Earthquake Insurance: Is Your Resort Prepared for the Unexpected?
Hot spring resorts offer serene experiences for guests—but beneath the surface lies a very real, often overlooked risk: earthquakes. Many resort owners assume their property insurance covers them in the event of a quake. The truth? Most don’t.
Let’s break down what’s at stake—and how to protect your operations, your guests, and your peace of mind.
The Quiet Threat Beneath Your Resort
If you operate in a geologically active area (and many hot spring resorts do), seismic activity isn’t just a hypothetical. It’s a real operational threat. In 2012, an earthquake in Haida Gwaii, British Columbia, caused hot springs to stop flowing for over 10 weeks. That meant closed facilities, no guests, and major financial losses.
Unfortunately, standard commercial property policies exclude earthquake damage. Without the right coverage in place, owners are often left with massive repair costs, business interruption losses, and no easy way to bounce back.
What Standard Coverage Doesn’t Tell You
Earthquake insurance is not automatically included in most property policies. You must secure a separate policy or endorsement — ideally, one designed with your kind of operation in mind.
Even when coverage is in place, it often comes with:
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High deductibles, ranging from 10% to 20% of the coverage limit
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Exclusions for land movement or flooding
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Slow payout processes that delay recovery
This can leave resort owners feeling stuck when they need help most.
A Smarter Way to Protect Your Business
The good news? Specialized insurance programs and parametric policies exist to help resorts like yours recover faster and more confidently.
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Parametric earthquake insurance offers payouts based on predefined seismic triggers (e.g., earthquake magnitude), not damage assessments. That means faster funding and quicker action.
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Tailored programs for spa and resort operators address industry-specific vulnerabilities — from natural spring flow interruptions to specialized equipment damage.
At Granite Insurance, we don’t believe in one-size-fits-all coverage. We work with resort owners to develop a proactive insurance strategy that empowers business continuity — even after the unexpected.
What’s Your Next Step?
You’ve built something special. Protect it.
✅ Step 1: Review your current property policy. Does it cover earthquake damage?
✅ Step 2: Explore specialized and parametric options that align with your unique risks.
✅ Step 3: Partner with a team who understands the spa and resort industry inside and out.
We’re Here to Help
At Granite Insurance, we believe in empowering business owners to be prepared — not just for today’s risks, but for what comes next. Whether you’re seeking to evaluate your current coverage or explore more responsive options, our team is here to help.
Reach out directly to Nathaniel Johnson
| 828-212-4553
