Archive for Entertainment / Recreation
Adult Book Stores
Adult book stores are difficult risks to place because of the nature of their operations and the merchandise carried. They sell a wide variety of X-rated books, magazines, movies, videos, sex objects and devices. Most are located in run-down, inner-city areas or near highways, far from suburban shopping malls. Stores are usually congested, dark, have poor housekeeping, and cater to an unsavory clientele. The burglary and theft exposure is greater than for most retail classes. Rates are usually surcharged.
Adult Entertainment Film Production
Clients eligible for this coverage include producers of films, movies, and television programs geared exclusively to adults. Coverage can be for a short period of time, for a single project, or be issued on an annual basis for all projects and operations. Coverages include property, inland marine, general liability, automobile, and umbrella. Items that can be covered include rental equipment, owned equipment, props, sets, wardrobes, and negative and faulty stock. Cast extra expense and stunt coverages may also be needed.
Amusement Devices – Coin Operated
This class of business can be difficult to place. The popularity of coin-operated amusement devices has spread from amusement parks and carnivals to supermarkets, public parks, and shopping centers. Most standard markets are concerned with them because they are usually unattended and this concern has created a non standard market.
Amusement Parks and Fairgrounds
Permanent amusement parks and fairgrounds are easier to insure than movable, portable, and short-term carnivals and circuses. Property coverage may be a problem due to electronic devices, food service operations, lack of public fire protection, the potential for vandalism, and because many of these operations are seasonal. Liability coverage protects the amusement park owner or fairgrounds operator against claims for bodily injury and property damage that arise from premises and operations at specific locations.
Amusement rides range from relatively tame and mundane carousels and merry-go-rounds to breath-taking roller coasters and other thrill rides. Compared to coin-operated amusement devices, permanent, fixed-base amusement rides are more desirable insurance risks. Permanent rides are considered safer because they are not constantly being disassembled at one location, moved, and then re-assembled at a new location. In addition, the concessionaire or one of its employees usually attends to them and they must meet established minimum safety standards. These rides are also subject to various state safety inspections. Separate classifications and lower rates are available for kiddie rides and miniature train rides. Coverage is available for midway stands, games of chance, and shooting galleries. Some companies also provide property coverage on these rides.
Animal ride concessions are popular attractions and can be found at permanent amusement parks, zoos, carnivals, shopping centers, and church, civic, and fund-raising bazaars. The primary underwriting concern is injuries to young children that arise when careless attendants are combined with untrained animals.
Automobile and Snowmobile Racing Liability (Spectator)
Automobile racing events attract large crowds all over the country. This coverage protects the insured track or road course owner and/or the sponsors that conduct the event against spectator’s claims that arise from injuries sustained at the track or road course. Claims can arise from grandstands or bleachers that collapse; contact with racing vehicles; or contact with debris from an accident on the track or road course. Coverage does not apply to claims by participant drivers or owners of racing vehicles. This coverage is also available for race tracks and road courses that specialize in recreational vehicle racing, such as motorcycles and snowmobiles.
Billiard parlors and pool halls were trademarks of Main Street America years ago. Today, most standard carriers avoid this class of business because many establishments have substandard conditions, are in the inner city, serve alcohol, permit smoking, and have poor reputations. Insurers that write this class of business provide commercial general liability, liquor liability, and property coverages.
Bingo is a popular game of chance throughout the United States and Canada. Bingo was originally played only at church fairs, social gatherings, and at private schools in order to raise funds. Currently, many states have large-scale bingo games that operate several times a week in large halls under the control of state gaming commissions. Gaming laws vary from state to state but many charities sponsor such bingo games. Examples of sponsors are churches, schools, fraternal lodges, and other established charitable organizations. Extremely large bingo games held on Indian reservations are not subject to state laws. The sponsoring organization’s general liability policy may not cover the general liability exposures presented by bingo games at offsite locations because they do not fall within that organization’s normal scope of activities. This carve-out coverage fills that gap in coverage .
Boat rental may be for one hour, one day or for all summer. The potential for injury is significant because of the water exposure and inexperience of the operator. Many boat rentals are located in resort areas so that the liability exposure is limited to the summer months. The physical damage exposure is a year-round exposure because the boats must be serviced, repaired, and stored when they are not in use.
