An inquiry into insurance issues faced by small businesses has been told the caravan park industry could be “brought to its knees” by a lack of affordable insurance cover.

The Australian Small Business and Family Enterprise Ombudsman called an inquiry earlier this year to investigate insurance practices and cover availability after receiving complaints about policy denials and soaring prices.

Now the Ombudsman, Kate Carnell, has published 26 submissions in advance of a final report that should be completed before the end of the year.

Caravan park businesses and associations say that a lack of available insurance and spiralling prices could spell the end of a multi-billion-dollar industry which is a huge employer in regional areas.

“Access to affordable and adequate insurance coverage is crucial to the ongoing viability of the sector,” the Caravan Industry Association of Australia says.

“However, in recent years caravan park operators are increasingly expressing their difficulties in obtaining coverage, excessively high premiums, limitations on policy extensions and reduced options in the market.”

Big4 Holiday Parks says areas with increased natural disaster risk are particularly hard hit.

“If this issue is not fixed in the next couple of years, it is likely the industry will be brought to its knees with investment stopping and facilities and activities being removed,” its submission says.

The submissions show other tourism-focused sectors across the country are also suffering, with the future of adventure tourism under threat.

Queensland remains an area of concern, with the Queensland Hotels Association warning that hotels “large and small” are facing difficulties.

And the owners of Hamilton Island put forward a submission outlining a 300% insurance increase in four years from $1.7 million to $5.2 million.

They join other Queensland submissions in calling for further investigations into a government-backed cyclone reinsurance pool.