SPECIALTY LINES MARKETS


LEISURE RISKS

"Pay for play" facilities provide ample coverage opportunities

By Larry France

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The economy is good, population is growing, disposable income is on the rise, and everybody likes to have fun. If you ever had to stand in line at an amusement park you will attest to the fact that "pay for play" facilities are busy places. This niche is varied in the type of risks that fall into it and programs that answer the coverage issues.

Classes that comprise the leisure industry entries are: amusement parks, amusement rides, animal rides, bowling centers, campground owners, canoe trips/river rafting, golf driving ranges, horse & carriage rides, hot air balloon rides, miniature golf, paint ball centers, tennis & racquetball centers, trail rides and water parks.The markets listed provide coverage for one or more of these risks. If you have questions consult our Web site (www.insurancemarketplace.com), click on the type of risk and your state. Available markets will be listed.

Overall, these classes of business contain several similarities. Financial status is very important. Pro formas and financial statements may be required and be an underwriting factor for acceptance. Especially true in the larger facilities is the need for established procedures regarding safety regulations, evacuation plans, and first aid administration. These should be in written form and, if possible, accompany your submission.

Most of the leisure classes also will contain exposures of the same nature. Snack bars, cooking facilities, and liquor exposures can be found in amusement parks, bowling centers, miniature golf, and tennis and racquetball centers.

Workers compensation is showing signs of firming in several geographical regions, not only in leisure risks but also in many classes of business. A few markets will write most of the "pay for play" workers compensation on a stand-alone basis. One of those is HPP Group. They specialize in monoline workers compensation for the leisure and nonprofit social organizations. According to Ralph Blust, senior vice president of High Performance Programs Group, they write in all states except monopolistic states. The minimum premium is $2,000. Coverage is written on a guaranteed cost basis. Blust states that the qualifications are three years in business, prior workers compensation coverage for three years, and maximum experience modification of 1.30. "We are seeing an unprecedented number of submissions in recent weeks," he comments.

Driving ranges should take precautions against having more than one party on the tees at a time. Proper spacing between drivers also can prevent injury to a nearby participant.

In preparing a submission for "pay for play" risk, diagrams, photos of signage, copies of employee manuals, and brochures will assist in the placement of your client.

Loss control measures play a big part in minimizing claims with leisure risks. Up-to-date equipment maintenance records will give an underwriter a good picture of the safety concerns that the organization has. In most states, a state inspector must inspect amusement park rides. Failure to do so can result in fines, closing of the park or possible civil or criminal prosecution. A client who is a member of a national industry association may be eligible for credits regarding the liability portion due to membership requirements.

Other considerations include audit or non-audited policies, policy aggregate provisions, bodily injury deductibles, and inclusion of volunteers where applicable. If your client has special promotions on the Fourth of July, for example, the general liability policy may not respond to special events or fireworks exposures.

Leisure prospects can be a good source of business for young agents. Most cities have bowling centers, tennis or racquetball centers, driving ranges and miniature golf courses. If they develop a good rapport with a market that can supply coverage and guidance in the "pay for play " arena, this could add to the agency revenue outside Main Street business. It also can add some excitement in prospecting.

The following markets have responded to our survey and have indicated that they are a market for at least one of the classes of leisure risks highlighted in this specialty feature.

BAT Insurance Corporation

465 S. Beverly Dr., Ste. 101

Beverly Hills, CA 90212

Contact: Tony Trocino

Phone: (310) 282-0753

Fax: (310) 282-7133

An E&S broker operating in CA offering limits of up to $10 million. Property and GL both are available. The A rated carrier is Westchester Fire.

Russell Bond & Company, Inc.

295 Main St., Ste. 866

Buffalo, NY 14203

Contact: Jeff Latke, Ext. 147; Chris Moyer, Ext., 149; or Tony Ambrose, Ext. 143

Phone: (800) 333-7226

Fax: (716) 856-0403

E-mail: info@russellbond.com

An MGA operating in NY offering limits of $2 million/$3 million and higher. Target markets are amusement rides (kiddy), campground owners, canoe trips, horse & carriage rides, miniature golf, driving ranges, and tennis & racquetball centers. GL, liquor liability, and excess liability are available. Various A rated carriers are utilized to place coverage.