Bowling is a major recreational activity enjoyed by individuals, families, and groups. Bowling centers can be difficult property exposures to place because standard physical characteristics allow fires to start quickly and spread rapidly. Large, open, undivided areas, unprotected roof supports, large concealed spaces above ceilings and below the alleys, inadequate water supplies, and poor public fire protection in outlying suburbs or remote areas are the primary underwriting concerns. Lacquer, wax, and storage of other solvents add significantly to the fire load. Restaurantnd/or bar exposures can provide the spark that triggers a major loss.
Bungee Jumping Events
Bungee jumping is a popular activity. Participants leap from platforms, bridges, cranes, or hot air balloons attached by flexible rubber or synthetic bungee cords. Businesses engaged in this activity need general liability insurance to cover their liability for the event’s operation, as well as spectator and participant liability. They usually require that participants sign a waiver and release that acknowledges that bungee jumping is dangerous and that the operators are not responsible for anything that happens that is beyond their control.
Cable TV Liability
This is a media liability policy that insures the cable television industry. It covers claims that allege libel, slander or defamation, infringement of copyright, literary title or slogan, and piracy, plagiarism, idea misappropriation, and invasion of privacy that arises from the content of both original and other programming distributed over the system. In addition to covering the insured’s legal liability for these claims, it also covers the cable operators’ liability assumed under contracts with sponsors and advertising agencies, as well as the liability assumed under franchise agreements with towns and cities. Assumed liability claims are covered only if they fall within the scope of coverage.
Canoe Trips/River Rafting
Resort hotels, dude ranches, outfitters, and guides may provide water-based activities for their clients/guests. Canoe trips and whitewater or non-whitewater floating and rafting can be a relatively safe water activity. However, it can be extremely dangerous when it involves high water and whitewater rapids. Coverage for this exposure can be added to the hotel or resort policy, be part of a package for licensed guides and outfitters, or be a separate policy for organizations that offer river rafting and canoe trips.
Carnivals and Circuses
Carnivals and circuses are similar to amusement parks but they are much more difficult to place because they are mobile. They travel to and from a number of different locations, employ short-term employees (or hire short-term contractors or concessionaires), and must dismantle and reassemble rides and amusement devices at each stop. It is much easier to obtain liability insurance for sponsors of carnivals and circuses, such as churches, schools, municipalities, and fraternal organizations, than it is to cover the carnival or circus itself and its variety of concessionaires.
Casinos and gaming risks specialize in offering gambling for adults. They include full-facility hotel/casinos, and riverboats but also include pull tabs and video poker in bars, sports books, bingo halls, and slot machine parlors. Originally limited to the state of Nevada, casinos and gaming risks are now fixtures in many states. High limits crime coverage is often a particular concern because of the amount of cash kept on the premises.
Private owned caves are very popular in certain parts of the United States. Many are located near federal or state parks but are controlled by private operators. Most provide guided tours that can even include water-related activities.
Insurance coverage is available for theatrical groups, choruses, symphony orchestras, bands, and other performing arts organizations that depend on community support and involvement. Coverage includes commercial general liability, property coverage for equipment, props, and costumes, sets the theater owns, rents, or borrows, and accident/medical insurance for participants.
These risks cater to young children who receive early instruction in ballet, tap, and other dance techniques, youth who want to improve their dancing ability. and adults who want to learn ballroom and other types of dancing. The exposure varies based on the school’s specialty. Classic ballet and tap dance instruction is significantly different than large studios that offer all types of dance instruction from preschool to adult. Specialized programs that offer general liability coverage including liability for injury to participants are available. Coverage applies for classes both on and off premises along with other off-premises operations such as performances. Instructors’ professional liability coverage is usually included. Inland marine floaters are available to cover equipment taken off site. Accident/medical expense coverage may be available in conjunction with the package for schools.
No wedding is complete without a disc jockey! Disc jockeys may be employees of event planning companies. Others operate independently. The exposure is the audio/visual equipment, accumulated music in various media, amplifiers, and other specialty equipment.
