Michigan State University Extension
Tourism Educational Materials - 33139716
06/06/02
Liability and Insurance Protection-Rural Recreation Enterprises
Archived Document: This Extension bulletin is no longer
available from the publishing State and may contain
outdated information.
Source: Michigan State University
Authors: Twardzik, Louis; Cary, Richard
ID: E0580
CONTENTS
Legal Concepts of Liability
Negligence
Elements of Negligent Action
Duty
Breach of Duty
Causal Connection
Actual Damage
Degree of Care Owed a Visitor
Trespasser
Licensee
Invitee
Accident Prevention and Loss Reduction
Liability Insurance
Economics of Insurance
The Insurance Contract
Types of Liability Insurance Policies
Owner's, Landlord's and Tenant's
Comprehensive General Liability
Insurance Costs
Summary
By Louis F. Twardzik And Richard E. Cary
FOREWORD
The continuing high DEMAND for outdoor recreation
opportunities by an increasingly urbanized and affluent
population, along with the changing pattern of land use
and public policy in agriculture, encourages the
development of rural recreation enterprises by many
landowners throughout the country.
This publication is designed largely for the landowner,
farmer and non-farmer, who is not trained or experienced
in operating a recreation business. The large scale
recreation operator with all the knowledge and skills
normally associated with a high investment operation
generally plans for liability as a preliminary step to
investment. The principles of liability and insurance
protection would, nevertheless, apply to most commercial
recreation enterprises regardless of size of operation. In
this treatment, the intent is to identify those principles
and to show how they apply to rural recreation
enterprises.
It is the special hope of the authors that this work will
encourage potential recreation operators to discuss this
phase of business management with legal counsel and
insurance representatives prior to any investment
commitment.
Louis F. Twardzik,
Professor and Chairman, Department of Park and Recreation
Resources, and Recreation Specialist, Cooperative
Extension Service
This information is largely based on "An Investigation of
Liability Insurance Programs of Rural Recreation
Enterprises in Southern Michigan," an unpublished Master's
thesis by Richard E. Carp, graduate student, Department of
Resource Development, Michigan state University, 1966. Mr.
Carp is currently employed as a Recreation Planner for
the Pennsylvania Power and Light Co.
The surging demand for outdoor recreation facilities has
generated interest among farmers and other rural
landowners in developing recreation facilities as a means
of increasing income.
Those considering recreation as an auxiliary land use
should recognize that the operation of a commercial
recreation enterprise is not unlike the operation and
management of any private business. There is more to the
establishment and operation of a rural recreation
enterprise than simply "opening the gates" to make an area
available for public use.
As soon as a recreation operator makes his land available
for public use, he creates many new problems. One which he
must immediately face is the liability that he, the
landowner, will incur through the operation of such an
enterprise. Although liability suits may be involved in
the ownership of any property, the owner is generally in a
more vulnerable position when he charges a fee to others
for the use of his property and facilities.
Before engaging in a commercial recreation enterprise, the
landowner must recognize that he may be held liable for
accidents resulting in injury to friends and customers. An
award in court in favor of the injured patron may be
slight, or it may take his life savings and property.
Insurance companies report an increasing public awareness
of liability, resulting in a "claims conscious public," an
increase in the amount of claim settlements awarded by
courts in recent years, and a tendency for court decisions
to favor the plaintiff or injured patron. Therefore, the
operator of a recreational facility cannot afford to risk
operation without protection against liability claims or
law suits. He should obtain special liability insurance
which (1) will provide legal aid in the event of a law
suit and (2) pay any claim or awards by the court, up to
the limit of the policy.
Normally, the ordinary personal liability policy or the
general farm liability policy will not provide coverage
for liabilities incurred through the commercial operation
of recreation facilities. Therefore, the recreation
operator should obtain additional insurance protection
before he invites the public upon his premises.
Many questions have arisen among recreation operators
regarding legal liability and liability insurance aspects
of operating a rural recreation enterprise. The purpose of
this report is to provide the potential or practicing
recreation operator with an understanding of the basic
legal concepts of liability, principles of insurance, and
types of liability insurance applicable to recreation
enterprises.
Also provided is an indication of insurance costs as
reported in a survey of selected enterprises in Michigan,
and suggestions for reducing liability and liability
insurance costs.
LEGAL CONCEPTS OF LIABILITY
The laws relating to liability continue to be drawn from
common law, or a set of general legal principles, rather
than having been firmly incorporated into statute law.
