Seasonal Business, Year-Round Risk: Insurance Questions for Ski, Rafting and Tourism Operators
In the Roaring Fork Valley, some businesses earn much of their annual revenue in just a few busy months. Rafting outfitters, ski shops, tour operators, restaurants and other seasonal businesses prepare all year for the customers who arrive when the season begins.
But a busy season also brings changing risks. More employees, additional equipment, larger crowds and new activities can all affect how a business should be insured. The right time to review those exposures isn’t after something goes wrong. It’s before the season begins.
Liability: make sure your actual activities are covered
General liability insurance may help protect your business against certain claims involving bodily injury or property damage. But for businesses offering guided adventures, instruction, equipment rentals or other recreational activities, the details matter.
A policy that covers your storefront or office doesn’t necessarily cover guests participating in activities on the mountain, trail or river. Some activities require specialized insurance, and coverage may depend on the type of activity, where it takes place and how it’s supervised.
A signed liability waiver can be an important risk-management tool, but it doesn’t replace appropriate insurance. Waivers also have legal limitations, so consider having an attorney familiar with Colorado recreational liability review yours.
Seasonal employees and payroll
Workers’ compensation is generally required in Colorado when you have employees, and seasonal and part-time workers can count. If your staff grows sharply in peak season, your payroll estimate matters. Policies are typically reviewed through a premium audit, and the final premium can change based on actual payroll. Keeping clear records of seasonal hires, hours and any independent contractors makes that audit smoother.
A premium adjustment isn’t necessarily a penalty. Workers’ compensation premiums are often based on estimated payroll, so the final audit reconciles the estimate with actual exposure during the policy period.
If you use independent guides or subcontractors, ask what documentation you need from them and how their work affects your liability coverage and your workers’ compensation audit.
Equipment, vehicles and property
- Rental or guide equipment, such as rafts, bikes, skis or snowmobiles, may need to be insured separately from your building contents. Ask how equipment is covered, including when it’s stored, transported or in a customer’s hands.
- Vehicles and trailers. If you shuttle guests or haul gear, ask whether your commercial auto coverage fits how you use each vehicle.
- Your building and contents. Winter and shoulder seasons bring their own risks, like snow load, frozen pipes and empty buildings. Ask about any conditions for vacant or seasonally closed property.
Income when you can’t open
If a covered loss closes your doors during the busy season, lost income can matter more than the repair bill. Business income coverage may help in some situations, but it typically requires a covered physical loss, and waiting periods and limits may apply. When reviewing business income coverage, make sure your insurer understands how much of your annual revenue is concentrated in your busiest months. Seasonal fluctuations can make a significant difference in how coverage needs are calculated.
Permits, landlords and certificates of insurance
Many operators work under land-use permits or on leased property. Permit holders, landlords and event partners often require proof of insurance, and sometimes ask to be named as an additional insured. A certificate of insurance provides information about your coverage, but it doesn’t change your policy or automatically make someone an additional insured. If a permit, lease or contract requires additional insured status or special coverage terms, those requirements may need to be addressed through the policy itself. Ask what each party requires before the season starts, and allow time to get it set up.
Questions to ask before your season starts
| Part of your business | Questions to ask |
|---|---|
| The activity you offer | Is each activity listed and covered, or are some excluded or limited? Does coverage depend on guide certifications or safety practices? |
| Seasonal staff | Is my payroll estimate realistic for peak season? How will independent contractors be treated at audit? |
| Gear and vehicles | Is rental and guide equipment insured, and where? Do my vehicles match how I really use them? |
| Closing or damage | If I can’t open during peak season, what would be covered, for how long and up to what limit? |
| Permits and partners | What insurance do my permits, landlord and partners require, and have I requested the certificates? |
| Guest alcohol or food | If I serve alcohol or food, is that covered, and under what conditions? |
Don’t forget the off-season
Even when you’re closed, your property, stored equipment and policy still matter. Ask whether you can adjust coverage or payment timing for the off-season, and what conditions apply if the building is empty. Don’t cancel or let coverage lapse without talking to your agent first, since a gap can be hard to explain when you reopen.