Property and liability coverage for dive shops is difficult to place. The two most important components of surviving underwater are equipment and instruction. Errors or inadequacies in either can result in serious injury or death. Divers must receive instruction and be certified to dive with the equipment before they take their first dive. Dive shop instructors can provide that certification. The certificate verifies that the individual is capable of being underwater for long periods of time so it must be issued judiciously. Coverage for these shops includes commercial general liability and personal property coverage for the expensive merchandise and equipment held for sale or rent. On-site pools are covered. Professional liability insurance for diving instructors is available only to those with proper credentials.
Drag Strip Liability (Spectators)
Large crowds usually attend national drag racing championship races and other drag racing events held at various locations across the country. The same markets that insure spectator liability at automobile racetracks often write the liability coverage for these events as well. Underwriters require strict specific safety precautions and both guardrails and high fences to protect spectators from drag cars that go out of control.
Event Cancellation Insurance
There is a loss of revenue any time an event is cancelled. This insurance covers the revenue lost when an event is cancelled due to a covered peril or cause of loss that occurs. Optional endorsements are available that broaden the covered perils or causes of loss to include nonappearance and closure of the event facility.
Film and TV Producers E&O
This coverage is increasingly important for any entertainment production company. There is a very real possibility that a title used in a television series or film may infringe on the same or a similar title used in the past or that a motion picture’s plot might too closely follow a previously released show. Entertainment title and copyright research firms offer valuable assistance to carriers that handle film and television producers’ errors and omissions.
Film and TV Producers Indemnity (Cast Insurance)
Film and television producers indemnity insurance is better known as cast insurance. It protects a film or television production company against loss caused when filming must be abandoned because the star or a key character is injured, becomes ill, or dies. It also covers extra expenses incurred to complete a film if totally abandoning it is not required.
Film Schools Student Productions
Film schools are eligible for this coverage. Some programs provide coverage only if the school is part of a university. Coverage applies to student projects but only when the school sanctions them. Coverages include property, inland marine, general liability, automobile, and umbrella. Items that can be covered include rental equipment, owned equipment, props, sets, wardrobes, extra expense, and negative and faulty stock.
Film/Movie Production Insurance
Clients eligible for this coverage include producers of films, movies, television programs, and commercials that film either on location or in a studio. The time period for the coverage can be annual and include all operations or projects during that annual period. It may also be short term based on specific dates on the policy or have not dates but instead apply to a specific project. Coverage includes property, general liability, automobile, umbrella liability, and workers compensation. There is also coverage available for office contents, rental equipment, props, sets, wardrobes, negative and faulty stock, and third-party damage. The coverage territory can be broadened to include countries outside the United States, provided the production company is U.S.-based.
Foreign Film Production
Clients eligible for this coverage are U.S.-based producers of films, movies, television programs, and commercials that are filmed outside the United States. Coverages include property, inland marine, general liability, automobile, umbrella, and workers compensation. Items that can be covered include rental equipment, owned equipment, props, sets, wardrobes, and negative and faulty stock.
Golf Courses (Public)
Golf is one of America’s most popular recreational activities and golf courses are where many Americans spend much of their leisure time. Elaborate golf courses and clubhouses are found all over the country and these facilities represent large investments that need commercial insurance protection and risk management programs. A number of property and casualty packages currently available insure a wide range of property and liability exposures. They include specialty coverages such as liquor liability; directors and officers liability; property coverage for tees, greens, and fairways; and environmental impairment liability for application of herbicides and pesticides.
Golf Driving Ranges
There are many different ways to cover stand-alone golf driving ranges. Coverage on buildings, business personal property, and equipment is often written on a replacement cost basis for special causes of loss. Other property that can be covered includes signs, off-premises property, netting, fencing, night-lights, video equipment, and related structures. Loss of income coverage can be included automatically or as a separate coverage. Crime insurance is available. Liability coverage is provided and umbrella or excess limits are available.
Most not-for-profit sponsored haunted houses operate only during the Halloween season. However, a number of for-profit haunted houses operate year round. Most underwriters prefer one-story houses. The ones that not-for-profit groups sponsor are preferred.
