CBIZ Sattler Adventure Sports Blog

Insights and tips on how to protect your adventure sports business, giving you and your guests peace of mind.

Ward, Hayden
/ Categories: BLOG Articles

Top Threats for Adventure Sports Businesses

Threats to Outfitters and Guides

Optimism is the fuel that drives the entrepreneurial spirit, so it’s not surprising that most business owners consider themselves optimists. Too much optimism, however, can get one into trouble. A business plan built solely on the “best-case scenario” is like a house of cards; one gust of wind — or lawsuit — and the entire business can come crashing down. That’s why smart business owners temper their innate optimism with a healthy dose of reality. In other words, they learn to manage risk.

The first step in implementing a risk management plan is identifying potential risks. To help you get started, here’s a list of the top threats facing adventure sports business owners. As you read through, consider the unique risks facing your business and ask yourself whether those risks are being managed effectively.

The Top 9 Risks Your Adventure Sports Business May Face 

1. Property Threats

For the long-term security of your outfitters and guides business, it’s vital that you evaluate potential threats to your property and develop a plan to manage them. Begin by taking a complete inventory of all your assets to determine how a loss might affect your business and how much coverage you need.

2. Business Interruption

The U.S. Department of Labor estimates that more than 40% of businesses never reopen following a disaster such as a fire or flood. Is your  business prepared to weather the storm if disaster strikes? If a fire causes your facility to be temporarily unusable, what would you do?

3. Key Person Losses

Many businesses are built around the talents and expertise of a few individuals. If an employee crucial to the functioning of your business departs unexpectedly due to death, disability or an unexpected resignation, would day-to-day operations continue as usual or would disorder and disruption ensue?

Key person insurance  can help you answer these questions with confidence. This coverage is designed to provide financial stability in a time of stress and uncertainty, allowing you to keep your business moving without missing a beat.

4. Employee Injuries

Small business owners often struggle with understanding their employee health and safety obligations. You have the same responsibility to indemnify workers who are injured or become ill during their employment. Many businesses do not realize the full effect workplace accidents have on their organization.

Thankfully, by managing exposures and promoting safety, it is possible to control workers’ compensation premiums. Having the proper pre- and post-accident procedures in place can drastically reduce the severity of a  workers’ compensation claim  and implementing a comprehensive safety program can reduce the accident rate. Together, these two steps can produce tremendous long-term savings.

5. Managing Cybercrime

Adventure sports businesses often do not have a formal IT department or even rudimentary internet security measures, which leaves them vulnerable to unscrupulous cybercriminals searching for an easy target.

If your business stores customer records electronically, it is crucial that you have robust security measures in place. In addition to taking preventative measures to reduce internet-based exposures, specialized technology coverage, such as cyber liability insurance, can help protect your business against damage from  cyberattacks, data breaches and other internet-based exposures.

6. Employment Practices

From the pre-hiring process through the exit interview, you’re at risk for a lawsuit. In fact, three out of five employers will be sued by a prospective, current or former employee. Although many lawsuits are groundless, defending against them is costly and time-consuming. Your business should take a hard look at whether it can afford to defend itself against accusations of wrongful employment practices.

If not, there is an insurance solution called  employment practices liability coverage  that can protect your company against wrongful termination, discrimination (e.g., age, sex, race, disability) or sexual harassment lawsuits.

7. Contracts & Waivers

When first starting out, many new business owners simply don’t have the time or expertise to adequately evaluate each clause in everything they’re signing. This oversight, however, can create major problems down the road.

While it’s tempting to shave costs by skimping on legal fees, making sure your business isn’t accepting additional and unnecessary risk can save you a lot of money over the long haul, both in legal costs and insurance coverages.

A thorough  liability waiver  can also save you a great deal of money. It’s a legal defense mechanism for your business that can protect your business from liability of negligence and shows goodwill in terms of mitigation. 

8. Supply Chain

Do you rely on one or more third-party suppliers to produce certain components in your products? If you do, an interruption to your supplier’s regular business operations could have a crippling effect. While you only have so much control over your suppliers, you should always try to minimize potential liability through contingency planning and other risk management techniques.

9. Liability Losses

No matter how well you plan, running a small business can be fraught with unexpected surprises. The only way to completely avoid liability is to shutter your business. Smart business owners do the next best thing ― protect their assets by carrying adequate  insurance  coverage.

The right insurance policy for your business will provide coverage for claims of bodily injury or other physical injury, personal injury (e.g., libel, slander), injury and property damage as a result of your premises or operations. A policy with adequate coverage limits enables you to continue normal operations while dealing with real or fraudulent claims of negligence or wrongdoing and provides coverage for the cost of defending and settling claims.

Insurance is a key component of any comprehensive risk management plan, but successful risk management also involves prevention, training and contingency planning. Get the protection you need today;  request a free CBIZ Sattler Adventure Sport Insurance quote.

This blog may contain scenarios that are provided as examples only. In an actual claim situation, coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

5774 Rate this article:
No rating

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment

Theme picker







Overview Icon - AVS



Fins and Feather insurance




800.615.8418 | [email protected]

1504 8th Street | Lewiston, ID 83501  

Monday - Friday | 8:30 a.m. - 5 p.m. (PST)


CBIZ Sattler Adventure Sports Insurance, a division of CBIZ Insurance Services, Inc., is the largest insurer of adventure sports businesses in the United States. As part of an $850 million New York Stock Exchange traded company (CBZ), we developed a policy coverage to meet the needs for those in the recreation and outfitting industries. Our policy is underwritten by an A.M. Best Rated A++ (Superior) company.