Campground General Liability
Understanding When A Claim Is Denied
In our previous post, we discussed property insurance for campgrounds. Today, we take a look at one of the fundamental insurance coverages for campgrounds - general liability insurance.
General liability insurance protects the campground for claims alleging bodily injury or property damage to others for which they are legally liable.
That sentence says a lot.
First, general liability insurance protects you from claims alleging bodily injury or damage to property of others. Sometimes when clients reports a claim to their insurance agent or company, they express concern that that claim is groundless. They feel that they did nothing wrong. If the insurance company also believes that you are not negligent, the insurance company will deny the claim. But then, sometimes the campground owner panics, thinking that their insurance company just abandoned them!
If there was no negligence on your part, you have no liability. So the insurance company isn’t going to pay a claim unless there was negligence. By denying the claim, they shift the burden back to the other party to prove that you were negligent. If you are sued by someone claiming your were negligent and they suffered bodily injury or property damage, your insurance company will still defend you (and ultimately pay any judgements up to the policy limits).
If A Claim Is Denied, Will My Insurance Company Still Defend Me?
Even if the claim is groundless, the insurance company will still defend you. The insurance company pays all of the legal expenses to defend you from a groundless lawsuit, unless, of course, the lawsuit is alleging you committed an act excluded by the policy. All policies contain exclusions so you should read your policy carefully.
What Should I Look for When Buying Campground Liability Insurance?
You do not want an insurance company paying groundless claims because it hurts your reputation and it will drive up insurance costs. That is why we recommend purchasing your general liability insurance from insurance companies that have experience dealing with claims against campgrounds.
Because bad things can happen, not only do you want a reputable insurance company but you also need adequate limits of insurance. It is also important that defense costs are in addition to the policy limits. An experienced campground insurance agent will be able to discuss your options.