Oregon lawmakers are considering a proposal that could alter the way liability insurance is provided to ski resorts and other recreational businesses in the state, according to a report from AM Best.
The move follows a major insurance underwriter's announcement of plans to withdraw from the market, citing legal and financial pressures.
Senate Bill 1196 would allow recreational businesses to require adults to sign liability waivers for claims involving ordinary negligence. The waivers would not apply to incidents involving gross negligence or intentional misconduct.
The bill includes an emergency clause and would apply retroactively, allowing it to take effect immediately if signed into law.
Although ski resorts have been the focus of much of the discussion, the bill’s provisions would apply more broadly across the recreation sector, including both indoor and outdoor facilities. Supporters say the legislation aims to bring stability to a liability insurance market that has seen a decline in participation from insurers.
Safehold Specialty Risk, a managing general underwriter that has worked with ski resorts in Oregon for decades, said it will not continue offering coverage in the state without legal changes. William Curtis, senior vice president and program manager for resorts and recreation at Safehold, said the company’s decision is tied to the state’s current legal framework, which he described as unsustainable for general liability underwriting.
In a letter to Mt. Hood Meadows, one of the resorts it has insured for 12 years, Safehold pointed to the 2015 Oregon Supreme Court decision in Bagley v. Mt. Bachelor as a key factor in its exit. The ruling limited the enforceability of liability waivers for inherent risks, overturning nearly three decades of legal precedent. Safehold said the ruling led to an increase in claim activity and settlement payouts, which in turn drove losses for insurers and contributed to higher premiums and a decline in market capacity.
“Our historical results from Oregon since 2015 have had a profoundly negative impact on our program’s ability to meet fundamental financial models required to underwrite general liability insurance for ski resorts in Oregon,” Curtis said.
Curtis added that for general liability insurance to be viable, the legal system must support both the doctrine of inherent risk and the use of liability waivers when duty of care has been met. Without that, he said, coverage becomes difficult to sustain.