Because strict interpretation of the law therefore depends
primarily upon the decision of a jury, this report will
present the common law doctrines upon which liability is
founded. The recreation operator is encouraged to consult
his lawyer for further interpretation of liability in the
operation of a particular enterprise.
NEGLIGENCE, THE BASIS OF LIABILITY
"Negligence" is the essential element which must be proved
before a person can be legally held liable for
unintentional injury to others. The law of negligence is
based upon precedent as established by previous court
decisions.
Negligence is generally considered to be the omission by
an individual to do something which a "reasonable man"
would do under similar circumstances; conversely,
negligence may be the act of doing something which a
reasonable and prudent man would not do. The standard used
to determine negligence then, is the behavior of "a
reasonable and prudent man."
In court, it is this hypothetical "reasonable man" against
whom the defendant's action is measured. It will be up to
the jury to determine if the individual has acted in
agreement with this standard. If the jury decides that the
defendant's behavior does not measure up to that action
expected of a reasonable man under similar circumstances,
the individual will almost certainly be held liable.
Negligence is further gauged by one's ability to
anticipate danger. Thus, the foreseeability of danger is
an important factor in determining liability.
Generally, if the unintentional injury is the result of a
danger which could be foreseen by a reasonable man, and
thus avoided, the operator who failed to see the danger or
failed to act may be held liable for damages because of
negligence. When a jury decides that an injury could not
have been foreseen nor prevented by reasonable
precaution, usually the operator will not be held liable.
Unavoidable accidents do happen, and where there is no
negligence, such accidents do not form the basis for legal
action.
An operator must also consider that negligence could be
found even where he has taken careful consideration and
precaution in conformity with his own best judgement. In
such a case, if a jury decides that the operator's
judgement falls short of what. a reasonably prudent person
would have done under similar circumstances, the operator
may still be held negligent and legally liable.
ELEMENTS OF NEGLIGENT ACTION
The successful maintenance of a negligence suit requires
consideration of more than just conduct. Most legal
authorities concur that four general elements are
necessary to support a negligence suit. These are:
(1 ) a legal duty to conform to a standard of behavior to
protect others from unreasonable risks.
(2) a breach of that duty by failure to conform to the
standard required under the circumstance.
(3) a sufficiently close causal connection between the
conduct of the individual and the resulting injury to
another.
(4) actual injury or loss to the interests of another.
DUTY
Duty is recognized in the courts as an obligation of the
individual to use reasonable care to prevent exposing
another to unreasonable risk of injury when the
relationship between the two parties is of a nature to
warrant such duty.
BREACH OF DUTY
A breach of duty is failure to conform to that standard of
a reasonable man. Negligence will not be maintained unless
there is a duty to use care and a breach of this duty.
Therefore, not every accident resulting in injury will
mean that liability exists, for injury or damage alone is
not adequate support for legal action.
CAUSAL CONNECTION
In support of negligence action, the causal connection
must establish that the defendant's act of omission or
commission was a contributing factor in bringing about the
damage to the plaintiff. In order for the defendant to be
held liable, it must be proven that he has in fact caused
the injury to the plaintiff. Once it has been established
that the defendant's conduct was one of the causes of
injury to the plaintiff, it must be further determined
that there were no intervening acts or events, such as an
act of God or the negligence of a third person. If such
intervening acts make the causal connection between the
defendant's behavior and the resulting harm seem too
remote, then there will be no liability.
ACTUAL DAMAGE
In a negligence action, it must be shovel that damage or
injury actually happened to the plaintiff. Damages cannot
be recovered from a law suit without proof of such damage
or injury.
DEGREE OF CARE OWED TO A VISITOR
The duty of a landowner to protect a visitor from injury
depends on the legal status of the person entering the
owner's property. To determine liability for negligent
injury, the law classifies a person going onto the
premises of another as trespasser, licensee, or invitee.
In a liability suit, the degree of care required by the
landowner is then determined by which of these
classifications the visitor comes under at the time of
injury.
TRESPASSER
A trespasser is one who enters the property of another for
his own purposes without permission of the landowner. In
general, the only duty owed a trespasser is to refrain
from willing or wanton injury to him.
The landowner is under no obligation to keep his premises
in a safe condition or to warn an unknowing trespasser of
unsafe conditions. However, court cases in Michigan have
held that once a landowner is aware of the presence of
trespassers, or if in the exercise of ordinary care he
should know of their presence, he is required to exercise
reasonable care to prevent injury to them, the same as he
would do for a licensee.
