Just like the Marines, Davis-Garvin selects the best people, instills our core values, and then prepares to “take the beaches” for our customers. Founded in 1981 with an innovative spirit and commitment to excellence, we have spent almost 30 years customizing insurance products and developing unique insurance programs to serve the forest products industry. Working throughout the United States with corporations, companies, and individuals alike, we have been able to provide sound risk management solutions for industry segments such as logging contractors, sawmill operators, foresters, timberland owners, and hunt club participants—just to name a few.
As a proven innovator of insurance solutions in the forest products industry, we would like to take this opportunity to introduce you to one of our unique specialty products—Hunt Lease Liability. We will take you through a broad view of the current insurance environment and competitive market place, as well as discuss the potential risks related to landowners leasing land for hunting.
Hunting Leases: Paradigms and Risks are Both Changing
Over the last few decades, many forest landowners have altered their expectations regarding leasing land for hunting. At one time, forest owners entered into hunting leases for security reasons; the hunt club would watch over the otherwise vacant land, providing a measure of security to the owner. Lease rates during this time were merely a means to offset annual property taxes.
Today, for many forest landowners, this philosophy has changed. The market’s supply and demand now determines hunt lease rates—what the customer is willing to pay and at what price is the landowner willing to lease the land for hunting. Today, in many instances, hunt lease revenues can equal or exceed annual operating expenses.
One of the first things a landowner must consider when leasing land for hunting is the importance of finding the correct insurance coverage to protect against potential liability exposures. In the past, landowners have relied on a combination of basic liability policies to take care of their needs, such as:
- Property Liability Coverage – To protect against the risk of legal liability arising from physical damage to tangible property of others caused by the negligence of an insured.
- Vacant Land Liability Coverage –To protect against the risk of legal liability arising from damage to others associated with vacant property caused by negligence of an insured. (“Vacant” property contains no contents, no improvements or occupants.)
- Commercial General Liability Coverage – To cover legal liability exposures arising from business operations.
Since we now live in a world which lawsuits are filed on a whim, with lawyers constantly looking for loopholes in common, universal, or unchanged policy forms, a landowner needs an insurance product that has been customized to protect both his or her property interest and the potential liability exposure.
The Davis-Garvin Agency has responded to this need by developing a critical (and hard to find) general liability product designed solely to protect forest landowners and hunt clubs. Our hunt lease liability policy includes coverages such as:
- Member-to-member liability
- Guest liability
- Liability coverage for use of hunting dogs
- Liability coverage for use of mobile equipment
- Liability coverage for use of tree stands and other raised platforms
Furthermore, the policy covers any cost of defending against a lawsuit—above the policy limits.
The knowledge and experience we have gained over the last three decades has enabled us to develop and offer an excellent, safe, and secure choice for general liability insurance for both forest landowners and hunt clubs. We have customized this specialty product to protect against the risks associated with hunting, while at the same time removing the worries landowners have about inviting hunters onto their property.
So just how do we assess hunting exposure?
Before jumping into landowner and hunt club risks and exposures, let me take a brief moment to discuss what—at basis—insurance actually is. Insurance equals Risk Transfer.
Insurance in its simplest form is the transfer of risk from one party to another party, for a price. You, as landowner, have the choice to accept all the risk associated with your property (fire, vandalism, personal injury, and so on)—or you can choose to transfer some or all of that risk to an insurance company. As the landowner, you are ultimately responsible for everything that occurs on your property. So if an accident or loss occurs on your property, you are involved. To protect yourself you need to consider all of your exposures.
There are several key elements a landowner will need to provide for an adequate hunting exposure assessment, including but not limited to the following:
- §· Is there a formal license agreement between the landowner and the hunt club?
(A formal agreement is critical in setting forth expectations and defining liabilities for both parties.)
- §· What is the location and acreage of the property?
(Hunt lease liability coverage is premise-based. An accurate record of location and acreage being leased ensures that landowners and hunt clubs are adequately protected.)
- §· Is the hunt club allowed to use all-terrain vehicles on the property?
(ATV use should be well-defined in the formal license agreement. Restricting ATV use for hunting purposes only is a significant risk limitation for landowners.)