Hole-in-one coverage is a form of prize indemnification insurance. It is purchased by sponsors of local golf tournaments who provide prizes to any golfer who scores a hole-in-one on a designated hole during the event. Prizes include new cars, riding lawnmowers, clothes, other merchandise, or cash. Insurance is arranged prior to the event and indemnifies the insured only if the hole-in-one is made and the prize awarded. It usually has a warranty to the effect that at least two tournament officials must certify the hole-in-one before it pays the insured’s loss. The warranty also usually requires that the hole must have been played according to the details in the agreement.
Horse and Carriage Risks
Horse-drawn carriage operators conduct rides through downtown hotel and theater districts and cater to tourists and business convention attendees. Liability coverage is available for carriages and sleds used in commercial livery businesses for touring or in special events such as weddings, after proms, or for convention tours. Underwriters are concerned about where carriages operate, the extent of lighting when operations are performed at night, and the routes used to get the horses from their stables to the operating area.
Hot Air Balloons (Liability and Physical Damage)
Recreational enthusiasts and companies use hot air balloons to provide rides for their customers. Some hot air balloons are used for advertising. Coverage is available for physical damage to the balloon and liability for damage to the property of others.
Inflatable Amusement Devices
Special events often include inflatable devices such as bouncy houses, slides, and other types that are designed for children and adults. Liability coverage is often provided by the vendor supplying the items but due to the potential for injury, supplemental coverage should be considered.
Inflatable Amusement Devices – Rental Operations
Bouncy houses and other types of inflatables are common attractions at birthday parties, community activities, and corporate picnics. Liability exposure includes not only the device itself but also the proper installation. Inland marine coverage may be needed to protect the specific items while off premises while property coverage could provide coverage while on premises.
Kart (Go-Kart) Liability
This coverage insures the liability of individual kart owners and karting enthusiasts. The bodily injury and property damage liability coverage provided protects the insured for hazards that arise out of its ownership, maintenance, or use of a kart, including racing, on private property in the United States and Canada.
A number of markets that specialize in sports and entertainment risks write insurance for miniature golf operations. Named perils coverage on greens is available in addition to property and liability coverage.
Motor Sports Liability
Coverage for motor sports events encompasses a wide variety of racing activities that take place on drag strips, oval and other types of tracks, and on road racing courses. The coverages needed and available include property, commercial general liability, spectator liability, owner and sponsor liability, and event participant accident coverage. Limits can be substantial.
Coverage is available for persons who engage in mountain climbing and for guides who take persons out to scale mountains or cliffs. The coverage provided applies to the gear and equipment needed to make the climb and commercial general liability coverage for the guides. Participant accident insurance may be arranged through special high-risk accident policies.
Clients eligible for this unique coverage include producers of films, movies, television programs, and commercials that are filmed on the water. Coverages provided include ocean marine hull and machinery, liability (P&I plus Jones Act), charterers’ legal liability, towers, and wharfingers liability. Items that can be covered include owned equipment and rental equipment. The coverage provided is for the actual boats where filming takes place plus barges, platforms, marinas, docks, wharves, and piers.
There are many different types of musicians. Each has exposures unique to his or her type of music, venues played, and management involvement. Musicians may sign with an agent or management firm that handles all arrangements and contracts. They may be part of a record label that distributes recorded music. Others operate independently, including producing and distributing their music. Coverage varies based on the type of exposure.
Negative Film Insurance
This coverage indemnifies the insured producer of commercial films and tapes for the loss of, damage to, or destruction of raw or exposed films or tapes caused by an insured peril. It is written on a risks of direct physical loss basis, subject to certain exclusions. The coverage usually excludes loss due to faulty stock, faulty cameras and sound equipment, and faulty developing, editing, and processing. However, coverage for these exclusions may be available by endorsement. Indemnification covers the extra expenses the insured incurs to complete photography or taping of production over and above actual or incurred expenses, or the actual expenditures it incurs to re-film or re-tape parts of the production made useless because of the negative film that was damaged. Coverage usually applies on a worldwide basis and is written for either a named production or on an annual reporting basis that covers all productions. This coverage is available for producers of commercial films, television films and commercial documentaries, training, or public relations films.
