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What happens when an entire industry
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can't get insurance? Oregon's ski
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resorts are facing extinction, and they
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might just be the first domino to fall.
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Could your favorite activities be next?
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Oregon's ski industry faces an
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existential threat. The $4.6 6 million
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lawsuit against Hudoo Ski Area
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represents just one battle in a decadel
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long war that has intensified the
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state's liability insurance crisis. This
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crisis extends beyond winter sports.
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Music venues, event organizers, and
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other recreational businesses across
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multiple states are experiencing similar
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pressures. The Hudoo lawsuit originated
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from a 2021 incident where a 4-year-old
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girl sustained serious injuries after
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colliding with another skier in the
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terrain park. The lawsuit alleges that
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staff removed a safety barrier, altering
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traffic patterns and increasing risk.
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This case represents a broader legal
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trend that began with the 2014 Bagley
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Versamount Bachelor decision which
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rendered liability waiverss
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uninforceable in Oregon and opened the
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floodgates for ordinary negligence
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claims. The insurance industry has
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responded dramatically.
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Safehold Special Risk, one of only two
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insurance providers for Oregon ski
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resorts, has already withdrawn from the
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market, citing the state's legal
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Mountain Guard, now the sole remaining
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insurer, has warned that one significant
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case could force them to exit as well.
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As Mint Ashlin's general manager, Andrew
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Gast, testified, "Without insurance, we
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can't operate. Period." The liability
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insurance crisis has spread to the music
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and entertainment industries. In Austin,
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Texas, music venues face six-f figureure
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premiums for basic coverage due to
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rising claims, open carry laws, and a
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shrinking pool of willing insurers.
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Small venue owners report needing to
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sell more beer than is humanly possible
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just to cover insurance costs. Even
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Broadway productions with complex
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choreography or stunts face rising
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workers compensation issues. Neighboring
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states offer contrasting approaches.
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Washington and Idaho enforce liability
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waiverss protecting their recreation
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industries from Oregon's current
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Idaho Supreme Court faced a similar
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challenge after a fatal collision at Sun
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Valley, but ultimately reversed its
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decision, reinforcing liability
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protections and stabilizing its outdoor
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recreation market. Oregon's attempts to
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pass legislation like Senate Bill 1196,
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which would restore liability waiverss
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for ordinary negligence, have failed.
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Lobbyists and accident victims argue
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such reforms would undermine consumer
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protections. The postcoid revival of
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live entertainment has been hampered by
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insurance challenges. Some carriers
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refuse to underwrite risky elements like
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acrobatics or drone use while festivals
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face higher premiums due to crowd
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control risks and extreme weather
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This creates a vicious cycle. Rising
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liability costs reduce insurer
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competition, leading to even higher
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premiums that push businesses to
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financial breaking points. Ski resorts,
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music venues, and summer camps are all
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vulnerable. Who might be next? Oregon
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still has options, but time is running
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short. If mountain guard withdraws, all
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ski operations in the state could cease
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by next winter. While other states have
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adjusted their legal frameworks, Oregon
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has yet to demonstrate the political
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will for swift action.
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The pressure continues to build on
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resorts, lawmakers, insurers, and
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recreational enthusiasts alike. This
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crisis may be most visible on snowy
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peaks today, but its effects are already
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spreading to music venues and festival
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grounds nationwide. The key takeaway is
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clear. Oregon's ski industry faces
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extinction due to a liability insurance
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crisis triggered by the 2014 Bagley
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Versamut Bachelor decision that made
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liability waiverss uninforcable.
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With only one insurer remaining and
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premium skyrocketing, ski resorts may be
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forced to shut down entirely if Mountain
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Guard exits the market.
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This isn't just a ski industry problem.
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Music venues, live events, and other
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recreational businesses across the
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country are experiencing similar
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insurance challenges.
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Without legislative action to restore
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liability waiverss for ordinary
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negligence, Oregon's outdoor recreation
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economy faces a precarious future that
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could spread to other states and
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Thank you for watching our coverage of
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Oregon's liability insurance crisis. As
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this situation continues to unfold,
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we'll keep you updated on how it affects
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ski resorts and other recreational
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businesses across the country.
