Buying insurance for businesses that do what many others wouldn’t even dream of raises a lot of important questions:
What should be covered? What questions do I need to ask? What kinds of coverage are available?
Whether you’re building new trails or restoring existing trails, your work carries a unique blend of physical, legal, and environmental risks. The good news? The right insurance program can keep your business protected and positioned for growth.
Before we dive into this, let’s define some key terms to make sure we’re on the same page:
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Premium – Typically expressed on an annual basis, this is the amount you pay for your insurance coverage.
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Deductible – The amount you pay out of pocket for a claim before your insurance coverage kicks in. For example, if you have a $20,000 claim and a $5,000 deductible, you pay the first $5,000, and your insurance carrier covers the remaining $15,000.
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Rating Basis – The primary metric an insurance carrier uses to calculate your premium. For one policy it might be your gross annual sales, for another it might be your annual payroll.
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Agent/Broker – Your agent represents you in conversations with carriers, helps match you with the right insurance company, and oversees the management of your policies.
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Carrier/Insurance Company – The Carrier is the one writing your policy, saying what risks they can/can’t accept, and determining your premiums.
Now that we’re on the same page, here are some of the core coverages every trail builder should consider:
1. General Liability Insurance
Your first line of defense. This covers third-party bodily injury or property damage related to your operations. For example, if a hiker is injured near your project site and claims you failed to mark the area properly, this policy can cover legal costs and damages. If you include a deductible, it may reduce your premium, but you’ll be responsible for smaller claims. This rating basis is typically either gross sales or payrolls.
2. Workers’ Compensation
Whether your team is made up of full-time employees or subcontracted help, injuries on the job are a real risk. Workers’ comp ensures medical costs and wage replacement are covered – and in many states, it’s required even for 1099 contractors. The rating basis for this is payroll.
3. Inland Marine Insurance
Also known as Equipment Coverage, this protects your valuable tools and machinery, whether they’re in use, in storage, or on the move. From trail dozers to hand tools, if you rely on it to do the job, it should be insured.
4. Commercial Auto Liability
Your Commercial Auto policy’s main types of coverage include liability (your liability to others for property damage or injury) and comprehensive or collision (property coverage for your own vehicles). Important to note is that you should not count on personal auto policies as they often exclude business use.
5. Excess Insurance
Adds an additional layer of protection over your existing liability policies. For instance, if your general or auto liability coverage has a $1M per-occurrence limit and you face a lawsuit that exceeds it, your excess policy can provide extra coverage. A $1M excess policy would increase your limit to $2M per occurrence – helping you manage catastrophic risks.
Other Coverages
Not all risks are obvious, so beyond what most people think about here a few more that you should have on your radar:
6. Property Insurance
If you own or lease office space, storage yards, or fabrication shops, property insurance covers the physical structure and contents against fire, theft, vandalism, and other perils. It’s especially important if you store large equipment or maintain an operations hub. Keeping close records of the contents and the value of the structure are critical – underinsurance is a common and costly oversight.
7. Professional Liability (Errors & Omissions)
Are you involved in trail design, consulting, or mapping? It’s a must-have for firms offering both construction and design under one roof.
8. Environmental Liability
Trail work often takes place near sensitive ecosystems. If your project results in contamination, erosion, or waterway disturbance, environmental liability (also called pollution liability) can protect against clean-up costs, third-party damages, and regulatory fines. Many land agencies now require this coverage in their contracts.
Final Word: Know Your Risks. Read the Fine Print.
Too many trail builders sign contracts without fully understanding the embedded insurance requirements – only to find out after a claim that they’re underinsured.
My advice? Partner with a risk advisor who knows your industry, speaks your language, and can help you build an insurance plan tailored to your operation.
At Granite Insurance, we’ve built our Trail Builders Program to support contractors like you. We’re here to help you protect your passion, your people, and your path forward. This article isn’t a complete list of all available coverages – new and evolving risks mean more specialized policies are emerging every year. I’m excited to meet you and explore how we can help you build a smarter, safer business.
