insurance
Tel. 01422 396 693
parkoperator@leisuredays.co.uk
www.leisuredays.co.uk

PIB Insurance Brokers
Tel. 01422 358 525
david.moffat@pib-insurance.com
www.pib-insurance.com/business/hospitality/caravan-and-holiday-park-insurance