When Public Lands Close, Will Your Policy Cover Lost Revenue?

Public lands drive the outfitting and guiding industry. But what happens if the Forest Service suddenly closes a river, trail, or put-in point you rely on? Will your business income insurance replace the lost revenue?

The Short Answer: Not Usually, Unless There’s Damage

Many outfitters are surprised to learn that standard business income insurance only pays when your property suffers direct physical damage from a covered cause, such as a fire or storm. If a wildfire damages your boathouse and you have to shut down, your policy may cover the loss.

But if a government agency closes public lands while your property remains untouched, coverage under most standard policies typically does not apply.

Common Closure Scenarios and Coverage

• Wildlife Warnings: Lost revenue is not covered if access closes due to bear activity and property remains undamaged.
• Smoke/Air Quality Alerts: Closures caused by smoke or poor air quality do not trigger coverage when the premises are unaffected.
• Low Water Conditions: Revenue loss is not covered if drought or low water forces a shortened season.
• Landslides/Rockslides: Standard policies exclude landslides. Even if a landslide blocks access or damages property, business income coverage applies only with a specific earth movement endorsement.
• Wildfire Nearby (No Direct Damage): Closures due to nearby wildfire do not trigger standard business income coverage if the business itself is undamaged.

What About Civil Authority Coverage?
Some policies include a limited “civil authority” extension, which covers income loss if a government order (like from the Forest Service) prohibits access to your undamaged premises due to physical damage nearby from a covered peril. Even then, the requirements are strict — the waiting period is usually 72 hours, and coverage is limited to a few weeks.

Don’t Let Coverage Gaps Catch You Off Guard

Here are a few proactive steps to protect your business:

• Review your policy so you know what’s covered, and what isn’t
• Discuss your exposures with your agent to plan for scenarios common in your area
• Prepare financially for operational interruptions that insurance might not cover

A Solution for Today’s Outfitters

At CBIZ Adventure Sports, we understand that “business as usual” is rarely guaranteed for outfitters who depend on public lands. That’s why our insurance program offers enhanced coverage options, including broader protection for certain government closures and access issues that go beyond standard business income forms.

Learn more about our overage and how it can help protect your business when the unexpected happens. Contact us to get started.