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SPECIALTY LINES MARKETS Copy
Pay for play
Amusement parks and participation sports businesses show strong growth
By Larry G. France
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“The pay for play industry continues to grow as Americans spend more and more leisure time outdoors, be it for health reasons or pure family entertainment.”
—Lou Valentic
Chief Marketing Officer
K&K Insurance Group, Inc. |
Leisure risks can be very risky if you don’t have the expertise or the assistance of someone who does. Consider the fact that California’s Disneyland, which just turned 50, opened with 15 rides. Today, it has 80 rides. Florida’s Disneyworld encompasses more land area than the state of Rhode Island.
“The pay for play industry continues to grow as Americans spend more and more leisure time outdoors, be it for health reasons or pure family entertainment,” according to Lou Valentic, Chief Marketing Officer, K&K Insurance Group, Inc. “From leisure camps to sports complexes, and health clubs to outfitter and guides operations, the industry has responded with competitive insurance products that help owners/operators protect their businesses and grow revenues. And with market stability and welcome rate relief in many coverage lines, many businesses in this segment are doing just that.”
Valentic says that they are seeing increased competition in the marketplace with more carriers willing to underwrite this type of business at competitive rates. “As a result, bottom-line profits for many pay for play businesses are on the rise,” Valentic adds.
Valentic says that the pay for play industry is a good source of revenue growth for agents as well. Risks in this class can be found in virtually every community with new operations constantly popping up, making excellent prospects for agencies looking to add some specialty niche business to their book.
“We work with many agencies that pursue these types of accounts as a way of augmenting their primary agency focus,” says Valentic.
What is pay for play? Participants engage in activities such as amusement rides, animal rides, golf ranges and courses, bowling, canoe rides, tennis and racquetball, and paintball, to name a few. In short, they are participating as opposed to being spectators at ball games, races and entertainment venues.
Saferparks (www.saferparks.org) is a California nonprofit corporation dedicated to preventing amusement ride-related accidents through research, public education, and political advocacy. This site was launched in 2003 to help consumers learn about amusement ride safety. The tips and statistics come from several sources including The U.S. Consumer Product Safety Commission (CPSC). The CPSC is the only public source for nationwide data describing amusement ride injuries. Most amusement parks are exempt from federal safety oversight due to what is known as the “Roller Coaster Loophole,” which exempts fixed-site amusement rides.
Congressman Ed Markey (D-Mass.) has introduced legislation in the House of Representatives to close that loophole. His National Amusement Park Ride Safety Act would give the CPSC the same rights and responsibilities over permanent parks including the authority to:
• Investigate accidents
• Develop and enforce action plans to correct defects
• Require reports to the CPSC whenever a substantial hazard is identified
• Act as a national clearinghouse for accident and defect data
Saferparks also lists “Five Tips to Safer Rides:”
1. Dress for safety, including tying back long hair that could become lodged in ride machinery.
2. Find the ride that fits. In other words, match the size, shape, strength, health and abilities of the rider.
3. Learn about the ride before boarding, including reading posted safety rules.
4. Enjoy the thrills; avoid the spills by using all the safety equipment provided including grab bars. Double-check the restraints—yours and your child’s—before the ride starts moving.
5. Get off safely. Keep your whole body inside the ride until the restraint system releases you or the operator tells you it is time to get off
More details can be found on Saferparks Web site. The tips not only are good to know when looking at a risk but very important for anyone occupying rides.
Finding markets for many pay for play risks has not always been easy. When a certain type of risk starts having loss problems, the choice is for insurers to back off from writing future submissions unless regulations are put into place that reduce the risk potential or the insured cooperates with efforts to reduce losses, and manage and mitigate risks.
“In many ways the market for recreation has gone against the prevailing trends of the industry as a whole,” said Morris W. Nelson, AIC, CIC, director at Illinois R.B. Jones of Denver. “By this I mean that the recreational market, especially certain segments—horse-related as an example—have seen a tightening of the market availability in the recent years. This has created opportunities for specialized markets to fill the niche. This niche needs some expertise in the field and that is not readily accessible in many circumstances. That is why we created our office.”
Nelson says that various states rely heavily on tourism-driven recreation activity and have enacted statutes that protect operators of these businesses from lawsuits. “These laws are based on the assumption of risk principle that certain things that you do are fun but not risk free and if you are going to do these you take on the assumption of the risk,” Nelson points out.