Another exception to the general rule of non-liability to
the trespasser is found in the "attractive nuisance"
doctrine which, when applied by the court, extends the
duty to include reasonable care in the case of trespassing
children.
This doctrine is invoked to protect children who are lured
on to property as a result of something there which is
unusually attractive to children. When applied, the rule
imposes upon the owner the duty or standard of reasonable
care usually awarded to invitees.
The attractive nuisance doctrine has been most often
applied in cases involving dangerous machinery; as a
general rule it does not apply to natural conditions. The
question of what is an attractive nuisance is for a jury
to decide.
Though recognized in Michigan, the attractive nuisance
doctrine has been conservatively applied and has not
severely impaired the rule that property owners owe no
duty to protect trespassers, adult or children, from other
than willful injury. However, since recent court decisions
have ruled that a landowner owes a duty to a trespassing
child, it appears that one might now be more easily held
liable in circumstances involving trespassing children.
LICENSEE
A licensee is one who enters the property of another with
the owner's consent. The licensee is distinguished from
the invitee by the fact that he is on the premises by
permission only and is there primarily for his own benefit
and not for any business which would be of benefit to the
landowner.
Social guests are usually considered licensees, as are
hunters or other recreationists using private property
with the landowner's consent when no fee is charged.
The duty of the property owner to the licensee is to
refrain from intentional injury, and to warn of any known
dangers which the licensee could not reasonably be
expected to know about or discover himself. The landowner
is not obligated to inspect his premises to discover
unknown dangers, nor is he obligated to make the premises
safe for the reception of the licensee. However, once a
danger is known to the landowner, he is obligated to
exercise reasonable care to warn the licensee of the
danger. If the danger is obvious or has been made- known
to the licensee, he must assume the risk and the landowner
has no further obligation.
INVITEE
An invitee is a business visitor invited or permitted to
enter the property of another for purposes which benefit
the landowner, or for the mutual advantages of the
landowner and the licensee. Guests who pay a fee for the
use of recreational facilities would therefore be
classified as invitees. To them, the landowner owes the
greatest degree of care to prevent injury.
The visit of an invitee returns a definite benefit to the
landowner. Therefore, the invitee is legally entitled to
expect that the premises have been made reasonably safe
for his reception. The landowner is obligated to ascertain
the existing conditions of his property and facilities so
that he may warn the visitor of any danger.
Although the landowner may be liable for injuries
resulting from a breach of this duty, he may not be held
liable if he warns the invitee of known dangers. If the
nature of the dangerous condition causing injury is such
that a reasonable inspection of the premises by the
landowner would not have discovered it, then he probably
will not be held liable.
The implication of this common law duty toward an invitee
by a recreation operator is evident. The safety of patrons
depends upon the condition of the premises and the
facilities provided for public use. The prudent operator
must not only warn or instruct the patron about existing
dangers, but he also must make periodic and thorough
inspections of the premises and facilities and promptly
make any necessary repairs or safety provisions. The
operator who fails to exercise such ordinary care could
not expect to have a good defense against any legal action
which may arise from the operations of a recreation area.
Releases Are Not Binding
Some recreation operators believe they relieve themselves
of this obligation to an invitee by obtaining releases
from paying guests, or by displaying signs that imply that
the invitee uses the facilities at his own risk and the
operator will not be responsible for accidents. Operators
should be aware that they cannot contract away their legal
responsibility. While this practice may tend to discourage
the filing of suits, it will not usually provide a defense
to legal action.
It should be noted that this duty is limited to the area
of invitation that part of the premises which is open for
use by the invitee. This area extends to the entrance and
safe exit from the property and to all parts of the
property which are open to the invitee, or so arranged
that the invitee could reasonably think they are open to
him.
*If a patron is free to use the premises, he will be
considered an invitee unless the proprietor specifically
warns the patron that the area intended for use is more
narrowly restricted.
*If the patron then goes outside the area specified in his
business invitation, he may be considered a licensee or a
trespasser depending on whether he goes with or without of
the proprietor's permission.
*If a visitor is led to believe that a particular area is
part of the business area intended for his use, he is
entitled to the protection owed an invitee.
In view of these considerations the recreation operator
should be aware that he may reduce the chance of accident
as well as his legal liability by specifically delineating
the recreation area and restricting guests from barns,
pasture, storage sheds, or other hazardous areas not
integral to the recreation enterprise.
