Reduced Attendance and Reduced Paid Skier Days Insurance

REDUCED ATTENDANCE

How could your resort recover financially if you had a drastic reduction in Paid Skier Days?

Our goal is to offer catastrophic type insurance at a reasonable price. This is not to insure a budget short fall of a few percent, but rather to insure against a bad year from becoming a disaster.

What does this insurance cover?

Loss of income to the ski area because of a significant reduction in Paid Skier Days, resulting from any cause or combination of causes not specifically excluded.

What is a paid skier day?

It would be Total Skier Days less season tickets and complimentary tickets.

What type of causes are covered?

Some examples are:

Lack of snow
Too much snow
Ice storms
Road closures
Poor economy
Airline strikes
Problem with airports, earthquakes, etc.

What type of causes are excluded?

You must refer to the policy for specifics, however some examples are:

Damage to your facility
(this is already covered in your property insurance)
Fraud
Pollution
Losses within your control

How does it work?

At the beginning of a season we agree on a Base Number of "Paid Skier Days." We also agree on a Value Per Paid Skier Day which, in addition to lift ticket receipts, would include receipts for rentals, lessons, restaurant & bar.... There is a deductible, i.e. 10% and a coinsured portion.

What if the total loss included some covered causes and some excluded causes?

Only that part of a loss caused by excluded causes would not be covered, the rest of the loss (subject to limits, deductible, coinsurance) would be covered.

An Example:

Base Paid Skier Days	500,000
Value Per Paid Skier Day	$50.00
Actual Paid Skier Days	375,000
Total Value of Lost Paid Skier Days (125,000 x $50.00)	$6,250,000
Less Deductible ([10% of 500,000] x $50.00)	$2,500,000
Less Coinsurance	$625,000
Net Covered Loss (Subject to Limits Purchased)	$3,125,000
This is catastrophic insurance. To insure the whole loss would be cost prohibitive. In this example the first 10% of Lost Paid Skier Days is the deductible. The next 10% is 75% insured. Below 80% of the agreed upon Paid Skier Days is 100% insured subject to policy limits.

Click here for application

For more information contact: Joe or Dan McNasby at 800-942-5913

MDM Group Associates, Inc.
2620 S. Copper Frontage, G-3 P.O. Box 775330
Steamboat Springs, Colorado 80477
970.879.5560 - Fax 970.879.1462 - 800.942.5913
info@mdmgroup.net