Safehold Special Risk has pulled out of Oregon, saying it was losing too much money following a 2014 ruling that made it easier to sue ski resorts for negligence.
The Oregon Supreme Court decision weakened the power of liability waivers, increasing the legal risk for ski resorts and their insurers. Safehold has called Oregon an “extreme outlier” in how it handles negligence claims against ski resorts.
Protect Oregon Recreation, an industry advocacy group, described Oregon as unique among western states in its treatment of liability waivers.
Safehold, which operates in dozens of states, said Oregon accounted for half of its payouts between $1 and $10 million.
Although Mt. Ashland Ski Area doesn’t use Safehold, general manager Andrew Gast said the company’s exit is a bad sign for the Oregon ski industry.
“Our fear is that — one, we're just going to keep paying more and more for the insurance that we already have,” Gast said. “And two, that we get to a point where there is no insurance that we can get.”
Gast said insurance costs for the mountain have increased 129% in the last 12 years, and he expects another hike of up to 30% this year. If the last insurer leaves the state, he explained, the ski area would have few options.
“It is literally required in our permit with the Forest Service that we have to have insurance,” Gast said. “So aside from not being a smart business choice, it would be illegal for us to open without insurance.”
He recently testified in favor of a Senate Bill 1196, which would bring Oregon's liability laws more in line with other western states. Supporters say the bill would make waivers more enforceable and reduce the risk for ski resorts and insurers. Opponents of the legislation say it would make suing for negligence too difficult.
The state legislature has attempted to pass similar legislation several times before. The current legislative session ends June 29.