Some operators may wish to consider limiting the use of
their facilities to members only. Such a practice, if
strictly controlled to exclude guests or new visitors, can
reduce liabilities. If a member frequently uses the
facilities and has become familiar with the hazards, there
is less likelihood of a suit in event of injury. In fact,
his familiarity might reduce the chance of recovery for an
injury or even completely void his right to recovery.
Operators adopting this practice have found that insurance
costs are considerably less than when the facilities are
open to public use. From a management viewpoint the
operator is relieved of many problems encountered in
dealing with the public and less time is required for
administration.
ACCIDENT PREVENTION and LOSS REDUCTION
One means of dealing with the risk of liability is through
reducing or eliminating factors that may cause injury or
loss. Not only will accident prevention reduce the chance
of injury, but as already indicated, legal liability may
be reduced through reasonable care in making the premises
safe and providing safety facilities. Indeed, insurance
companies are particularly interested in the accident
prevention program of recreation enterprises. Before
agreeing to write liability insurance, many companies will
carefully consider the degree of safety built into an
enterprise, as well as the awareness and desire of the
operator to prevent injury. Some companies provide for
premium reductions after a period of demonstrated safe
operation.
A safety program should begin with a study of the entire
area to identify existing hazards and determine methods of
eliminating them through design and layout of the
facilities. Professional assistance should be obtained to
assist in the planning and development of an enterprise.
The grounds and facilities should be frequently inspected
and any necessary repair or improvements promptly made. A
thorough maintenance program is an important part of the
safety program.
The recreation enterprise should be equipped with
appropriate safety precautions, particularly at swimming
areas, shooting ranges, and similar places of increased
danger. An operator may have a difficult time defending a
claim or law suit if there is a lack of proper safety
precautions, even though the absence of safety precautions
may not be the actual cause of the accident.
Overall supervision of the enterprise should be provided
to assure maximum safety. A plan for emergency medical
treatment should be prepared, including emergency
communication between the recreation area and medical
facilities. Insurance companies warn that the legal
consequences of not doing this kind of planning can be
severe.
Regulations pertaining to the use of recreation areas
should be posted to provide reasonable safeguards for those
who may use the area.
Certain activities and facilities create a greater risk of
injury than others. Horseback riding, diving boards, and
slides frequently cause accidents. The high incidence of
accidents from such facilities will be reflected in higher
insurance costs. The operator should consider avoiding
liability by not providing, or taking special and extra
care of, facilities associated with high risk. Not only
will insurance costs be less, but there will be less chance
of an accident or law suit.
LIABILITY INSURANCE
ECONOMICS OF INSURANCE
Insurance companies warn that liability claims are becoming
more prevalent, verdicts tend to favor the injured person,
and settlements awarded by the courts are spiraling upward.
Insurance cannot eliminate this risk nor prevent loss, but
it can transfer the risk to a professional risk bearer,
who is able to shoulder a potential economic loss. In
essence, insurance substitutes a known loss for an unknown
loss. Budgeting a recreation enterprise is important
because the insurance premium is a fixed cost which can be
planned for.
To avoid the risk of staggering losses, liability
insurance is indispensable. The shock of a large judgement
may completely destroy the financial foundation of the
recreation business. Even small damage claims can
seriously affect the financial stability of an enterprise.
A survey of recreation enterprises in Michigan indicates
that lawsuits have not been common in connection with
injuries, but damage claims resulting in payment of lesser
sums for medical treatment or property damage are not
infrequent.
Although lawsuits have not frequently occurred in
recreation enterprises, an operator cannot afford to assume
the risk of liability without insurance protection. Even
the most prudent and careful operator should not assume
that he will not be sued. A court decides whether the case
is justified. Even though the defendant may not be proved
negligent and liable, he may be faced with high defense and
legal fees. Liability insurance can provide protection
against such legal costs. The insurance company can also
represent the defendant in a lawsuit, so it is possible
that the defendant would not even have to appear in court.
An operator may wish to consider incorporation of his
enterprise. His liability would then be limited to the
value of the property and all other assets which are part
of the corporation. Liability insurance costs may also be
less, but a lawyer should be consulted about other
considerations and limitations before deciding to
incorporate.