“The most successful of these,” he continues, “have been various skier protection laws and equine protection statutes. They have granted specific protection under a codified set of circumstances. There are also many court cases that have given the recreation business protection if they get a release form filled out properly and advise the clients of the risks that they are assuming in many different types of these businesses.”
Nelson states that the field is still a difficult one to insure and that laws are necessary that allow businesses to operate without the threat of lawsuits arising from many accidents that can’t really be prevented because of the nature of the activity.
“We feel that with the right personnel and controls that this class of business can be written for a growing market segment,” Nelson concludes.
It is very evident that the public enjoys participating in the various types of pay for play risks. The number of prospects continues to grow. The key is to find a marketing and underwriting partner that can assist you in your growth along with the industry.
The following have responded to our survey and indicated that they provide coverage for various segments of the pay for play market. As always, pay attention to geographic and target classes under each listing.
Agency Marketing Services, Inc.
P.O. Box 67218
St. Pete Beach, FL 33736
Contact: John Coe, Jayne McKeehan
Phone: (800) 542-2805
E-mail: jcoe@agencymarketing.com
An E&S broker operating in FL and GA with primary GL limits of $1 million/$2 million/$1 million and excess of $5 million. Target markets are bowling centers, miniature golf, golf courses, amusement rides, animal rides (sweeps or hand-led), tennis/racquet clubs, and campgrounds. Will not write trail rides, outfitters, or rafters. Can offer commercial umbrella of $5 million. All carriers are A rated.
Aon Specialty Product Network
200 E. Randolph St., 18th Fl.
Chicago, IL 60601
Contact: Aon Specialty Product Network will direct you to the appropriate provider company
Phone: (877) 275-2776
Fax: (312) 381-6211
E-mail: moreinfo@askaspn.com
Web site: www.askaspn.com
An MGA/E&S broker/program administrator that operates in all states. Will consider most classes. All carriers are rated A or better.
Arlington/Roe & Company, Inc.
P.O. Box 80803
Indianapolis, IN 46280
Contact: Jacque Pevey, Deb Allen
Phone: (Pevey) (317) 554-8609, (Allen) (317) 554-8681
Fax: (317) 554-8551
Web site: www.arlingtonroe.com
An MGA/wholesaler operating in IL, IN, KY, MI, OH and TN with limits of $1 million. Target classes are animal rides, tennis/racquetball centers, trail rides and campground owners. Amusement parks/rides, canoe/river rafting and water parks are not written. Nautilus, Capitol Indemnity, Northland and Western World are the carriers used to place coverage.
Bohrer, Croxdale & McAdoo, Inc.
P.O. Box 2760
Springfield, MO 65801
Contact: Grace Cumley, Marilyn Foster, Twila Hall
Phone: (800) 779-2550
Fax: (888) 869-2550
Web site: www.bcmins.com
An MGA that operates in AR, IL, KS, MO and OK with limits of $1 million/$2 million. Target classes are campgrounds and ATV courses; Will not write paintball centers. Can offer umbrella. Carriers are Atlantic Casualty (A-), Capitol Indemnity (A), Capitol Specialty (A), Maxum Specialty (A-), National Fire & Marine (A++), Northland (A), and Scottsdale (A+).
Capitol Insurance Companies
1600 Aspen Commons
Middleton, WI 53562
Box P.O. 5900
Madison, WI 53705
Contact: Dave Schirmer
Phone: (800) 475-4450
Fax: (608) 829-7403
Web site: www.capitolindemnity.com
Companies in the group operate in 40 states on an admitted basis and 49 states on a nonadmitted basis, with limits of up to $1 million/$2 million (umbrellas up to $2 million depending on the class). Target markets are amateur sports multiplex, amusement center classes (go-carts, batting cages, miniature golf, pony rides, etc.), archery/shooting ranges, bowling centers, campgrounds/resorts, golf courses, sports camps/leagues, paintball centers, recreational rental stores, trail rides, and water hazards (swimming pools/beaches, canoe/sailboat/kayak rental). Will not write bumper cars, dunk tanks, moon walks, water trampolines. Coverages offered beyond GL are participants coverage, med pay, inland marine and property as well as professional coverage for low- to medium-hazard sports instructors. The Capitol Insurance Companies are rated A.
Continental Bloodstock Agency, Ltd.