Outdoor Recreational Facilities
National and state parks provide individuals and families a variety of opportunities for outdoor camping and recreation. Outdoors enthusiasts fill privately owned camping grounds and hunting and fishing preserves each weekend as well as during the week. Insurance packages are available that cover liability exposures such as saddle animals, horseback trail rides, archery clubs, shooting ranges, hunting and fishing clubs, recreational trails, resort hotels and motels, dude ranches, winter recreational activities and canoe, kayak, river rafting, and whitewater rafting. Auto liability coverage is available for buses and vans that transport guests to canoe and river rafting sites and for cross-country trips. Some programs also cover buildings and equipment owned by hunting and fishing lodges, hotels, and motels. General liability insurance is also available for clubs and members who lease land from others for hunting and fishing. Coverage is also available for landowners who rent out their land for hunting.D527
Outfitters and Guides Liability
Outfitters and guides may work with a guest or dude ranch, may operate totally independently, or may be a combination of the two. They use their expertise in the outdoors to help their clients enjoy various types of outdoor adventures. Activities that outfitters and guides may support include hiking, hunting, white water rafting, mountaineering, snowmobiling, horseback riding, and other similar activities. Outfitters and guides may be subject to licensing requirements.
Paint Ball Game Centers
Paintball mimics combat war games used in military maneuvers. Fields that simulate actual combat conditions are set up for participants to “shoot” at other combat forces. The weapons used are guns that shoot paint spray or a paintball that marks the adversary’s uniform to show a successful hit. Centers may provide indoor fields and/or optional play for young children. Coverage applies to the liability of the center owners.
Commercial general liability coverage for parasailing operators applies for liability due to injury to an individual who is participating in a parasailing activity. It also covers the on-ground premises liability and spectator liability. The coverage provided applies to both bodily injury liability and property damage liability. The premium charged is based on receipts, subject to minimum premiums. Policy terms vary from three months to annual.
Party Equipment Rentals
Professional athletesâ€™ disabilities are distressing to the athlete involved and the financial well-being of his or her team. Coverage is available for the athlete as well as for the team. Coverage may be limited to only the teamâ€™s superstars or it may apply to all team members. The terms of the athleteâ€™s contract determine what coverage, if any, is available for a particular athlete.
Horse and greyhound racing are two types of animal racing events. The property exposure is significant due to hay and other combustible materials in barns and stables. Damage caused by animals and caused to animals is also a concern. The liability exposure is similar to other sporting events due to crowd control and bleachers, but animals in close proximity to the public create additional exposures. Many racetracks include betting activities that create significant crime and employee dishonesty exposures. There may be restaurant and liquor liability exposures on the premises.D633
Automobile racing events attract large crowds. This coverage protects the insured track or road course owner and the sponsors that conduct the automobile racing event against third-party claims from spectators that arise from their injuries sustained because of premises hazards. Examples of accidents that cause such injuries are collapse of grandstands and bleachers, contact with racing vehicles, and contact with debris from accidents during practice sessions or the race itself. Coverage does not apply to claims by participating drivers or owners of racing vehicles.
Recreational Clubs Liability
There are as many different types of recreational clubs as there are recreational activities. However, nearly every one involves some element of danger to club members or the general public even when all safety precautions are taken. Common prospects for this coverage include archery clubs, gun, trap, and skeet clubs, hunting and fishing clubs, swim clubs, and skydiving clubs. While certain liability exposures are common to all such risks, each must be underwritten separately and on its own merits.
Recreational Trail Operators Liability
Overcrowding in county and state parks led to opening recreational trails on private land. While many of these are for snowmobiles, trails may also be walking connector trails between state and local park areas or be bicycling or other types of recreational trails. Private landowners may charge a fee for use of trail areas. The persons who operate trails and charge fees assume considerably more legal responsibility than persons who just provide easements or limited access without charging a fee. Liability coverage is available for trail owners and operators for claims made by persons injured while using trails for which a fee is charged.
