Risk management for club and resort operations continues to grow in complexity as the scope of properties’ activities expands. But valuable resources are at managers’ fingertips, to help keep potential problems at bay.
In step with the expanding activity levels of club and resort properties, insurance concerns have progressed a long way beyond golf cart accidents and errant golf ball mishaps.
SUMMING IT UP • Insurance issues for clubs and resorts are no longer limited primarily to golf-related concerns. • New areas warranting increased attention include proper protection against cyber attacks, potential food contamination incidents, and safety for year-round outdoor adventure sports. • The growth of child- and family-related activities calls for updated policies and training, to minimize exposure and ensure safe operations. |
In addition to the eye-opening threats to facilities posed by the recent cycles of extreme weather (“Caught in the Vortex?” C&RB, February 2014), the growth of family-oriented activities and services, introduction of more elaborate amenities such as fitness centers and satellite food-and-beverage operations, and more creative use of the entire property for large-scale events have all opened the door for new potential problems, at the same time they have added to clubs’ appeal and sparked more use of all they have to offer.
Here’s just one example of a “short list” of the variety of specialty coverage types now offered, in addition to the usual property/casualty and directors and officers protection, by one insurance provider that specializes in writing policies for golf courses and country clubs:
• Earthquake & Flood
• Pesticide/Herbicide Applicators Liability
• Liquor Liability
• Pollution Liability for above-ground tanks
• Limited Pollution Liability
(including off-site clean-up)
• Employee Benefits Liability
• Crime
• Employment Practices Liability
• Fiduciary Liability
• Workers Compensation
Other carriers are now making a special point of alerting club managers to the heightened need to guard against cyber attacks, database breaches and other threats to IT security. The boom in food-and-beverage revenues has also shined a harsher new light on risks that can be created by kitchen fires or food-contamination situations. And the trend to provide more year-round outdoor activities has opened up more exposure issues related to sports like shooting, skiing or biking.
Concerns Surrounding Kids
The most prevalent area of renewed focus on, and heightened concern about, potential liabilities surrounds children’s activities, which are expanding universally as all properties seek to not only establish, but distinguish, themselves as being truly family-friendly. This has put renewed emphasis on the need to redouble efforts to make sure clubs and resorts are first identifying, and then taking proper steps to minimize exposure and maximize safe operations as they institute or expand services such as babysitting and day-care services, and ramp up youth-camp programs.
The good news is that, as with all other areas, the insurance providers that specialize in writing coverage for club and resort properties are stepping up their efforts to provide resources and services that can help operators understand the full scope of their exposure and take the necessary risk-management steps. Here are some of the preventative measures these carriers are now recommending as standard procedure for all clubs, as they develop more expansive programs for the younger segments of their memberships:
• All staff members who work with children must get recommended background checks.
• A “two-adult rule” should be adhered to at all times, to ensure that no child is ever alone with a staff member.
• Proper training should include definitions of what constitutes acceptable interaction with a minor.
The increased popularity and use of fitness and pool facilities, combined with more prevalent attention on harder-to manage threats to public health from new strains of contagious diseases, has also put a renewed focus on equipment and facility risk. As a result, insurance experts are encouraging their club and resort clients to make sure their practices and coverages are updated to address these issues:
• Pool drains must now comply with the federally mandated Virginia Graeme Baker Pool and Spa Safety Act (http://www.poolsafely.gov/pool-spa-safety-act/).
• Diving boards, slides and other pool equipment should be separated from the rest of the pool, meet manufacturers’ depth requirements, and always be monitored by lifeguards.
• Traffic in and out of water parks and pools should be controlled with self-latching gates.
• Because of heightened concern about parasites such as Cryptosporidium, which can be harbored in splash pads, water quality must be tested and monitored regularly. Clubs considering a splash pad should avoid the types that re-circulate water.
• Lifeguards should be available, but when they are not, “use-at-your-own-risk” language must be prominently displayed; when the pool is closed, it should be locked.
• Rescue equipment should be readily available and well-maintained.
Tell Us What You Think!
You must be logged in to post a comment.