1818 Versailles Rd.
Lexington, KY 40504
Contact: Richard Grossman
Phone: (859) 233-1818
Fax: (859) 255-7506
E-mail: dick@equineinsurance.com
Web site: www.equineinsurance.com
An agency that operates throughout the continental United States with limits of up to $1 million. Target classes are trail rides (equine), and horse and carriage rides. Can offer property. Lloyd’s and Gemini are the carriers.
Entertainment Brokers International
10940 Wilshire Blvd., 17th Fl.
Los Angeles, CA 90024
Contact: Aaron Ma
Phone: (310) 824-0111
Fax: (310) 824-5733
E-mail: ama@ebi-ins.com
An MGA that operates in all states with limits of $50 million. Target classes are bowling centers, miniature golf, golf courses, tennis/racquetball centers, campground owners, family fun centers, and contingency coverages. Will not consider amusement parks/rides, animal rides, canoe trips/river rafting, horse and carriage rides, water parks, outdoor recreational facilities, paintball centers, or trail rides (equine). Can offer auto liability, GL, umbrella, workers comp, property, and inland marine. Clarendon and NAS are the carriers.
Fairway Underwriters, Inc.
191 Pawtucket Blvd.
Lowell, MA 01854
Contact: Dawn Nogueira
Phone: (800) 662-2141
E-mail: info@fairwayunderwriters.com
A program manager that operates in all states except AK, HI, KY and NV. Target class is golf and country clubs; will not consider municipal. Can offer weather insurance. Carriers are Hannover, RLI/Mt. Hawley, and St. Paul Travelers.
Francis L. Dean & Assoc., Inc.
P.O. Box 4200
Wheaton, IL 60189
Contact: John Dean
Phone: (800) 745-2409
Fax: (630) 665-7294
E-mail: jdean@fdean.com
Web site: www.fdean.com
A managing general underwriter that operates in all states with limits of $1 million/$2 million plus up to $2 million on most classes. Target class is amateur sports facilities. Will not consider water parks or paintball. Can offer sports participant accident/medical coverage. All carriers are A rated.
Gateway Underwriters Agency
1714 Deer Tracks Trail, Ste. 210
St. Louis, MO 63131
Contact: Mary Beth Fox
Phone: (800) 325-7652
Fax: (314) 238-0065
E-mail: marybeth.fox@gua-stl.com
Web site: www.gua-stl.com
An MGA operating in IA, IL, KS, MO and NE with limits of $1 million/$2 million. Can offer auto, umbrella, liquor liability, and property/GL. USLI, Nautilus, Western World, Scottsdale, and National Indemnity are the carriers.
Illinois R.B. Jones of Denver
7936 East Arapahoe Ct., St. 310
Centennial, CO 80112
Contact: Morris Nelson, Barry Starbuck
Phone: (Nelson) (720) 529-3044, (Starbuck) (720) 529-3043
Fax: (720) 529-3041
E-mail: morris.nelson@illinoisrbjones.combarry.starbuck@illinoisrbjones.com
Web site: http://denver.illinoisrbjones.com
An insurer that operates in all states except CT, LA, MA, NH, NJ and RI with limits of $1 million/$2 million. Target classes are pony rides, trail rides, outfitters/guides, archery ranges, batting cages, bicycle tours (guided) and rental, bike rental, canoe/kayak/rowboat rentals, cart rides, fishing outfitters, go-cart tracks, golf driving ranges, miniature golf, river rafting, water parks, and water slides. Carrier is rated A-.
Izzo Insurance Services, Inc.
7234 W. North Ave.
Elmwood Park, IL 60707
Contact: Mike Jones
Phone: (800) 800-1704
Fax: (708) 452-1777
E-mail: mjones@izzoinsurance.com
Web site: www.izzoinsurance.com
An MGA/wholesale broker that operates in all states except HI with limits of up to $2 million. Target classes are bowling centers, miniature golf, arcades, and tennis/racquetball centers. Will not consider amusement parks, canoe/rafting, horse and carriage, or water parks. Can offer workers comp only. The A rated carriers are ACE, AIG, The Hartford, Technology, and Zenith.
K&K Insurance Group, Inc.