- §· Are deer stands or raised platforms permissible?
(Use and placement of deer stands should be described in the formal license agreement. Additionally, removal procedures in the case of timber harvesting or lease cancellation should be defined.)
- §· Is dog hunting allowed?
(The permission of dog hunting should be defined in the formal license agreement in accordance with local and state regulations.)
- §· What losses has the insured incurred?
(Maintaining an active risk management program by understanding the causes of past losses is a valuable tool in reducing future losses.)
The outcome from our initial exposure assessment is to gain an understanding of the processes used by the landowner to manage their hunt lease program. It is important to note that not all policies are the same, and therefore every policy does not cover all risks.
Customizing Risk Exposure
Always consult with an insurance professional and ask questions about your coverage. The duty of an insurance agent is to ask the appropriate questions and provide a proper assessment of the risk to the underwriters of the insurance companies. At the Davis-Garvin Agency, we prefer to conduct an initial evaluation or meeting to become familiar with the process that you as a landowner utilize when you lease or license the hunting rights of your property. We have discovered that there are similarities among everyone leasing land for hunting; however, we also acknowledge that the circumstances for every landowner can be different. By combining this initial risk assessment with our unique experience in hunt lease liability insurance, we are able to tailor the correct coverage to match the landowner’s specific need.
The frequency of hunting accidents is sporadic. The level of intensity that a claim takes on typically depends on the nature or origin of the accident. Many of the most serious accidents arise out of the use of all-terrain vehicles (ATV). Unfortunately, a significant portion of ATV accidents typically involve minors or young adults acting carelessly. The use of ATVs for hunting is commonplace today, and if used in accordance with manufacturers suggested guidelines, ATVs can be a great tool. Landowners who allow ATV use by hunters need to do everything possible to advocate the safe operation of these vehicles.
Other common types of claims include:
- Falling from deer stands
- §· Club maintenance (falling from tractors)
- §· Poor firearm safety (self-inflicted gun shot wounds)
- §· Accidental shootings
In addition to acquiring hunt lease liability coverage for protection against accidents, Davis-Garvin believes forest landowners should consider basic risk management practices when leasing land, to reduce liability concerns further.
First, execute a formal hunting lease agreement that details what is and what is not permissible on the property. As part of this lease, provide a clear map of the property boundaries, and identify any known hazards such as old wells or mines located on the property. Secondly, develop a method that allows you to communicate with hunters leasing from you, and make hunting safety a regular topic that you discuss. Lastly, implement quality risk management on the ground. Remove cable gates, remove or repair exposed culverts, retire abandoned woods roads, post your property, and notify hunters of upcoming silvicultural operations.
Good risk management aimed at reducing the frequency and size of accidents and claims will make a difference.
Often Overlooked but Critically Important: An Effective Claims Handling Process
A critical yet often overlooked aspect of our hunt club liability program is our Claims Handling Process. Accidents happen and claims do occur.
We take claims handling seriously and use these unfortunate situations as a means to prove our value to our customer. One of the most significant enhancements to our hunt lease liability program since moving to Praetorian Insurance Company is the improved and streamlined claims handling process. Before our coverage was with Praetorian, the claims handling process involved up to 19 different steps, including multiple levels of review and approvals by overseas brokers and underwriters.
Today, all losses are handled and settled directly by QBE Specialty Claims (formerly Southeastern Claims Services, Inc.) in a simple three-step process. The QBE Specialty Claims unit does not request authority from an outside broker or need underwriting approval from overseas. The consolidation of these processes saves time and money and enables Davis-Garvin to provide a high level of customer satisfaction.
What is the Future of Hunt Lease Liability Insurance?
As I pen this article, the financial markets are doing strange and scary things. The political and global environments are rocky—and that’s on a good day. Volatility in the financial markets has impacted the insurance industry. Many insurance industry leaders report that the industry has already seen a watershed of changes as a result of the financial crisis, and many conclude that the environment will remain in the same state of rapid and pervasive change for the next couple of years.
