14 - November 2017 Woodall’s Campground Management Ron Norton, vice president of Fort Wayne, Ind.-based K&K Insurance, said that insurance is something that no one likes, but then disaster strikes and everyone loves it. “In a disaster you want to have things lined up and a plan in place so that there is no scrambling,” he said. “With insurance you have to balance saving money and having peace of mind knowing your business is well protected.” Tolli said that one of the first things own- ers need to look at is whether they have their buildings/structures fully covered if an accident or disaster does occur. He said that often owners will go years without updating their coverages or taking a look at the valuation of their buildings. Many policies have a coinsurance clause, meaning if a disaster does strike and an owner is found to have an insured value of less than a certain percentage, typically 80%-100% depending on the policy, of the replacement value of a building, then they may be subject to a penalty. That means owners could be out money while they are attempting to recover from a disaster or emergency. “Most don’t change their coverages regularly,” said Tolli. “Some policies adjust for inflation, but many do not. One of our carriers suggests replacement cost values of $140 per-square-foot or more for most typical campground structures, other than open pavilions, cabins and maintenance buildings. That varies depending on location and fit-and-finish, but if you’re an owner and have your buildings insured at $100 per-square-foot or less then there’s probably a good chance you may be underinsured and we suggest re-evaluating them with your agent.” Owners should also be looking into loss of income insurance that covers income lost if a disaster hits and your business is shut down for a length of time. This can also cover campgrounds that are forced by civil authorities to evacuate or access to the insured property is blocked due to a possible threat or disaster, such as for fire, windstorm or another covered cause of loss. Business income coverage will help owners recoup the loss of income while they were shut down from a covered peril. It’s important to note that flooding, earth- quake and landslide damage, among others, are not covered under standard commercial property insurance policies and you would need to obtain separate coverage for those risks and any loss of income associated with damage from those risks. Interruption from civil authorities must also be related to a covered peril in order to be triggered. Norton said that many policies will not cover the loss of income if the evacuation is more than a mile away from the threat. “We have started marketing a 10-mile radius,” he said. “The coverage is really to help owners pay expenses that continue, as well as loss of income, even though they can’t open their business. The important thing to remember, though, is that business income coverage pays continuing expenses and profits you would have expected to receive had your business not been interrupted.” Tolli said that evacuations are difficult for adjusters to deal with since they have to pour over historical date to see how much an owner may be entitled to. Typically, there is a three-day waiting period before Loss of Income insurance kicks in for cov- ered interruption by government authorities. “Really these policies are built to help an owner who sees their campground suffer a direct hit from a natural disaster and they are shut down for significant periods of time,” he said. Debris removal is another hot topic any- time a natural disaster occurs. Filled with trees, campgrounds are very susceptible to high cleanup costs anytime a high wind event occurs. Tree removal isn’t cheap and if you have dozens of trees that need removal, costs can begin to skyrocket. Norton said that for the most part debris removal is not going to be covered by an insurance policy unless it is lying on top of an insured building. “There is a misnomer that insurance policies cover debris removal, but that isn’t true,” he said. “There are some policies that will give $5,000 for tree debris removal, but when you are talking about removing a lot of trees that money won’t get you very far.” Tolli said some policies will cover debris removal, but that they may have a condition or limitation that exempts debris caused by high wind. “You have to look at how much you can afford and realize that not everything is going to be covered,” he said. Some policies in certain markets may exclude damage caused by wind or hail, but there may be sepa- rate policies you can buy to cover just the wind and hail expo- sure. Tolli said the same goes with flood and earthquake in- surance, but that Leavitt always en- courages its policy holders to consider coverage for both. The most important thing for owners is that they continually communicate with their agent to cover their business the best that they can. “At K&K we work with insurance compa- nies and we work with local agents to help our clients cover all the bases,” said Norton. “There isn’t a standard form we use and we don’t want our clients in a situation where they may not be covered. We may not be the cheapest all the time, but we are working to make sure our clients get the insurance they need at a competitive price.” Tolli said that while every policy has its limitation, conditions and exclusions, own- ers who understand their coverages before disaster hits will be better prepared to make a strong recovery. “If you evaluate your exposures periodi- cally,andconsiderinsuredvaluesandcover- age options, you can put yourself in a better position to weather any storm that may come your way,” he said. — Ben Quiggle WCM The past few months have been filled with news stories of natural disasters. From hurricanes to wildfires, we have all seen the images of campgrounds underwater, trees toppled on buildings and massive wildfires burning thousands of acres of forests. The National Oceanic and Atmospheric Administration (NOAA) hasn’t calculated the costs from hurricanes Harvey, Irma and Maria, but an outside disaster risk company estimates the U.S. damage from the three hurricanes to be about $150 billion. The remaining disasters so far this year have cost more than $21.7 billion and killed 282 people, according to the NOAA. That doesn’t take in the current impact of wildfires in California that have burned thou- sands of acres, homes and businesses. Many campground owners affected by the storms are taking a look at something they may not have thought much about beforehand: their insurance policy. Even if you are a campground owner that was not impacted by these natural disasters, these types of events still make you think about the investments you have made in your own campground and the protections you have in place if disaster strikes. Bryan Tolli, insurance producer at Stur- gis, S.D.-based Leavitt Recreation & Hospi- tality Insurance, said that insurance isn’t one of the most exciting topics to talk about for most peo- ple, but that it is a necessary part of operatingabusiness. “It is something that a policyholder may let slide, maybe they don’t pay as much attention to it other than the cost,” he said. “The expense is the biggest factor for most and no one enjoys paying for insurance, especially if they’ve been fortunate enough to never have had to use it. It is typically one of the biggest expenses that a business owner has. But if park owners takes the time to talk with their agents and assess what coverages they need and want to purchase, then they will be in a much better position if disaster does strike.” You May Not Be Able to Avoid Disasters — But Having Proper Insurance Coverage Helps Rebuild Bryan Tolli RonNorton Insurance isn’t the most exciting topic to talk about, but experts say to protect their businesses campground owners need to keep current on their coverages. Campgrounds, that are located by water, filled with trees and in unique locations, often feel the brunt of a natural disaster.