No single national license covers a campground or RV park. States, counties and cities license and permit parks, and the rules differ, so list every approval the park operates under and ask each issuer what happens at a sale. No bond is required of every campground, but contracts with landowners, lenders, franchisors and vendors often dictate insurance, and guest agreements allocate risk. This guide is for new owners who need to know which paper to find and where insurance fits.
The short answer
- Licenses are local. A state, county or city license is usually joined by separate approvals for drinking water, wastewater, food, pools and liquor.
- Transfers are not automatic. Ask each issuer in writing whether a license or permit moves to you, needs reissuing or needs consent, before closing.
- Contracts set insurance. Land leases, federal land permits, franchise agreements, lenders and event vendors can each require specific coverage and wording.
- Bonds are not universal and are not insurance. A surety expects to be repaid, and no bond is required of every campground.
Which licenses and permits does a campground typically need?
The mix depends on the state, county and what the park does. Confirm each item with your authorities. Not every park needs every item.
| Approval or paper | Usually issued by | Insurance link | Ask before closing |
|---|---|---|---|
| Campground license | State agency or local health department | Ask whether the issuer wants proof of insurance with the application or renewal | Is it in the seller's name, and does it transfer? |
| Drinking water system approvals (own well) | State drinking water agency or the Environmental Protection Agency (EPA) | Fines and compliance costs are generally not what a standard policy pays | Testing history, sanitary survey (a state water system inspection), open violations |
| Septic, dump station, store, food and pool permits | County, state or local health authorities | Pollution and products coverage questions | Last inspection and any corrective orders |
| Liquor and propane licenses | State alcohol and fuel or fire authorities | Liquor liability and propane terms for the refill area | Which entity holds each, and do refills or only exchanges take place? |
| Zoning, conditional use or non-conforming status (the park is allowed because it predates current zoning) | City or county planning office | Ordinance or law coverage, where it is added or built in, can pay added cost to rebuild to current code. The standard form's built-in amount is small, and no policy can restore a use zoning will not allow | Does the use survive a sale, and can the park be rebuilt as is? |
| Federal or public land permit | Land agency (for example, the Forest Service) | Forest Service permits call for the United States as additional insured. Other agencies differ | Transfer clause, in writing |
States structure this differently: Michigan law bars operating a campground without a license issued by the state department, its agent or a designated local health department, subject to the statute's exemption, and Maine lists campgrounds among establishments needing a state health license. See what insurance you need to get a business license.
Does a license or permit transfer when you buy the park?
Do not assume it does. No single rule covers every license and permit, so ask each issuer how a sale is handled. Parks on public land operate under a permit or concession contract, so its transfer clause matters first.
A hypothetical example. A buyer closes on a lakeside park and then learns the state campground license and the liquor license are in the seller's name. The seller says the licenses will "follow the sale." The buyer's broker asks which entity is on each policy, and whether the liquor liability policy matches the entity that will hold the license. The right order is each issuer's written change-of-ownership steps before closing, then policies aligned to the answer. For approvals in the seller's name more broadly, see buying a business in a licensed trade.
Which contracts carry insurance requirements?
- Land or property leases. If the park leases its land, or the land sits in a property company that leases to the operating company, the lease usually sets insurance wording, such as who is named, what limits apply and who insures buildings and improvements. Read it with your attorney and match the policies to it.
- Land permits. The Forest Service says any policy covering use of National Forest System land should name the United States as an additional insured, and permits generally are not issued until a certificate of insurance (COI) is on file.
- Franchise or affiliation agreements. Franchise systems commonly require the franchisor to be named as an additional insured. A standard endorsement (called grantor of franchise) can cap what the insurer pays at the limits the agreement states, so one franchise law firm suggests the agreement ask for "a minimum of" stated limits. A brand's requirements sit in its franchise disclosure document. See buying a franchise resale.
- Seasonal site agreements, registration terms and park rules. They allocate risk with guests. In some states, waivers may not release gross negligence, and minors are a special concern, so ask counsel what a waiver can release. Missouri's statute (Revised Statutes of Missouri section 537.328, effective August 28, 2021) limits the liability of private campground owners, for campgrounds with five or more campsites including RV parks, for inherent risks of camping. That protection does not reach intentional harm, willful or wanton disregard or failure to use ordinary care. The statute also requires a set warning notice in written contracts. Other states differ.
- Vendor and event agreements. Contractors, caterers and wedding vendors can create claims you did not cause, and an insurer may ask whether the park requires evidence of their liability insurance, and at what limits. See checking customer contracts against your policies.
Additional insured, primary and noncontributory and waiver of subrogation requirements differ by landowner, franchisor and customer, so read each contract and do not copy a number. See when contracts require coverage you do not have for mismatches.
