Insurance For Glamping Business: What You Need To Know

The glamping industry, an upscale alternative to traditional camping, has exploded in popularity in recent years. With travelers seeking unique, luxurious experiences in nature, glamping sites—from yurts and treehouses to geodesic domes and safari tents—are popping up worldwide. But like any business, glamping operators face unique risks and liabilities. 

Ensuring you have the right insurance is crucial for protecting your investment, your property, and your guests. Here’s everything you need to know about insurance for your glamping business.

Understanding the Risks in the Glamping Business

Running a glamping business presents different challenges than traditional lodging or outdoor camping. While you may not be dealing with massive hotels or campgrounds, you’re still responsible for ensuring a safe and enjoyable experience for your guests. The main risks associated with glamping businesses include:

1. Guest Injuries: Glamping sites are often located in remote or natural settings, which can introduce hazards such as uneven terrain, wildlife, or inclement weather. Guests may get injured while walking around the property, participating in activities, or even within the glamping units themselves.
2. Property Damage: The unique structures used in glamping—whether yurts, cabins, or luxury tents—can be expensive to build and maintain. Damage from storms, fire, or accidents can be financially devastating without proper insurance coverage.
3. Liability for Recreational Activities: Many glamping businesses offer recreational activities such as hiking, kayaking, or horseback riding. These can increase the chances of accidents and liability issues if a guest is injured while participating.
4. Environmental Risks: Natural disasters like floods, wildfires, or storms can damage your property, equipment, and structures, leaving you with costly repairs and downtime for your business.
5. Operational Risks: If your glamping site needs to close temporarily due to accidents, environmental factors, or repairs, you’ll face lost income. Business interruption can severely impact your profitability, especially during peak seasons.

Best Insurance for Glamping Business

When choosing the best insurance for a glamping business, you'll want to ensure you're covered for a variety of potential risks, including property damage, liability, and business interruption. Here are the key types of insurance you should consider:

1. General Liability Insurance

This is the most basic type of insurance that every business, including glamping operations, should have. General liability insurance covers bodily injury, property damage, and legal costs if a guest is injured on your property or if you cause damage to someone else's property. For example, if a guest slips and falls while on a hike or burns themselves at a campfire, your general liability insurance will help cover medical expenses and potential legal claims.

2. Property Insurance

Property insurance is vital for protecting your glamping structures, equipment, and other assets. This coverage includes damage to yurts, tents, cabins, or other accommodations due to events like fire, theft, vandalism, or natural disasters. Given that many glamping sites use unique and custom-built structures, repairing or replacing these can be costly, making this coverage indispensable.

3. Commercial Auto Insurance

If you provide transportation services—such as shuttling guests to and from the nearest town or airport—or use vehicles for business purposes, you will need commercial auto insurance. This coverage protects your vehicles in case of accidents, damages, or injuries that occur while conducting business.

4. Professional Liability Insurance

Also known as errors and omissions (E&O) insurance, this policy covers claims related to mistakes or failures in the services you provide. If, for example, a guest claims that their experience didn't meet the expectations set by your marketing, or if there’s an issue with a booking, professional liability insurance can help cover legal fees and settlements.

5. Workers’ Compensation Insurance

If you employ staff for cleaning, maintenance, hospitality, or guided tours, workers’ compensation insurance is legally required in many places. This coverage provides financial protection for your employees if they are injured on the job, covering medical expenses, rehabilitation costs, and lost wages. Workers’ compensation is critical in an outdoor setting where employees may be exposed to hazards such as heavy lifting, equipment use, or wildlife encounters.

6. Business Interruption Insurance

In the event of a disaster or another unforeseen circumstance, your glamping site may need to close temporarily, leading to a loss of income. Business interruption insurance helps cover lost revenue and operating expenses (like payroll and bills) while your business is unable to function. This type of insurance can be a lifesaver if your site is affected by a natural disaster or other significant event during peak season.

7. Environmental or Pollution Liability Insurance

If your glamping business is located near natural environments, you may face risks related to environmental damage or pollution. This insurance covers claims of environmental harm caused by your business operations, such as contamination of water sources or improper waste disposal. This is especially important if you’re running an eco-friendly or off-grid site that prioritizes sustainability.

8. Event Cancellation Insurance

Many glamping businesses host special events, such as weddings, corporate retreats, or festivals. If an event needs to be canceled due to unforeseen circumstances—such as bad weather, natural disasters, or illness—event cancellation insurance can help cover lost revenue and any non-refundable deposits.

Cheap Insurance for Glamping Business

Finding affordable insurance for a glamping business involves balancing cost with the coverage you need. While it’s essential to save on premiums, you don’t want to sacrifice important protections. Here are some tips to help you find cheaper insurance options:

1. Bundle Policies

• Many insurance providers offer Business Owner’s Policies (BOP) that bundle general liability, property insurance, and sometimes business interruption insurance into one policy. Bundling typically results in lower premiums compared to buying individual policies separately.

