Caravan parks in Victoria are facing a challenging situation as they are being pressured to remove jumping pillows, a popular family attraction. The pressure comes as insurance premiums and the costs of running an RV park continue to soar.
David Pratt, president of the Victorian Caravan Parks Association, said that insurance refusal was an ongoing issue for many caravan parks. Insurers are increasingly concerned about public liability around ‘slip and trip’ incidents related to family park attractions like jumping pillows and splash parks.
Pratt, who also runs the Warburton Holiday Park in Victoria’s Yarra Ranges, described the current situation as the hardest it’s ever been to get caravan park insurance. He pointed out that many underwriters and re-insurers have exited the Australian market, and the Victorian Government has been urged to step in and help.
The situation is so dire that many caravan park operators have had to remove jumping pillows due to insurance refusal, as reported by the park.
They are faced with the tough decision of keeping the caravan park open by removing the jumping pillow, or closing it for good. Insurers have been demanding photographs of the jumping pillows both being removed and once removed.
Pratt believes that what really needs to happen is for state and federal governments to sit down with the insurance industry and discuss real law reform in ‘slip and trip’ matters.
He warns that this is just the tip of the iceberg for the entire tourism and amusement sector. The issue is causing many park operators sleepless nights, wondering if they can renew their insurance simply due to their postcode.
Despite the recent spate of natural disasters, Pratt said the caravan park industry was being unfairly treated as relatively few Victorian parks made insurance claims.
He cited last year’s devastating floods, which affected over 30% of Victorian parks and caused $45 million of damaged infrastructure. However, none of these caravan parks could even apply for flood cover, so there were no claims there.
The 2019 bushfires also saw caravan parks playing tremendous roles in providing shelter, refuge, and invaluable assistance to authorities in communicating with travelling families. Despite this, there were no property claims from that event. Therefore, the caravan park insurance crisis cannot be simply put down to fires and floods.
Unique amenities like jumping pillows can significantly improve the experiences of guests at caravan parks. They provide a fun and engaging activity for families, enhancing their overall stay. However, the current insurance-related issues are putting these amenities under threat, potentially impacting the guest experience.
The situation calls for a balanced approach that addresses the concerns of insurers while ensuring that caravan parks can continue to offer these popular attractions. It’s a complex issue that requires the involvement of various stakeholders, including park operators, the insurance industry, and government authorities.