J.E. Brown & Associates

303 Lennon Lane

Walnut Creek, CA 94598

Contact: Betty Peterson or Wendy Heathorn

Phone: (800) 955-8213

Fax: (925) 947-3978

E-mail: marketing@jebrown.net

Web site: www.jebrown.net

An MGA/E&S broker operating in CA offering limits of up to $1 million. Target markets include amusement centers, campgrounds, canoeing, family fun centers, driving ranges, miniature golf, and water parks. Many other recreational classes are also written along with special events. The A rated carrier is Genesis Indemnity.

Burns & Wilcox, Ltd.

30833 Northwestern Hwy., Ste. 220

Farmington Hills, MI 48334

Contact: Home office for local branch

Phone: (800) 521-1918

An MGA/E&S broker operating in all states except HI, MA, ME, NJ and NY offering limits of up to $1 million on primary and $10 million on excess liability. Most classes are considered. Inland marine, property and event coverage are also available. Various carriers are accessed.

Capitol Indemnity Corporation

P.O. Box 5900

Madison, WI 53705

Contact: James C. Schlacks, CPCU, Director of Marketing

Phone: (608) 231-4450

Web site: www.capitolindemnity.com

An insurer operating in 37 states offering limits of up to $1 million/$3 million. Most leisure classes are considered. Animal rides, paint ball, and go-karts are not written. Capitol Indemnity is A+ rated.

Century Surety Group

P.O. Box 163340

Columbus, OH 43216

Contact: Tom Rossi

Phone: (800) 878-7389

Fax: (614) 895-7036

E-mail: trossi@centurysurety.com

Web site: www.centurysurety.com

An insurer working through contracted MGAs offering limits of up to $1 million/$2 million. Century Surety operates in most states. Target markets include driving ranges, bowling centers, paint ball centers, amusement centers, tennis & racquetball, and canoe trips. Excess is also available.

Entertainment Brokers International

10940 Wilshire Blvd., 17th Floor

Los Angeles, CA 90024

Contact: Bill Cody

Phone: (310) 824-0111

Fax: (310) 824-5733

A managing agent operating in all states offering limits of up to $10 million. Target markets include mechanical rides, water slides, hot air balloons, and paint ball centers. Property, workers compensation, umbrella and contingency are available. XL Insurance Specialty/Intercargo Insurance is an A+ rated carrier.

Excel Insurance Services, Inc.

301 Oxford Valley Rd., Ste. 402A

Yardley, PA 19067

Contact: Dennis Pellegrino

Phone: (877) 369-2999

E-mail: dennisp@excelins.com

An MGA/E&S broker operating in NJ and PA offering limits of $1 million and upwards. Scottsdale and various A rated or better carriers are utilized to place coverage.

Fairway Underwriters, Inc.

191 Pawtucket Blvd.

Lowell, MA 01854

Contact: Fran Coulter

Phone: (800) 662-2141

Fax: (978) 454-8740

Web site: www.fairwayunderwriters.com

An MGA operating in all states except AK, KY, HI, NV and TX. Target markets include golf courses and driving ranges. Country clubs and hole in one is also available. A rated carriers include Allmerica Group, Hanover Insurance Company and Massachusetts Bay Insurance.

Frazier Insurance Agency Inc.

P.O. Box 1250

Midlothian, VA 23113

Contact: Bill Frazier or Isabel Frazier

Phone: (804) 754-7610

Fax: (804) 754-7613

E-mail: frazierins@aol.com

Web site: www.frazierins.com

A P&C/E&S broker operating all states offering limits of $300,000 to $10 million. Target markets include batting cages, family fun centers, trail rides, ice/roller skating, water parks, go-karts concessions, and special events. Many other leisure, recreational, sports, and motorsports are available. Various carriers, rated from B++ to A++ are utilized to place coverage.

Gillingham & Associates, Inc.

8461 Turnpike Dr., Ste. 110

Westminster, CO 80030

Contact: Thomas S. Gillingham, Glenn Sudol or Thomas A. Gillingham

Phone: (888) 636-6504

Fax: (303) 428-5900

E-mail: tom@outdoorinsurance.com

Web site: www.outdoorinsurance.com

A program manager operating in most states and Canada offering limits of up to $1 million on primary and $5 million on excess/umbrella. Property up to $5 million is available. Crime and liquor is written in most states. GL is not available on whitewater rafting and ski resorts. Member companies of Gulf Insurance Group, A+ rated, are utilized to place coverage.