2. Increase Deductibles

• By opting for a higher deductible (the amount you pay before insurance kicks in), you can often reduce your monthly or annual premium. Just ensure you can afford the higher out-of-pocket expense if a claim arises.

3. Compare Quotes

• Use online insurance comparison tools to get quotes from multiple providers. Websites like CoverWallet, Next Insurance, and Thimble allow you to compare coverage options and prices quickly.
• Working with an independent insurance broker can also help you compare policies and find cheaper options.

4. Consider Pay-Per-Use Insurance

• Thimble and Next Insurance offer pay-per-use or short-term insurance options, which can be useful if your glamping site is only open seasonally or part-time. This can significantly lower costs if you don’t need year-round coverage.

5. Tailored Coverage

• Only pay for the coverage you need. If your glamping business has specific risks that are unlikely, ask your insurer to exclude certain coverage options or customize your policy. For example, if you don’t serve alcohol, you won’t need liquor liability coverage.

6. Work with Insurers Specializing in Small Businesses

• Hiscox and Next Insurance offer affordable policies specifically designed for small businesses, including hospitality-based businesses like glamping. These providers often have lower base rates for small business owners compared to large traditional insurers.

7. Safety and Risk Mitigation Discounts

• Some insurers offer discounts for businesses that implement risk mitigation measures, such as installing fire alarms, having clear safety protocols, or conducting employee training on emergency procedures. These steps can reduce your premium by making your business less risky to insure.

8. Buy Only Necessary Coverage

• Avoid over-insuring your business. For example, if you don’t own vehicles or transport guests, skip commercial auto insurance. Similarly, if you’re operating solo, you may not need workers' compensation insurance.

9. Home-Based Business Endorsements

• If your glamping business operates out of your personal property, you might be able to add a business endorsement to your homeowner’s insurance policy. This could be a much cheaper option for property damage and liability coverage compared to standalone business insurance.

10. Look for Industry-Specific Insurers

• Some insurance companies specialize in outdoor and hospitality businesses, offering coverage tailored to glamping or campgrounds. Providers like K&K Insurance and Campground Owners Association might have lower rates for niche businesses.

Affordable Insurance Providers for Glamping:

• Thimble: Offers flexible, on-demand insurance, ideal for seasonal or part-time glamping operations. Can be cheaper if you don't need year-round coverage.
• Next Insurance: Known for affordable general liability and business property insurance for small businesses.
• Hiscox: Specializes in hospitality insurance for small businesses and may offer lower rates with tailored coverage.
• CoverWallet: Helps you compare multiple insurance quotes, often finding the cheapest option for your specific needs.

By focusing on exactly what your business requires and using comparison tools to shop around, you should be able to find an affordable insurance policy for your glamping business.q

Factors That Impact Insurance Costs

The cost of insuring your glamping business depends on a variety of factors, including:

• Location: Sites located in areas prone to natural disasters (such as flood zones or wildfire-prone regions) may have higher insurance premiums.
• Type and Size of Structures: The size, materials, and types of accommodations (yurts vs. cabins vs. tents) can impact the cost of property insurance.
• Guest Capacity: The more guests your site can accommodate, the greater the potential for accidents or injuries, which can increase liability insurance premiums.
• Recreational Activities: Offering high-risk activities like zip-lining or horseback riding will increase the need for more comprehensive liability coverage.
• Employee Count: If you have a large team, workers’ compensation insurance costs will rise accordingly.
• Claim History: If you’ve had previous insurance claims, your premiums may be higher due to perceived risk.

Choosing the Right Insurance Provider

When looking for the right insurance provider for your glamping business, it's important to find one that understands the unique nature of your operation. Many standard business insurers may not be familiar with the specialized risks involved in glamping. Work with an insurance agent who has experience in the outdoor hospitality or tourism sector to ensure you get the right coverage.

Additionally, consider bundling multiple types of coverage (such as property, liability, and business interruption insurance) under one provider. This can often result in lower premiums and simplified management of your policies.

Tips for Reducing Insurance Costs

While insurance is a necessary expense, there are steps you can take to reduce premiums without sacrificing coverage:

• Invest in Safety Measures: Implementing strong safety protocols (such as clear signage, regular maintenance, and fire prevention measures) can reduce the likelihood of accidents and lower your premiums.
• Train Your Staff: Ensuring that all employees are properly trained on safety procedures, first aid, and risk management can prevent accidents and reduce liability.
• Use Quality Materials: Building your structures with high-quality, durable materials can lower the risk of property damage from weather or wear and tear.
• Limit High-Risk Activities: While offering adventure activities can attract guests, limiting the number of high-risk options can reduce your liability exposure and insurance costs.

Integrating Property Management Into Insurance For Glamping Business

Integrating property management with insurance for your glamping business can streamline operations, reduce risks, and improve efficiency. Property management involves maintaining and overseeing the operation of your glamping site, including accommodations, utilities, guest services, and infrastructure. 

