The recent shifts in the outdoor industry have prompted many skilled outdoor guides to explore starting their own adventure travel and tour businesses. While passion and expertise are essential, navigating the business-side, especially insurance and risk management, is crucial for long-term success.
Key Insurance Coverages for Outdoor Guide Businesses
1. General Liability Insurance
This foundational policy protects your business against claims of bodily injury or property damage to others due to your negligence. For outdoor guides, it’s essential your policy covers participant injuries & extends coverage to guides in your employ.
2. Professional Liability (Errors & Omissions) Insurance
If your services include the booking of travel, lodging, dining, or other accommodations; you will want to protect yourself in the event you forget or incorrectly book services for your clients, leading to their financial loss. If you provide instruction or certification for activities, you will also want this coverage.
3. Commercial Auto Insurance
If your business transports clients in company-owned or personal vehicles, or if you use these vehicles in any way related to or to further the business, you need commercial auto coverage. Personal auto policies often exclude business-related travel.
4. Inland Marine Insurance
Outdoor guides often use expensive equipment—kayaks, mountain bikes, safety gear, etc. Inland marine insurance covers damage or loss of business property while in transit or use.
5. Workers’ Compensation Insurance
If you hire employees or subcontractors, most states require workers’ compensation coverage. This protects guides in case of work-related injuries.
6. Accident Insurance
Outdoor recreation can involve risks beyond your control. Having accident coverage for your participants can potentially cover medical expenses that are incurred if a guest is injured while participating in your activities, regardless of any fault.
7. Other Coverages
Cyber Liability, Employment Practices Liability, Directors and Officers and Excess Liability may also be needed depending on your business size & structure and should be discussed with a trusted advisor.
Essential Risk Management Documents
1. Participant Waivers & Release of Liability
A well-drafted waiver outlines the inherent risks of the activity and serves as the first line of defense for your business. It should be tailored to your specific activities and comply with state laws. We recommend contacting legal counsel that specializes in the outdoor recreation industry for best practices.
2. Emergency Action Plans (EAPs)
Every guide should have a documented response plan for injuries, severe weather, lost clients, and other emergencies. These should be regularly reviewed and practiced.
4. Guide Training & Certification Records
Keeping detailed records of guide certifications, first aid training, and continuing education ensures compliance and enhances credibility.
5. Standard Operating Procedures (SOPs)
Develop clear guidelines for risk assessment, equipment checks, client briefings, and trip execution. Consistency in procedures reduces risks and improves client experience.
Building Your Insurance Program
1. Work with A Trusted Advisor
The outdoor industry is a niche & specialized marketplace, even more so for insurance. It is in your favor to work with a broker that is familiar with the unique risks and needs your business will face and that has access & relationships with the carriers that best fit your business.
2. Prepare Documents
Getting a head start on the above-mentioned risk management documents and a detailed resume or summary of past experience will help expedite the process.
3. Be Patient/Give Yourself Enough Time
Securing the appropriate coverage for your business takes time for outdoor recreation operations. Be sure to begin having a conversation with a broker at least 2-3 months before you plan to operate or seek permits.
Final Thoughts
Transitioning to an independent outdoor business owner presents new challenges, but proper risk management and insurance coverage will set you up for success. Consulting with an insurance expert who specializes in outdoor adventure businesses is a great first step.
Need guidance on structuring your insurance program? Let’s connect and ensure your business is protected from day one!
