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Preamble:
WHEREAS the Government of Alberta has set an objective to significantly grow the province’s tourism economy by 2035, with an emphasis on expanding experiences in rural and non-core regions; and
WHEREAS small, experience-based tourism and recreation operators, including other nature-based or activity-based enterprises, are essential to achieving this growth; and
WHEREAS these operators are often small or family-run businesses operating in rural or remote areas and are disproportionately affected by liability insurance availability and affordability challenges; and
WHEREAS other jurisdictions have identified similar insurance availability issues affecting small tourism, recreation, and adventure operators, and have implemented structural policy or regulatory responses to address these challenges; and
WHEREAS some jurisdictions have enabled sector-based insurance pools, reciprocals, or captive insurance structures to address market gaps where private insurers are unwilling or unable to provide adequate coverage; and
WHEREAS Alberta now has a captive insurance regulatory framework and other policy tools that could support similar sector-based solutions [4]; and
WHEREAS without addressing liability insurance availability and affordability, provincial tourism growth targets, particularly in rural and non-core regions, will be significantly constrained regardless of marketing, infrastructure, or grant programs;
Operative Clause:
THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Alberta to develop a provincial strategy to improve the availability and affordability of liability insurance for small tourism and recreation operators; and
FURTHER BE IT RESOLVED that this strategy includes the evaluation and implementation, where appropriate, of the following measures:
Member Background:
Small tourism and recreation operators are a critical part of Alberta’s rural economy and form the backbone of many visitor experiences outside major centres. These include guided fishing and hunting outfitters, paddling and river tour operators, snowmobile and ATV tour businesses, horseback and trail-riding operators, small ski hills, tubing facilities, climbing parks, eco-tourism ventures, glamping and off-grid cabin operators, campgrounds, rural event venues, and small attraction-based tourism businesses.
These operations:
However, many of these operators are encountering increasing difficulty obtaining appropriate liability insurance. Reports from across Alberta and other jurisdictions indicate that small operators are facing limited coverage availability, unaffordable premiums, restrictive policy conditions, and cancellations following minor claims.
Operators in Alberta and across Canada have reported increasing difficulty obtaining appropriate liability insurance, including:
These challenges are systemic and affect a wide range of tourism and recreation businesses, particularly those that are experience-based, outdoor-focused, or located in rural areas.
Other jurisdictions have addressed similar challenges through structural approaches, including inherent-risk liability statutes, safety certification systems, group insurance programs, and pooled or captive insurance solutions where the private market is unable to provide adequate coverage.
The Government of Ontario enacted the Growing Agritourism Act, 2024, which introduced an inherent-risk liability framework and mandatory warning provisions intended to reduce legal uncertainty and improve insurance availability for operators [1].
Several U.S. states, including Colorado, have adopted inherent-risk legislation for recreational activities, such as the Colorado Ski Safety Act, which defines the responsibilities of operators and participants and provides legal clarity that supports the insurability of recreational businesses [2].
Jurisdictions such as the United Kingdom and New Zealand have implemented licensing, certification, and safety audit regimes for commercial adventure and recreation operators, creating standardized safety baselines that improve insurer confidence and market participation [3]; and
In Canada, industry associations such as outfitter and guide organizations in Alberta and British Columbia have established group insurance programs to pool risk and improve coverage availability for members in sectors where individual operators face difficulty obtaining insurance.
Alberta already has a captive insurance regulatory framework, which could support sector based insurance solutions if properly structured. Addressing insurance availability is a practical and necessary step to ensure that small tourism and recreation operators can safely and sustainably contribute to the province’s tourism growth goals.
REFERENCES
[1] Legislative Assembly of Ontario. Bill 186, Growing Agritourism Act, 2024 (Statutes of Ontario 2024, Chapter 38). https://www.ola.org/en/legislative-business/bills/parliament-43/session-1/bill-186
[2] State of Colorado. Ski Safety Act of 1979, Colorado Revised Statutes, Title 33, Article 44 (sections 33-44-101 to 33-44-114).
[3] United Kingdom, Activity Centres (Young Persons’ Safety) Act 1995 and Adventure Activities Licensing Regulations 2004; New Zealand, Health and Safety at Work (Adventure Activities) Regulations 2016 and the WorkSafe New Zealand Adventure Activities Certification Scheme.
[4] Government of Alberta. Captive Insurance Companies Act, in force July 1, 2022. https://www.alberta.ca/information-for-captive-insurers
RMA Background:
9-26S: Access to Liability Insurance for Agritourism Operators
THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) request the Government of Alberta to review Ontario’s Growing Agritourism Act and assess its relevance to addressing challenges faced by Alberta’s agritourism sector in accessing adequate liability insurance;
FURTHER BE IT RESOLVED that RMA support the GOA in developing an action plan to address barriers in accessing adequate liability insurance for agritourism activities.
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