The Harry W. Gorst Company

805 Fairmont Ave.

Glendale, CA 91203

Contact: Jennifer Clark

Phone: (818) 507-0900, Ext. 124

An E&S broker operating in CA offering limits of up to $3 million/ $3 million. Target markets include amusement parks, driving ranges, miniature golf, and swim and racquetball clubs. Property, prize indemnification, golf carts, and liquor liability are also written. Scottsdale and Western Heritage are utilized to place coverage.

Harbour Entertainment & Sports Insurance

100 Corporate Pointe

Los Angeles, CA 90230

Contact: Joe Hall

Phone: (800) 477-4930

Web site: www.eventinsurance.net

A program manager operating in all states offering limits of up to $25 million. Most leisure classes are considered. GL, property, liquor liability, workers compensation, prize indemnity, and AD&D are also written. Carriers include AIG, North American Specialty, and National Casualty.

L.E. Harris Agency, Inc.

P.O. Box 8330

Langley Park, MD 20787

Contact: Cindy Milburn or David Riffert

Phone: (800) 382-4709

Fax: (301) 439-4700

An MGA/E&S broker operating in DC, MD and VA offering limits of $1 million CSL. Target markets include equine/saddle animals, hot air balloon rides, and amusement parks. Property, D&O, and EPLI are also written. A rated or better carriers include National Indemnity, Monticello, and Penn-American.

High Performance Programs Group (HPPG)

10 S. LaSalle St., Ste. 3000

Chicago, IL 60603

Contact: Ralph Blust or Gail Majewski

Phone: (888) 852-4969

Fax: (312) 621-6865

E-mail: blust_ra@willis.com

Web site: www.hppgroup.com

An MGA operating in all states except monopolistic states. The target market includes most leisure classes. Amusement parks, circus, carnivals, and water parks are not written. The A rated carrier is Royal and Sun Alliance.

Izzo Insurance Services, Inc.

7234 W. North Ave.

Elmwood Park, IL 60707

Contact: Michael C. Jones

Phone: (708) 452-1700, (IL)

(800) 800-1704 (outside IL)

Fax: (708) 452-1777

An MGA/agency operating in all states offering EPLI limits of $1 million/$2 million. Target market is EPLI and workers compensation only for leisure classes of business. Carriers include Great American, Legion Insurance, Virginia Surety, and Casualty Reciprocal.

Jimcor Agencies

15 Ver Valen St.

Closter, NJ 07624

Contact: Coryn Mastowski

Phone: (800) 334-0474

Fax: (201) 784-7901

E-mail: cmastowski@jimcor.com

An MGA/E&S broker operating in DE, MD, NJ, NY and PA offering limits of up to $5 million on primary and $25 million on umbrella. Target markets include swim/tennis clubs, driving ranges, miniature golf, and campgrounds. Hot air balloon rides and paint ball are not written. Various A rated or better carriers are utilized to place coverage.

M.J. Kelly Company, Inc.

4415 E. Sunshine

Springfield, MO 65809

Contact: Lori Drake, Sandy Shue or Heather Duffield

Phone: (800) 725-7211

Fax: (417) 883-7103

An MGA operating in AR, IL, KS, MO and OK offering limits of $1 million/$2 million on primary and up to $10 million excess. Target markets include paint ball, miniature golf, carriage rides, and horse rides. Amusement parks and hot air balloon rides are not written. Special events, property, and packages policies are available. Various carriers are utilized to place coverage.

Markel Insurance Company

4600 Cox Rd.

Glen Allen, VA 23060

Contact: Martha Watson

Phone: (800) 431-1270

Fax: (804) 273-6144

E-mail: mwatson@markelcorp.com

Web site: markelcorp.com

An insurer operating in all states except HI offering limits of $1 million/ $3 million. Target market is tennis and racquetball centers. GL, umbrella, accident medical and package coverages are written. Markel Insurance Company is an A rated carrier.

Market Finders Insurance Corporation

P.O. Box 6549

Louisville, KY 40206

Contact: Karen Cornett, Charles Curry or Barb Lush

Phone: (800) 626-5660

Fax: (502) 426-7970

E-mail: k.cornett@mfic.com

Web site: www.mfic.com

An MGA operating in IN, KY, TN and WV offering limits of up to $1 million/$3 million. Most classes are considered. Property and inland marine are written. A rated or better include Scottsdale, Colorado Western, Essex Insurance, Admiral Insurance, and Western World.

