Tenant Management Risks
- Late or unpaid lot/rental fees and eviction challenges
- Disputes over park rules, noise, pets, or shared facilities
- Tenant-caused damage to infrastructure or neighboring sites
Balancing fair enforcement of park policies with tenant relations requires clear lease agreements and timely conflict resolution.
Regulatory & Compliance Risks
- Non-compliance with zoning laws, health and safety codes, and environmental permits
- Potential fines, legal action, or forced shutdown for violations
Owners must understand and stay current on federal, state, and local regulations to avoid significant penalties.
Infrastructure & Maintenance Risks
- Aging roads, electrical systems, water/sewer lines, and communal facilities prone to failure
- High costs and resource demands for routine upkeep and emergency repairs
- Safety hazards from potholes, exposed wiring, or malfunctioning amenities
Neglecting infrastructure upkeep can lead to accidents, expensive liability claims, and reputational harm.
Environmental & Pollution Risks
- Improper sewage or greywater disposal contaminating ground and waterways
- Fuel, oil, or chemical spills from boats and service operations
- Stormwater runoff, erosion control, and protected-habitat concerns
Failure to manage waste and pollutants can trigger cleanup orders, hefty fines, and long-term ecological damage.
Financial & Market Risks
- Seasonal occupancy swings creating off-peak cash-flow shortages
- Economic downturns, shifting traveler preferences, or new competitors reducing demand
- Rising insurance premiums, interest rates, and utility costs squeezing margins.
Mitigating these risks demands diversified revenue streams, robust marketing, and financial reserves to weather seasonality.
Natural Disaster & Weather Risks
- Storms, floods, hail, or high winds damaging structures, docks, common areas, and infrastructure
- Fallen trees or flying debris posing safety and structural threats
- Fire hazards during dry seasons or due to faulty electrical hookups
Comprehensive emergency plans, disaster-proof construction, and proper insurance coverage are essential.
Liability & Safety Risks
- Slip-and-fall incidents on wet, uneven grounds, decks, docks, and walkways
- Injuries in playgrounds, pools, or during organized activities
- Food-borne illness outbreaks at park-run events or shared kitchens
Routine safety inspections, clearly posted rules, and staff first-aid training help limit exposure.
Security & Theft Risks
- Break-ins, vandalism, or theft of trailers, boats, personal belongings, and equipment
- Inadequate lighting or surveillance increasing vulnerability
Investments in perimeter fencing, lighting, cameras, and patrols bolster deterrence and guest confidence
Operational & Staffing Risks
- Employee shortages, high turnover, or skill gaps undermining service quality and safety
- Vendor reliability issues disrupting utilities, maintenance, or amenity operations
- Technology failures in reservations, payment, or communication systems
Cross-training, strong vendor contracts, and backup plans for critical systems ensure operational continuity.
Reputation & Legal Risks
- Negative online reviews, social-media backlash, or local community opposition
- Lawsuits following major safety lapses, environmental incidents, or discrimination claims
Transparent communication, proactive community engagement, and swift incident response protect brand integrity.
Recreation Business Insurance 