Retail Fireworks Sales
Fireworks sales occur year-round, not just the period around the Fourth of July. Some outlets are year-round retail operations that expand into temporary kiosks or tents prior to the Fourth of July holidays. Others operate only during the weeks leading up to the Fourth. All lines of business are considered hazardous.
River Boat Gambling Casinos
Marine insurers write insurance on this class of business on combined hull and protection and indemnity (P&I) forms. P&I covers liability for injuries to both passengers and crew along with damages alleged by others. Only a few underwriters are willing to assume liability on boats that can carry as many as 1,500 passengers. Tricky navigation in shallow and crowded waters such as the Ohio and Mississippi Rivers and the liquor liability exposure make this class difficult to underwrite.
Insurance companies that specialize in the entertainment industry write this class of business as short-term indoor or outdoor special events. Coverages available include inland marine, nonappearance, event cancellation, auto, workers compensation, venue liability, bodily injury liability, and personal and advertising injury liability. Underwriters are extremely cautious when they consider heavy metal and rap concerts. Coverage can also be arranged for touring groups.
Rodeos and Horse Shows
Rodeos and horse shows are difficult risks to place from a liability standpoint. As in other events that attract large numbers of spectators, the catastrophe exposure is always present because crowd behavior is difficult to predict and because of the potential for serious injury to many people because of fire, windstorm, or collapse of temporary seating or temporary stages. The ever-present danger of “runaway” wild bulls or bucking broncos in the case of rodeos, roundups, or Wild West shows must be added to these exposures. Coverage is usually written for the specified time period of the show, including parades and other special events to publicize the event. Coverage usually does not apply to injuries suffered by contestants and/or participants.
Saddle Animal Liability
There are many prospects for this specialty coverage such as riding academies, resort hotels and motels, equestrian camps, riding stables and clubs, horse shows, and fairs. While coverage for saddle animals is part of the CGL, it is typically excluded by endorsement when an exposure is revealed. This coverage is tailored to the specific needs of the entity that purchases it, which can be beyond that which would have been available under a CGL such as participant liability, products, premises, and others.
Short Term Productions
Producers of films, movies, television programs, and commercials that take no more than 60 days to produce and whose budgets are under $1 million are eligible for this coverage. It includes property, inland marine, general liability, automobile, umbrella, and workers compensation. Items that can be covered include owned equipment, rental equipment, props, sets, wardrobes, negative and faulty stock, and extra expense. Cast extra expense and stunt coverages may also be needed.
Skateboard Parks Liability
Skateboard parks can be public, private, or admission-paid facilities. Public skateboard parks are often unsupervised. The parks can be indoor or outdoor but all provide a variety of obstacles that can provide challenges and the opportunity to achieve heights while skateboarding. Participant liability is the primary concern due to the age of the participants and the potential for serious injuries due to heights and jumps. Parks that organize competitive events need additional coverages.
Skating Centers (Roller and Ice)
Skating rinks, like other public places of amusement such as amusement parks, ballparks, ski areas, and swimming pools present serious liability exposures due to injuries to participants and spectators. The property exposures are also significant due to large open areas and the equipment needed to maintain the rinks.
Skiing is a dangerous sport. Individual skiers are primarily responsible for their own safety but court decisions have placed some of the responsibility on commercial ski operations. In particular, the ski operator is responsible for safe transit on lifts up the mountain, while the skier is responsible for his or her own descent. Operatorsâ€™ responsibilities also include maintaining slopes and trails. Other liability exposures are premises liability in lodges, shops, and restaurants. In addition, ski patrols and ski instructors present significant workers compensation exposures. Property exposures are also a concern because of cooking and ski repair exposures combined with very limited public fire protection.
