Oregon Lawmakers Weigh Liability Waiver Bill for Recreational Sector
Oregon lawmakers are considering a proposal that could significantly alter the landscape of liability insurance for ski resorts and other recreational businesses in the state. The move comes on the heels of a major insurance underwriter’s announcement to withdraw from the Oregon market, citing legal and financial pressures that have made it unsustainable to continue coverage.
Senate Bill 1196, currently under consideration, would allow recreational businesses to require adults to sign liability waivers for claims involving ordinary negligence. However, these 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.
While the discussion has centered around ski resorts, the bill’s provisions would have broader implications across the recreation sector, encompassing both indoor and outdoor facilities. Proponents argue that this legislation is crucial for bringing stability to a liability insurance market that has seen a decline in insurer participation.
Safehold Specialty Risk, a managing general underwriter with decades of experience working with Oregon ski resorts, announced its decision to cease offering coverage in the state without legal reforms. William Curtis, senior vice president and program manager for resorts and recreation at Safehold, attributed the company’s decision to the state’s current legal framework, which he described as unsustainable for general liability underwriting.
The 2015 Oregon Supreme Court decision in Bagley v. Mt. Bachelor has been cited as a pivotal factor in Safehold’s exit. This ruling limited the enforceability of liability waivers for inherent risks, overturning nearly three decades of legal precedent. According to Curtis, the ruling led to an increase in claim activity and settlement payouts, resulting in losses for insurers and contributing to higher premiums and reduced 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 explained. He emphasized that for general liability insurance to remain viable, the legal system must support both the doctrine of inherent risk and the effective use of liability waivers when the duty of care has been met.
The proposed legislation aims to address these concerns by allowing liability waivers for ordinary negligence claims, potentially stabilizing the insurance market for recreational businesses in Oregon.