What does your lender require?
Under the Small Business Administration (SBA) rulebook, a campground is eligible only if, among other conditions, more than half of the prior year's revenue comes from guests who stay 30 days or less. For loans numbered on or after October 1, 2026 the rulebook is Standard Operating Procedure (SOP) 50 10 8.1, and earlier loans follow SOP 50 10 8. The test is covered in how SBA 7(a) acquisition loans work. When real estate is collateral and the park has fuel tanks or does vehicle repairs on site, the environmental review starts with a Phase I report (an environmental site review).
If a property holding company leases to the operating company, the policies must match the entity structure; see insurance after you buy a campground or RV park and the SBA lender requirements guide.
Do you inherit the park's water system problems?
The water system comes with the park, and so does its compliance history. Federal rules treat a campground with its own well as a public water system if it has at least 15 service connections or regularly serves at least 25 people daily for at least 60 days a year. One 2025 EPA order against a campground water system bound the respondent's successors and assigns, but whether any order binds a buyer depends on its terms and your deal structure. Ask for the compliance history, and have counsel read any open order.
Do campgrounds need bonds?
No bond is required of every campground. Some federal land concession permits may require bonding, so read yours, and liquor license bonds and other surety requirements vary by state. A bond is not insurance for the park: if the surety pays a claim, it expects you to repay it (see surety bond vs liability insurance). A seller's bond usually does not follow you, as this guide on bond transfers explains.
How should you handle certificates of insurance at the park?
A certificate is a summary, not the policy (why a certificate is not coverage). Three habits work for parks:
- Collect certificates from vendors and event hosts before they work on site (event venue certificates).
- Track expirations in one list (COI tracking).
- Review certificates the seller issued, because they may still name the seller's policies (certificates the seller issued).
Before you close, list every license, permit, bond and contract with its issuer, expiry date, transfer rule and insurance wording. Your attorney handles the legal reading, and Morrow can compare the insurance wording with your policies.
Keep reading
- Just Bought a Campground or RV Park? What Insurance Do You Need?
- Campground and RV Park Coverage Gaps New Owners Find
- Best Insurance Broker for a Campground or RV Park: How to Choose
- Do Surety and License Bonds Transfer When You Buy a Business?
- Set Up Certificate Tracking in Your First Month as Owner
- All guides for new business owners
Frequently asked questions
Do I need a license to run a campground?
Usually some approval from a state, county or city, but there is no national license. Michigan, for example, bars operating a campground without a license from the state or a local health department, and Maine lists campgrounds among establishments needing a state health license, so the issuing office and the rules vary by state. Ask the seller for current licenses and inspection reports.
Does the seller's campground license transfer to me?
Not automatically in every case. Whether a license or land permit transfers, needs reissuing or needs consent depends on the issuer. Ask each issuer in writing before closing, and have your attorney reflect the answer in the purchase agreement.
Do I inherit the seller's water system violations?
It depends on the order's terms and on whether you bought stock or assets. Ask for the compliance history, sanitary survey and any open notices, and have your attorney read them.
Does a campground need a surety bond?
No bond is required of every campground. Some federal land concession permits may require bonding, and some state or local approvals may. A bond protects the obligee, not the park. Check each permit and approval.
Can my loan affect what insurance I must carry?
Yes. A lender sets insurance requirements in the loan terms, and an SBA loan has its own list. Ask your lender for the written list.
References
- SBA: SOP 50 10 8.1, Lender and Development Company Loan Programs (effective October 1, 2026; applies to loans numbered on or after that date)
- eCFR: 40 CFR 141.2, public water system definitions
- EPA Region 8: Administrative Order, Docket SDWA-08-2025-0045 (September 10, 2025)
- Michigan Legislature: MCL 333.12506, campground license required
- Maine Legislature: Title 22, section 2492, licenses for establishments
- USDA Forest Service: Insurance Requirements for Special Use Permits (Klamath National Forest)
- Fox Rothschild: Are You Certain Your Franchise System Is An Additional Insured? (January 2016)
- Missouri Revisor of Statutes: RSMo 537.328, private campgrounds, immunity from liability for inherent risks of camping
Just bought a business? Get your insurance reviewed.
Send Morrow the declarations pages, loss runs and key contracts you inherited. Morrow can review them against the business you bought, flag gaps and request quotes where it makes sense. Any new terms depend on carrier underwriting.
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This article is general information, not legal, tax or financial advice, and not a coverage determination. Coverage depends on the actual policy wording, carrier underwriting, your purchase agreement and your contracts. Ask your attorney and accountant about deal and legal questions.