Special Events Liability
This insurance provides third-party liability coverage for short-term special events where large groups of persons who are gathered together present catastrophe potential. Town celebration committees or merchants associations that sponsor centennial or sesquicentennial celebrations, Fourth of July celebrations, and local festivals need this coverage. These events may include automobile or horse racing, parades, fireworks displays, fairs, picnics, dances, concerts, and many different types of sporting events. Other types of special events are written for the eventâ€™s sponsor or producer. This includes rock festivals and concerts, antique car shows, boat and travel shows, horse shows and rodeos, prominent objects like balloons suspended over cities for promotional purposes, stockholders meetings, and religious revivals. Premises liability in rental halls and arenas as well as outdoors operations that are necessary and incidental, such as erection of grandstands are covered as well as libel, slander, or defamation by a performer, and products liability that arises from the sale of food or souvenirs. Participant accident and medical expense coverage for volunteer workers at charitable fund-raising events; expenses and profit coverage that protects sponsors of conventions and shows; exhibitor transit-premises coverage that protects exhibitors’ goods while on display at a show and in transit; and prize indemnification coverage, including golf hole-in-one and bowling a perfect score coverage are other types of special events coverage.
Sporting Events Sponsors
General liability insurance that covers premises and participants’ liability risks is available to sponsors of sporting events. Eligible sports include softball, baseball, volleyball, youth soccer, and basketball. Special events such as walkathons, running, and bicycling competitions can also be covered. Spectator liability is excluded. Vendors may be added as additional insureds.
Sports camps are popular places for young boys and girls to go to learn basic and advanced skills of tennis, baseball, basketball, football, soccer, and other individual or team sports. Liability coverage, including abuse and molestation, is an important coverage for the camp director and staff. Accidental death and dismemberment and accident medical expense coverage is often considered mandatory for campers.
Insurance coverage on summer camps is usually written on an account basis. Property coverage on buildings, contents and service equipment, commercial general liability, auto liability, and special campers’ accident and sickness coverages are written. High liability limits are recommended and tuition fees, extra expense, and theft insurance should be considered. Medical expense, accident insurance, and tuition refund coverage is available to reimburse the camp owner or operator for medical expenses incurred because of sickness, accident, or death of campers or individual or group withdrawal because of epidemic, flood, or other stated reasons. Abuse and molestation coverage should also be obtained.
Summer Recreational Activities
The Insurance Marketplace lists a number of specific summer recreational activities but a few may be omitted. This category may apply if a specific summer activity or function is not listed elsewhere. These markets provide coverage for a variety of summer recreational exposures:
Tennis and Racquetball Centers (Indoor)
Indoor tennis establishments have significant property values because of the size of the building required to accommodate the sport. These property assets need to be covered. Other needed coverages are loss of business income and general liability. Some insurers have developed package policy programs that cover property and liability hazards for free-standing buildings or tennis centers that are located in other facilities. Air-supported structures that can be taken down in warmer weather are more difficult to place.
Theater groups can be professional organizations with paid performers or community-based troupes with volunteer performers. Each has similar liability exposures for the audience, the potential for infringement on copyrights, and exposures to owned props and costumes. Workers compensation is an issue for professional groups. Professional groups may also have exposures related to transportation and travel.D701
Video Games/Arcade Centers
This is general liability coverage for owners of video game and arcade centers. Coverage applies to injuries to game players and other non-employee persons on the premises. Some underwriters include the liability coverage in a package policy, with property coverage usually written on an “all risks” type basis, including replacement cost valuation on property. Loss of income and transit coverages are also available. Underwriting factors that must be considered are the premises location, its condition, staffing, and management experience, and stability.
Water Parks Insurance
Water parks are water-oriented amusement parks. A water park may be a stand-alone park or be part of a municipal park or a for-profit amusement park. They may include water slides, water tunnels, swimming pools, wave pools, artificial rivers, and other attractions.
Water Sport Rentals
Renting watercraft is a popular alternative to ownership. The types of watercraft rented range from personal watercraft such as jet skis to houseboats. The coverage provided is for the benefit of the rental unit’s owner, not the renter. Hull damage, water sports liability, and other liability coverages are available. Underwriters require a written rental agreement that contains appropriate hold harmless language.
Yachts and Pleasure Boats
Package-type policies are available for most types of power and sailing vessels. Property coverage is usually provided on an “all risks” type basis for physical damage (hull) coverage. Liability is provided under protection and indemnity type coverage. Passenger, water skiing liability and property coverage on equipment and trailers are optional coverages that are available. Coverage for boat trailers, personal effects, medical payments, and uninsured boaters are other important available options. Watercraft more than 25 years of age is usually written under separate antique and classic boat programs.