The Camping and Outdoors Association is taking action to address the pressing insurance challenges faced by its members.
In response to the increasingly difficult insurance conditions faced by the campground and farm stay operators, the not-for-profit peak body has decided to create a discretionary mutual fund (DMF).
The CEO of the association, Daryl Robson, has stated that the insurance market is not accommodating and that the situation is unlikely to improve in the future, according to a report by Barron’s.
Many camping and caravan park businesses are struggling to acquire public liability insurance, with either prohibitively high premiums or overly strict policy coverage terms. To tackle this issue, the Camping and Outdoors Association has engaged KJ Risk Group to arrange the DMF program.
KJ Risk, a Sydney-based company specializing in risk management and insurance brokering services, is also working on a similar fund for the Australian Apple and Pear Association.
The Camping and Outdoors Association plans to provide AU$2.5 million for the primary layer of cover, while KJ Risk will source the excess layer of AU$17.5 million from traditional insurance providers.
The CEO, Daryl Robson, has stated that the DMF can be set up within six months, depending on the speed at which the industry gets involved.
Interest in DMFs is growing as many businesses, particularly those from the amusement, leisure, and recreation sector, are finding it difficult to acquire insurance.
In response to this, the Business Council of Co-operatives and Mutuals released its first voluntary code of conduct for operators of DMFs last December.
This follows a report by the Australian Small Business and Family Enterprise Ombudsman, which concluded that a DMF was “the only suitable solution to the critical and immediate need for risk protection in the sector.”
Without a DMF, there is a real possibility that many businesses will be unable to continue operations, as stated by the Ombudsman, Bruce Billson, in the 2021 report.
The Camping and Outdoors Association is taking proactive steps to ensure that its members can continue to provide their services and maintain the viability of their businesses.