By integrating property management strategies into your insurance planning, or using a glamping management system, you can reduce claims, protect assets, and potentially lower premiums. Here's how you can approach it:

1. Comprehensive Risk Assessment

• Work with your property management team or software to conduct regular risk assessments of your site. This includes evaluating fire risks, flooding potential, wear and tear on structures, and guest safety concerns.
• Insurers often reward businesses that actively manage risks, leading to reduced premiums or customized insurance packages.

2. Preventative Maintenance Programs

• Regular maintenance of tents, yurts, cabins, utilities, and other structures is key to minimizing property damage and liability claims. Keeping your property well-maintained can prevent accidents or costly repairs.
• Many insurance companies will offer discounts or incentives for businesses that implement documented maintenance programs.
• Consider property management software that tracks maintenance schedules, ensuring nothing is overlooked.

3. Use of Property Management Software (PMS)

• Integrating property management software (e.g., Hostfully, Guesty, or ResNexus) into your operations helps you manage reservations, guest interactions, and property upkeep.
• PMS systems can track guest check-ins, flag potential hazards, and ensure proper oversight of the property, leading to fewer incidents and smoother claims processes if something does go wrong.
• Some insurers may offer lower rates for businesses using advanced management systems that reduce operational risks.

4. Liability Risk Mitigation

• Your property management system can include safety features such as security checks, automatic notifications for maintenance, and guidelines for staff on ensuring guest safety.
• Keeping clear records of maintenance logs, safety inspections, and guest incident reports can help protect you in the event of a liability claim, reducing legal costs and claims payouts.
• Ensure your general liability insurance reflects the steps you've taken to mitigate risks through active property management.

5. Disaster Planning & Emergency Response

• A well-structured disaster plan (for events like storms, fires, or flooding) reduces downtime and mitigates damage. Property management systems should include emergency protocols for both staff and guests.
• Some insurers will offer lower premiums or business interruption coverage discounts if you have a documented emergency response plan that minimizes potential losses.

6. Integrating Workers' Compensation & Employee Safety

• If your glamping site employs staff (for cleaning, maintenance, or guest services), integrating employee management into your property management system is crucial.
• By ensuring your employees are trained in safety procedures and properly managed through PMS, you can lower workers’ compensation premiums. Fewer accidents mean fewer claims, which helps reduce long-term insurance costs.

7. Guest Incident Tracking & Reporting

• Many property management systems allow you to log guest complaints, accidents, or incidents. This helps in documenting the circumstances around any potential insurance claim (e.g., a guest injures themselves).
• Detailed logs of guest behavior, incident responses, and follow-up actions can help minimize insurance claims or assist in defending against fraudulent claims.

8. Cybersecurity & Data Protection

• If your property management system handles guest bookings, payments, and personal information, protecting that data is essential.
• Cyber liability insurance is necessary to cover breaches or cyberattacks. A secure PMS with built-in data protection can lower the risk of breaches, which might reduce cyber liability insurance premiums.

9. Business Interruption Insurance & Property Management

• In the event that your glamping business is interrupted (due to natural disaster, fire, etc.), property management systems can play a role in assessing the damage and speeding up recovery efforts.
• Business interruption insurance can cover lost income while the business is not operational, and integrating property management software ensures quick documentation and claims filing, minimizing financial losses.

10. Insurance Premium Reductions for Documented Processes

• Insurers may offer discounts for businesses that can demonstrate they have robust property management and risk mitigation systems in place. By documenting maintenance schedules, guest safety procedures, and emergency response plans, you position yourself as a low-risk client.
• Some property management systems even offer built-in compliance tracking, which can help ensure you're meeting safety and regulatory standards that insurers may require.

How to Implement This Integration:

• Choose the Right Property Management Software: Select a system that allows you to track maintenance, guest interactions, employee management, and safety protocols. Popular choices for glamping and hospitality businesses include Hostfully, Guesty, Little Hotelier, and ResNexus.
• Communicate with Your Insurer: Let your insurance provider know about your property management practices. They may be willing to offer premium reductions or customize coverage based on your proactive management approach.
• Combine Insurance and Property Management Providers: Some insurance companies work directly with property management software providers, offering packages or discounts for integrated solutions.

Benefits of Integration:

• Lower Premiums: Risk mitigation through effective property management can reduce insurance costs.
• Faster Claims Processing: Property management systems allow for more efficient documentation and tracking of claims-related incidents, speeding up the process.
• Reduced Liability: Fewer accidents, claims, and potential lawsuits can protect your bottom line.

By integrating property management strategies with your insurance coverage, you create a safer, more efficient, and ultimately more profitable glamping business.

Final Thoughts

Running a successful glamping business requires more than just a beautiful location and luxury accommodations. Protecting your business with the right insurance is crucial for mitigating risks and ensuring that you can recover from accidents, disasters, or legal claims. By investing in comprehensive coverage tailored to your unique needs, you can focus on providing unforgettable experiences for your guests without worrying about the financial fallout from unexpected events.

To learn more about how Booking Ninjas can help with your glamping business insurance, schedule a call with us right now!