G.A. Mavon & Company

10 W. Chicago Ave.

Hinsdale, IL 60521

Contact: Karen Bowler

Phone: (877) GA-MAVON

E-mail: karen@mavon.com

An MGA/E&S broker operating in all states except CT, DE, MA, ME, MN, MS, NY and TX. Limits offered are $300,000 to $1 million. Colorado Western Insurance and Genesis Insurance Companies are the carriers.

Nationwide Insurance

P.O. Box 2399

Columbus, OH 43216

Contact: Ron Barrow

Phone: (800) 525-8669, Ext. 3735

Fax: (614) 854-3753

E-mail: BarrowR@Nationwide.com

Web site: www.GrouProtector.com

An insurer operating in all states, DC, Puerto Rico and U.S. Virgin Islands. Target market is accidental death and specific loss (dismember-ment) and accident medical expense for the leisure business; dollar amounts will vary. Nationwide is an A+ carrier.

Roush Insurance Services, Inc.

P.O. Box 1060

Noblesville, IN 46061

Contact: Gail Pierce, Ext. 18; Scott Sackers, Ext. 23; or Tony Armor, Ext., 17

Phone: (800) 752-8402

Fax: (317) 776-6891

Web site: www.roushins.com

An MGA operating in IL and IN offering limits of up to $20 million. Target markets are hot air balloon rides and equine trail rides. Property, workers compensation, and commercial auto are also written. A rated or better carriers include Scottsdale, Tudor, American Equity, Gainsco, Reliant American and Gulf Insurance Group.

Robert A. Schneider Agency

5620 Smetana Dr., Ste. 350

Minnetonka, MN 55343

Contact: Sue Karkhoff

Phone: (800) 862-6038

E-mail: rs@rasinc.com

An MGA/E&S broker operating in IA, MN, ND, SD and WI offering limits of $1 million/ $3 million. Target markets are bowling centers and climbing walls. Property, inland marine, auto, and umbrella are available. Carriers include Nautilus, Essex, and Colorado Western.

U.S. Risk Group, Inc.

Specialty Programs Division

10210 N. Central Expressway, Ste. 500

Dallas, TX 75231

Contact: Larry Williams, Ext. 964; Dory Johnson, Ext. 966; or Julie Esparza, Ext. 965

Phone: (800) 232-5830

E-mail: Larryw@usrisk.com, Dory@usrisk.com, or JulieE@usrisk.com

A risk purchasing group/MGA operating in all states except FL, HI, NJ and WV offering limits of up to $5 million occurrence with $2 million aggregate. Target markets include short-term recreational, leisure, or entertainment risk. Amusement rides, risks with fireworks/firearms animal rides, hunting clubs or ranges are not written. A+ carriers are Northland Insurance and Northland Casualty Insurance Companies.

Unifax Insurance Systems, Inc.

23251 Mulholland Dr.

Woodland Hills, CA 91364

Contact: Mick Kroll

Phone: (800) 669-9800

Fax: (818) 591-9858

An E&S broker operating in CA offering limits up to $5 million. Target markets include outfitters and guides in hunting and fishing. Various carriers are utilized to place coverage.

Venture Programs

P.O. Box 1329

West Chester, PA 19380

Contact: Bill Dalton, Director of Marketing, Ext. 254

Phone: (800) 282-6247

Fax: (610) 692-5977

E-mail: BDalton@VenturePrograms.com

Web site: www.VenturePrograms.com

A program manager operating in all states offering limits as requested. Target markets include golf and country clubs, private social and sport-related clubs including golf, tennis, and racquetball. Hunting and yachting clubs are not written. Package, workers compensation, D&O, and EPLI policies are available. A rated or better carriers include Chubb, Legion, Villanova, and USLI.

J.M. Wilson

8036 Moorsbridge Rd.

Portage, MI 49024

Contact:

Karen Stites, (MI) Phone: (800) 677-8122 Fax: (616) 327-4131

Terry McFaul, (IL and WI) Phone: (800) 695-0059 Fax: (608) 833-3736

Dan Norton, (IN) Phone: (800) 538-4796 Fax: (317) 846-5762

Sue Gwillim, (OH) Phone: (800) 388-8178 Fax: (614) 890-6333

Web site: www.jmwilson.com

An MGA operating in IL, IN, MI, OH and WI offering limits of up to $5 million. Most classes are considered except hot air balloon rides, water parks, and theme parks. A rated or better carriers include Capitol Indemnity, Nautilus, General Star, and National Indemnity. *