1712 Magnavox Way
Fort Wayne, IN 46804
Contact: Call 866 number for new business inquiries
Phone: (866) 554-4636
Fax: (260) 459-5967
E-mail: kk_general@kandkinsurance.com
Web site: www.kandkinsurance.com
For Canadian risks, Phone: (800) 753-2632; Fax: (905) 602-9141
A managing general underwriter operating nationwide with in-house authority/capacity that may vary by program or business. Target classes are camps, tennis/racquetball centers, health clubs/fitness centers, bowling/billiard centers, canoe trips/whitewater rafting, outfitter and guides, carriage rides, zoos/aquariums, dance schools, gymnastics clubs, martial arts studios, special events, and sports complexes. Will not consider parasailing, watercraft rental, ski resorts, amusement parks, family fun centers, campgrounds, or inflatable/bounce devices. Full commercial package is available for most programs, including: GL, liquor liability, vendor coverage, contingent ride liability, fireworks liability, property, business income, commercial auto, inland marine, crime, excess liability, and participant accident. All carriers are rated A or better.
M.J. Hall & Company, Inc.
709 N. Center St.
Stockton, CA 95202
Contact: Norm Amick
Phone: (209) 948-8108
Fax: (209) 465-3843
Web site: www.mjhallandcompany.com
An MGA/E&S broker that operates in AK, AZ, CA and NV with limits of $5 million plus. Target classes are bowling centers, miniature golf, outdoor recreational facilities, moon bounces, paintball centers, tennis/racquetball centers, and campground owners. Will not write horse rental or amusement parks. Can offer property, inland marine, and excess liability. Various A rated nonadmitted carriers are used to place coverage.
M.J. Kelly Co., Inc.
4415 E. Sunshine
Springfield, MO 65809
Contact: Heather Duffield, Shawna Cooke, John Jennings
Phone: (800) 725-7211
Fax: (417) 883-7103
E-mail: hduffield@mjkelly.com
Web site: www.mjkelly.com
An E&S broker that operates in AR, FL, IA, IL, KS, MO, MS, OK, TN, TX and UT with limits of $1 million/$2 million. Target classes are amusement parks/rides, canoe trips, horse rides, hot air balloon rides, trail rides, and water parks. Can offer special events, liquor liability, and property. All carriers are rated A+.
The Monroe Group, Inc.
1159 Pittsford-Victor Rd., Bldg. 5, Ste. 100
Pittsford, NY 14534
Contact: David Barnes
Phone: (800) 336-6686
Fax: (585) 385-4607
E-mail: info@monroeinsurance.com
Web site: www.monroeinsurance.com
An agency that operates in most states in the continental United States with limits of $1 million/$2 million (umbrella polices available). Target classes are driving ranges and private/semi-private country clubs. Can offer liability, property, auto, business income, employee dishonesty, computer coverage, and inland marine. All carriers are rated A+.
NIF Group/NIF Pro
30 Park Ave.
Manhasset, NY 11030
Contact: See Web site for list of offices
Phone: (800) 892-8892
E-mail: marketing@nifgroup.com
Web site: www.nifgroup.com
An MGA/E&S broker that operates in all states on an admitted basis and in the eastern United States on a nonadmitted basis with limits of $1 million. Can offer excess and umbrella. All carriers are rated A.
NorthCoast Excess & Surplus Agency, Inc.
2244 E. Enterprise Pky.
Twinsburg, OH 44087
Contact: Jeff Burke, Michele Burke
Fax: (330) 405-9893
E-mail: jburke@ncoastxs.com mburke@ncoastxs.com
An E&S broker that operates in OH only with limits of $1 million/$2 million. Will not consider inflatable amusement devices. All admitted and nonadmitted carriers are A rated.
Philadelphia Insurance Companies
One Bala Plaza, Ste. 100
Bala Cynwyd, PA 19004
Contact: Haley Brodsko
Phone: (800) 873-4552
Fax: (610) 617-7940
E-mail: hbrodsko@phlyins.com phlysales@phlyins.com
Web site: www.phly.com
An insurer that operates in all states except LA with limits of up to $10 million with umbrella. Will not consider batting cages or tennis bubbles. Can offer tee-to-green coverage. Both Philadelphia Indemnity and Philadelphia Insurance are rated A+.
Quaker Special Risk
P.O. Box 415
Sea Girt, NJ 08750
Contact: Frank Walsh
Phone: (800) 447-4180
Fax: (732) 223-9072
Web site: www.quakerspecialrisk.com
An MGA/E&S broker operating in CT, DE, FL, GA, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, SC, VA and VT with limits of $1 million/$2 million. Target classes are amusement parks, amusement device rentals, kiddie rides, bowling centers, tennis centers, paintball centers, rock climbing indoor centers, and traveling petting zoos. National Indemnity, National Fire and Marine, Nautilus, American Empire, Admiral, and Lexington are the carriers.
