What should you check about insurance when buying a campground?

Insurance is easy to overlook on a campground visit, yet the park brings risks that most small businesses do not: guests near water, open fires, trees, playgrounds and vehicles, plus buildings and equipment spread over a large property. A buyer who understands the cover early is less likely to be surprised by a premium or a refused claim. Treat insurance as a step in diligence, not a last-minute form.

Ask for the claims history

Ask the owner for the claims record over several seasons, and what caused each claim. A pattern, such as repeated damage in one area, tells you where the risk sits. Ask the insurer or the owner’s broker for a loss run if the owner agrees. Your lawyer can tell you what the owner may be asked to share and how.

Read what the policy covers

Look at guest liability, including water, trees, fire pits, playgrounds and rental units. Look at property cover for buildings, docks and outbuildings, and whether business interruption cover suits a short season. Ask what is excluded. A policy that looks full may leave gaps around the activities the park actually offers.

Will the policy carry over?

Policies are often tied to the current owner. Ask whether the cover can be assigned, or whether you need your own from closing day. Your insurance broker can answer for your situation, and your lawyer can tell you how the purchase agreement should deal with it.

Get your own quote before you commit

Ask an insurance broker for a quote on the park, and ask your lawyer how it fits with the conditions in your offer. Ask what the insurer wants to see, and whether it will require upgrades such as fencing, fire equipment or repairs. A quote that arrives late can change your plan. Build the cost into your cash flow, as the campground financing guide suggests for fixed costs.