Over these coming years, experts agree that the insurance industry will see the following macro changes:
- §· Restructuring – As firms pull out of business lines and geographic areas, some carriers will be able to capture market share or expand lines of coverage.
- §· Mergers and Acquisitions – The current fragmented global insurance industry is ripe for a resurgence in merger and acquisition activity, especially as financial markets begin to stabilize.
- §· Regulation – Oversight of the insurance industry is likely to increase, due to the federal bailout of several large national insurers.
At the beginning, I mentioned the legacy of the Marine Corps. As unprecedented as is the business environment we find ourselves in today, consider the environment in which the US Marine Corps has operated over the last 230 years. Throughout this time, the Corps has been able to brand itself with its ability to mold young recruits into superior soldiers. This consistent, dependable ability has earned it the recognition as one of America’s elite military branches.
Davis-Garvin, too, has seen and will continue to see our share of change. To maintain our success we hold fast to our deep-rooted beliefs in our ability to provide clients with secure and strong insurance markets, prompt and efficient claims handling, safety training and education, and above all quick and responsive sales and customer service.
Hunt lease liability insurance will remain an essential tool for forest landowners who choose to lease hunting rights to their property. As long as there is risk, there will be parties desiring to transfer that risk. We believe that landowners who continue to invite hunters onto their property will remain interested in protecting their hunting liability exposure by acquiring hunt lease liability insurance.
We concur with many of the industry experts that the insurance market will continue to change rapidly over the next couple of years. We also believe that hunt lease liability insurance will continue to experience change during this time. Davis-Garvin views these uncertain times as an opportunity for us, as an agile firm with an eye on the future, to maintain ourselves as the elite provider of hunt lease liability insurance.
The Davis-Garvin Agency provides an additional line of important coverage for forest landowners: timberland liability. Although not discussed in this article, our timberland liability product is provided by Praetorian Insurance Company. Timberland liability coverage offers great protection 365 days a year against known and unknown liability issues you face as a landowner.
The Author
Tim Lowrimore is the Account Executive for hunt club liability, timberland liability, consulting forester’s general liability, and standing timber coverage for the Davis-Garvin Insurance Agency. He joined Davis-Garvin from Rayonier, where he served as Resource Development Manager. Earlier, Tim was the Director of Forest Policy with the Georgia Forestry Association and Senior Forester for the Georgia Forestry Commission. He holds a Bachelors of Science in Forest Resources from the Warnell School of Forestry and Natural Resources at the University of Georgia. Contact Tim at 800-747-5212 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Sidebar:
Hunting Insurance with Strong, Reliable Backing
As the forest products industry evolves, so too does the need for new and improved coverage options. In 2009, Davis-Garvin chartered new ground in the hunt lease liability arena by securing an admitted or authorized insurer, Praetorian Insurance Company—a division of QBE the Americas (A.M. Best Rating ‘A-Excellent’), to provide coverage for our hunt lease liability program. Our carrier, Praetorian Insurance Company, allows Davis-Garvin to maintain full underwriting privileges for our hunt lease liability program because of our experience and expertise in the area. Underwriting is the process we use to determine the eligibility of a customer and how much premium we should accept for assuming the customer’s risks.
By using an authorized insurance company, we gain the guaranteed financial security that accompanies an admitted carrier. Admitted carriers follow guidelines set forth by the department of insurance (DOI) in each state it does business, and the DOI regulates every admitted insurance carrier’s rates, as well as its practices, cash reserves, and advertisements. Admitted insurance carriers are prohibited from certain business transactions without DOI approval. In addition, admitted carriers are part of their state’s guaranty fund, which will pay an insured’s claim in the case of financial insolvency on the part of the carrier.
A significant advantage of being with an admitted insurance carrier is that there are no longer any fees or taxes associated with our policy. Other enhancements to our hunt lease liability product include no deductible in the event of a claim, an increased medical payment limit from $1000 to $5000, and the capability to provide higher policy limits. Another program benefit—often overlooked—is the provision of legal defense costs above the limits of the policy; you will not exhaust your policy limits with legal fees should you become involved in a lawsuit.
We believe these modifications add tremendous value and security to our hunt lease liability program and, ultimately, to our clients.