R.E. Chaix & Associates
41 Corporate Park, Ste. 310
Irvine, CA 92606
Contact: Timothy Chaix, Charlie Alegria, Robbie McKinney
Web site: www.rechaixinsurance.com
An MGA/E&S broker that operates in CA only with limits of up to $1 million. Target classes are amusement rides, bowling centers, outdoor recreational facilities, animal rides, and miniature golf/golf courses. Can offer inland marine and liquor liability. All carriers are nonadmitted with an A rating or better.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 225
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (800) 832-6038
Fax: (952) 938-0701
E-mail: rs@rasinc.com
Web site: www.rasinc.com
An MGA/E&S broker operating in IA, MN, ND, SD and WI with limits of $2 million. Will consider all classes except auto racing. Can offer property and inland marine. Nautilus, Penn America, and Essex are the A rated carriers.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Scott Sackers, Tony Armor
Phone: (317) 776-6880 (800) 752-8402 (IL, IN)
Fax: (317) 776-6891
E-mail: scott.sackers@roushins.com tony.armor@roushins.com
Web site: www.roushins.com
An MGA that operates in IL, IN and OH only with GL limits of $1 million/$2 million aggregate with excess up to $20 million; property limits of $1 million with higher limits available. Target classes are bowling centers, campground owners, carnivals, children’s rides, festivals, golf courses, hole-in-one, horse and carriage rides (private trails only), miniature golf, outdoor recreational facilities, and tennis/racquetball centers. Will not write hot air balloon rides, rain insurance, or water parks. Can offer auto, D&O, and excess/umbrella. Atlantic Casualty (A-), Century Surety (A-), Evanston (A), Essex (A) and Scottsdale (A+) are the carriers.
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, Ext. 147; Chris Moyer, Ext. 149; Mike Kraus, Ext. 330
Phone: (800) 333-7226
Fax: (800) 677-6779
E-mail: info@russellbond.com
Web site: www.russellbond.com
An MGA that operates in New York state only with limits of $2 million/$3 million and higher. Target classes are kiddie rides, canoe trips, golf driving ranges, campground owners, horse and carriage rides, miniature golf, swim/tennis/racquet centers, batting cages, canoe/paddle boat rentals, dunk tanks, and simulator rides. Will not write inflatable amusement devices, adult amusement rides, bungee jumps, ATV rentals, paintball games, and go-carts. Can offer GL, liquor liability, and excess liability. All carriers are rated A- or better.
United Brokers Inc.
P.O. Box 1243
New Albany, IN 47151
Contact: Janice Taylor, Ron Gap, Pam Wind
Phone: (800) 444-4824
Fax: (812) 949-4015
Web site: www.ubinc.com
An MGA that operates in many states with limits of up to $1 million/$2 million. Target classes are bowling centers, amusement rides, golf course, miniature golf, campground owners, and outdoor recreational facilities. Will not consider paintball centers. Can offer property, inland marine, and umbrella. Markel and USLI are the carriers.
Venture Insurance Programs
1301 Wrights Lane E.
West Chester, PA 19380
Contact: Annamarie Keen, Ext. 278
Phone: (800) 282-6247
E-mail: marketing@ventureprograms.com
Web site: www.ventureprograms.com
An MGA/program administrator that operates in all states with GL limits of $1 million/$2 million primary, unlimited property, and umbrella limits of up to $2 million. Target classes are private golf/country clubs, semi-private clubs, upscale courses (daily fee), and golf management companies. Will not consider driving ranges, miniature golf or hole-in-one. Can offer property, GL, auto, umbrella, pollution, AD&D, D&O, EPL, and workers comp. Carriers are Chubb (A++), ACE Group (A), USLI (A++), Hanover (A-), and ALEA (A-).
Western World Insurance Co.
400 Parson’s Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel
Phone: (201) 847-8600
Fax: (201) 847-1010
Web site: www.westernworld.com
An insurer that operates in all states with GL limits of $1 million/$2 million. Target is smaller, lighter risks. Will not write trail rides. Can offer GL, property, and floaters. Western World is rated A+ as is its sister company, Tudor Insurance Co. * |
