After enduring crushing premium spikes between 2023 and 2024, many outdoor hospitality operators finally saw relief last year as commercial insurance rates softened. But the honeymoon may be short-lived.
Between unseasoned insurance carriers entering the market blind and the relentless pace of social and economic inflation, operators who aren’t actively mitigating risk could soon find themselves priced out or dropped entirely. With personal injury claims rising and property replacement costs skyrocketing, the outdoor hospitality sector must shift from simply buying coverage to aggressively defending its risk profile.
“That’s a red flag for all of you guys,” James Grant, president and CEO of Signature Risk Partners Inc., cautioned during the September 16 episode of MC Fireside Chats. Grant warned that new insurance providers, lured by excess capital in the market, often lack a fundamental understanding of outdoor hospitality risks. “It’s easy to get lured in by a discounted offer on your insurance renewal, only to find out a year from now that the people that put the money up just have decided they don’t like that space, and they’re leaving, and you gotta go somewhere else,” he explained.
Robert Preston, CEO and founder of Unhitched RV and Climb Capital, noted that understanding a property’s loss history is the first step in protecting portfolio margins during an acquisition.
“We look at those loss runs and see what’s on there. We look at the P&L and see what their insurance premiums have been,” Preston said. He emphasized that infrastructure risks—particularly private utilities—can break a deal. A property reliant on private well water, for instance, poses an immense scope of liability if an outbreak occurs, with Preston noting that one such property faced premiums as high as $600,000 to $700,000 after repeated water quality issues.
The pressures on commercial insurance aren’t just anecdotal. The Insurance Information Institute has repeatedly cited “social inflation“—a trend of increasingly large jury awards and aggressive personal injury litigation—as a primary driver pushing commercial liability claims above general economic inflation.
Kampgrounds of America‘s (KOA) Camping & Outdoor Hospitality Report shows nearly one-in-four leisure travelers now consider themselves campers — and that influx of newer, less experienced guests creates liability exposure that operators can’t afford to ignore.
Finally, as construction materials and labor costs surge, operators must ensure their coverage keeps pace. The National Association of Insurance Commissioners (NAIC) advises business owners to regularly review property policy limits to ensure they align with inflation and rising building costs. For campground operators, the implication is clear: failing to update commercial property limits to reflect current replacement costs can leave a business dangerously underinsured in the event of a total loss.
To combat these rising pressures, operators must tighten their internal operations. One of the simplest yet most overlooked tools is a comprehensive, signed waiver for every individual on the property—not just the primary person booking the reservation.
“The first question that a personal injury lawyer asks anytime the phone rings… is, ‘Did you sign a waiver?’” Grant explained. “If the answer is yes, they’re gonna think twice about even taking the case on”.
Additionally, underwriters are now auditing parks from afar, meaning a property’s digital footprint can trigger a rate increase or denial. Peter Lovering, business development specialist at Signature Risk Partners Inc., pointed out that operators often unknowingly sabotage their own coverage by posting marketing photos of guests engaging in risky behavior, such as driving golf carts with alcohol or using inflatable water parks without life jackets.
Ultimately, operators should conduct third-party safety audits, thoroughly review policy exclusions with an industry-specific broker, and ensure all marketing materials reflect strictly enforced safety standards.
The full episode of this MC Fireside Chats broadcast is available at https://moderncampground.com/fireside-chats/mc-fireside-chats-september-16th-2026/.
About MC Fireside Chats
MC Fireside Chats is a live podcast experience dedicated to the outdoor hospitality and outdoor recreation industries. Hosted by Brian Searl, founder and CEO of Insider Perks and Modern Campground, the show offers engaging discussions with industry leaders, innovators, and experts shaping the future of camping, RVing, glamping, and outdoor recreation.
Airing every Wednesday at 2 p.m. (ET), the show follows a structured weekly theme to deliver deep dives into the most relevant topics:
- Week 1: Industry Trends & Insights
- Week 2: Enhancing Guest Experience
- Week 3: Business Operations & Management
- Week 4: Marketing, AI, and Technology
Each episode features a panel of recurring guests, complemented by 1–2 rotating special guests, including industry analysts, campground owners, technology providers, sustainability advocates, and more. Whether exploring the latest market trends or innovative guest experience strategies, MC Fireside Chats delivers thought-provoking insights for professionals and enthusiasts across the outdoor recreation spectrum.
To explore previous episodes of MC Fireside Chats, visit: moderncampground.com/mc-fireside-chats.