THE INSURANCE CONTRACT
The standard liability insurance contract is usually an
agreement to pay on behalf of the insured, up to the limits
of the policy, all sums that the insurer is obligated to
pay as a result of accidents resulting in bodily injury or
property damage to others. This includes payment of
expenses incurred by the insured for immediate medical
treatment at the scene of the accident, whether or not the
insured is negligent. In the event of a law-suit, the
insurer agrees to pay all expenses of investigation,
defense, and settlement of the accident even if the suit
should be groundless or fraudulent.
Some contracts are written on the basis of recovery being
made per "occurrence" rather than per accident. Some courts
have ruled that deliberate acts which have unintentional
and unexpected results are not accidents, but are
"occurrences." The substitution of the word occurrence for
accident, may extend the coverage of the policy in some
cases.
TYPES OF LIABILITY INSURANCE POLICIES
Special liability coverage must be obtained for the
operation of most commercial recreation enterprises.
Comprehensive personal liability and general farm liability
policies do not usually cover liabilities where a fee is
charged for the use of recreation facilities. The two types
of insurance policies which are used for the protection of
recreation enterprises are the owner's, landlord's, and
tenant's policy (OL&T) and the comprehensive general
liability policy.
OWNER'S, LANDLORD'S, AND TENANT'S
The OL & T policy will provide coverage for liability
hazards arising from the ownership, maintenance, and use
of property. This is a "schedule type" policy commonly
issued to provide protection for such operations as
theaters, hotels, and stores, and may likewise be applied
to recreation enterprises.
For an additional premium, the recreation operator may
obtain additional coverage for products liability for
structural alterations.
Operators of refreshment stands, snack bars, or stores
should consider this liability for damages resulting from
goods sold to guests. Products liability coverage protects
against accidents occurring away from the premises as a
result of purchasing the product.
Structural alteration coverage may be needed to provide
adequate coverage for recreation enterprises undergoing
further development or improvement of facilities. Without
adding this coverage, the OL&T policy will not cover
liability for injuries related to new construction or the
demolition of existing structures.
COMPREHENSIVE GENERAL LIABILITY
The comprehensive general liability policy is designed to
provide a business with protection for all exposures,
including products liability unless specifically excluded.
Generally the comprehensive general liability policy is
regarded as providing more complete protection than the
OL&T policy because there is less~chance that an unknown
hazard will not be covered.
A major advantage of the comprehensive policy is that it
automatically covers any hazards, such as facilities added
during the year, without notifying the insurance company.
At inception of the insurance contract, a survey of all
existing hazards is made by the insurance company. At this
time an estimated premium will be determined, frequently
on the basis of estimated income. At the close of the
policy period, an audit is made which reveals the
addition of any other sources of liability that were not
present at the inception of the contract. At this time the
insured will be required to pay an additional premium for
facilities that were added during the policy term.
INSURANCE COSTS
Adequate liability insurance for most recreation
enterprises is available from a number of companies.
Campground operators particularly have had relatively
little difficulty in obtaining insurance. However, some
insurance companies have been reluctant to provide this
kind of insurance because rural recreation as a business
is relatively new and unfamiliar.
In seeking insurance, the operator should first consult
his regular agent. Even hesitant insurance representatives
will often agree to write the necessary insurance if the
operator has obtained his personal and other insurance
through the same company.
Because commercial recreation includes such a wide variety
and numerous types of businesses, including farm and
rural recreation, insurance rates for specific types of
recreation enterprises are not always comparable between
companies. Considerable savings can often be realized by
shopping for the desired insurance through several
agencies.
The operator should be certain that the insurance agent
understands the nature of his operation and all of
the activities and hazards. When a policy is written, the
operator should be sure he thoroughly understands any
limitations or exclusions of the policy. Sometimes
operators have obtained insurance at low cost, but later
discovered that certain hazards or facilities were not
covered by the policy.
Insurance premiums are rated according to the policy
coverage. A policy with 5/10/5 coverage will not cost as
much as one with 100/300/500. However, the cost difference
is not in direct proportion to the amount of coverage, and
may be only slight for some types of coverage. The amount
of coverage obtained will depend on personal preference
and what the operator can afford. A survey of recreation
enterprises revealed that the majority of operators choose
a coverage of $25,000 or more per person and $50,000 or
more per accident. Some have coverage providing for
$100,000 per person and $300,000 per accident. Insurance
companies often recommend a policy with 25/50/5 as a
minimum for all recreation enterprises.
**5/10/5 means that the coverage limits are $5000 for
bodily injury to one person, $10,000 per accident for
injuries to two or more persons, and $5000 for property
damage. 100/300/5 is $100,000 per person, $300,000 per
accident, $5,000 for property damage.
The following table shows the range of insurance costs
some operators in Michigan are currently paying for
liability protection for one year:
Type of
Enterprise Premium Cost Average Cost
Campgrounds $ 25-554 $164
Campgrounds with
Horseback riding 148-850 487
Picnic grounds 208-250 236
Fee fishing ponds 50-75 63
Skeet and target range 500 500
Hunting areas 75 75
This summary is only an indication of what an operator
could expect to pay for coverage in certain types of
enterprise. Different individual circumstances may effect
insurance costs. Liability insurance costs will vary
between enterprises according to the kinds of facilities
offered and the conditions under which they operate.
Before insuring an enterprise, most insurance companies
will survey the enterprise and its facilities. Each risk
will be judged on its own merits and the premium
established on the condition of the particular enterprise.
A policy premium is subject to adjushnent at the end of
the policy term. The final premium actually paid for some
policies will reflect the volume of business, or income,
during the policy period. For many activities, such as
camping, for which a fee is charged, the premium will
represent a percent of the receipts. Other methods of
premium rating may be a charge for each one hundred
persons admitted, a flat charge made per acre or square
foot area, or as a unit charge for objects such as boats,
docks, floats, or saddle animals.
SUMMARY
As a property owner, you must exercise reasonable care for
all persons entering your property. Legally, you owe the
greatest degree of care to the patron who has paid a fee
for the use of your facilities. For this patron, legally
classified as an invited, you must exercise reasonable
care to prevent injury and to maintain the premises in a
safe condition for his use.
MINIMIZE NEGLIGENCE
An injury to an invitee as a result of negligence in
exercising reasonable care could result in a lawsuit or
damage claim. Liability insurance should be obtained by
all operators, regardless of the volume of business
expected, for protection against shock losses and all
costs connected with an accident claim. A policy with a
minimum of $25,000/$50,000 bodily injury coverage is
recommended, although greater coverage is preferable.
The comprehensive general liability insurance policy and
the owner's, landlord's, and tenant's policy provide
liability protection for recreation enterprises. Be sure
that your insurance agent understands the nature of your
operation and that all hazards are covered.
SHOP AROUND
The availability and cost of insurance will depend upon
the type of enterprise and individual circumstances.
Suitable liability insurance is available from numerous
insurance companies. Since rates vary among insurance
companies, considerable savings can be realized by
comparing insurance rates and policies offered by several
agents or companies. You may then choose the insurance
policy which provides the best coverage at least cost.
Consider all factors that will affect the success of your
enterprise. Liability insurance is a fixed cost that
should be carefully considered in any feasibility study.
Obtain estimates of insurance costs before developing a
recreation area, or before adding any facilities so as to
avoid excessive insurance costs for the type of activities
planned. Consult a lawyer about liabilities that might be
incurred through operation of an enterprise or addition of
new facilities.
CONTROL YOUR RISK EXPOSURE
Liability risks and insurance costs can be reduced by
avoiding certain activities associated with high risk and/
or high insurance costs. You should carefully consider the
increased insurance cost and risk of injury created by the
addition of high risk activities.
The potential liability of an enterprise may be reduced by
specifically limiting the area intended for use by the
paying guest. Boundaries of recreation areas should be
well marked and guests should be warned that they are to
stay within these boundaries.
KEEP PREMISES SAFE
The premises must be maintained in a reasonably safe
condition. The addition of safety precautions and
elimination of hazards can reduce liabilities and the
chance of an accident. Not only are insurance companies
more willing to insure an enterprise which has certain
built in safety precautions, but some companies may grant
a premium discount after a period of demonstrated safe
operation.
Liability can be reduced if reasonable care is exercised
to warn visitors of any existing manmade or natural
hazards or unsafe conditions. Rules and regulations
pertaining to the use of a recreation area should be
posted to inform the invitee of the conduct expected of
him.
KNOW YOUR OBLIGATIONS
Be sure to understand and comply with all laws and
regulations applicable to the operation of your
enterprise.
You may wish to consider limiting the use of your
facilities to members only. If a membership organization
is properly administered, legal liability and premium
rates may be reduced considerably. This type of
arrangement has an additional advantage of reducing
administrative and maintenance costs.
This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
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