By Larry France

Pay for play risks are ones that require individuals to pay an admission or fee to participate in activities. Activities can include amusement or animal rides, canoeing or rafting, bowling, playing tennis, or visiting an amusement park or driving range.

This class of business has had its ups and downs over the last 15 years. One of the problems has been carriers offering coverage without knowledge of the amusement business. Many of these markets have disappeared, mostly due to lack of expertise in the ability to provide coverage, loss control and efficient claims handling. Without these elements, this class of business can reach deep into your loss ratios. The current firming of our industry is a contributor to carriers deciding that maybe they didn't know enough about pay for play risk after all. The remaining markets, however, provide a wide choice to place business.

The main classes of leisure risk addressed in this article are amusement parks and rides, animal rides, bowling centers, campgrounds, canoe and river rafting, driving ranges, carriage rides, hot air ballooning, miniature golf, paint ball centers, tennis/racquetball centers, water parks, and trail rides.

In most cases, acceptability--not limits--will be the challenge. In order to continue to provide a program, carriers must adhere to underwriting guidelines. A prior inspection of the facility along with a full submission which includes diagrams, photos, maintenance records, and full loss history will increase your chances of placing the client with the most favorable coverage and rate.

Fixed rides are more acceptable than mobile ones. Permanent facilities are more desirable than short-term or transit risk. Experienced guides are necessary for trail rides and canoe/rafting exposures. Proper lighting on the carriages is needed especially when carriage rides are being given at night. Spacing between patrons on a driving range adds up to fewer claims from a three wood.

Not every agent will have the opportunity to write a Disney or Six Flags client, but many communities have at least one of the risks in this niche. Even some of the major resorts and parks have independent concessionaires that provide the carriage rides, trail rides, driving ranges and canoe trips for that facility.

Each year, an estimated 300 million people in the United States attend fairs and carnivals where mobile rides are a part of the attractions. The Consumer Product Safety Commission has jurisdiction over the ride industry. According to the CPSC, during the period from January 1987 to June 1999, there were seven mobile ride fatalities. The CPSC also estimates that in 1999 there were 7,260 injuries involving rides at fixed-site U.S. parks. Although parks are safe when figures are compared to injuries from trampolines (98,899), golf-related incidents (47,386), and bicycles (614,594) occurring in 1999, there is one problem. Some states, including California and Florida--where the amusement industry is prevalent--do not require that accidents be reported to the state; therefore, some of the injury estimates might be on the low side.

Check your state's accidents reporting requirements. Are inspections of rides and parks required and conducted by state or local officials? Not all states have these rigid requirements.

Several amusement industry organizations provide guidance in safety training and loss prevention. Among these are the International Association of Amusement Parks and Attractions (IAAPA), Outdoor Amusement Business Association (OABA), Amusement Industry Manufacturers Suppliers (AIMS), and the National Association of Amusement Ride Safety Officials (NAARSO).

These organizations provide seminars on safety, ride design, loss prevention and development of exact standards for maintenance. For example, in most cases coasters are inspected on a daily, monthly, and annual basis to check lift chains and brakes. Monthly inspections involve more detailed inspections--even dismantling the cars to detect wear. At annual checks, facilities use x-ray equipment and scanners to locate stress points. Some carriers or markets will issue rate credits for members of these organizations because of standards and training involved.

The scope of pay for play risk runs from a small driving range to the mega theme parks. Every area has at least one pay for play business. As markets tighten, more will be looking for a new home. Do your homework now.

The following responded to our survey and indicated that they are a market for all or portions of the pay for play classes of risk. Not all programs are written in all states. Each market has specified what its area of operation is.

Arlington/Roe & Company, Inc.

8465 Keystone Crossing

Indianapolis, IN 46240

Contact: Teri Reynolds, Jacquie Pavey, Angela Dimitt

Phone: (800) 878-9891

Fax: (317) 259-4106

An MGA operating in IL, IN, KY and OH offering limits of up to $1 million. Target markets are animal rides, bowling centers, canoe trip/river rafting, campgrounds, paintball, trail rides, and water parks. Not written are amusement parks, large amusement rides or hot air balloons. Carriers are Northfield, Century Surety, Colorado Western and Capital Indemnity.

Bohrer, Croxdale & McAdoo, Inc.

P.O. Box 2760

Springfield, MO 65801

Contact:

Missouri: Rachel Day, Cecilia Early, Marilyn Foster

Arkansas: Clay Farris

Phone: Missouri: (800) 779-2550 Arkansas: (800) 594-5101

Fax: Missouri: (888) 869-2550 Arkansas: (800) 726-7707

An MGA/E&S broker operating in AR, KS and MO with limits of $1 million/$2 million. Target market is limited to small amusement rides; does not write hot air balloon rides. Other coverages offered are property and inland marine. Various carriers are utilized.

Burns & Wilcox, Ltd.

30833 Northwestern Hwy., Ste. 220

Farmington Hills, MI 48334

Contact: Call 800 number for local branch

Phone: (800) 521-1918

An MGA/E&S broker that operates in all states except HI, MA, ME, NJ and NY with primary limits of $1 million and $10 million excess. Target markets vary by company. Other coverages offered are inland marine, event cancellation and property. Various carriers are utilized.

Russell Bond & Co., Inc.

295 Main Street St., Ste. 866

Buffalo, NY 14203

Contact: Jeff Latke (Ext. 147)

Chris Moyer (Ext. 149), Tony Ambrose (Ext. 143)

Phone: (800) 333-7226

Fax: (716) 856-0403

E-mail: info@russellbond.com

Web site: russellbond.com

An MGA operating in NY only and offering limits of $2 million/$3 million and higher. Target markets are amusement (kiddie) rides, canoe trips, golf driving ranges, campground owners, horse and carriage rides, miniature golf, and tennis and racquetball centers. Also offered are GL, EL and liquor liability. Numerous A rated or better carriers are used.

Continental/Marmorstein & Malone

P.O. Box 586

Paramus, NJ 07652

Contact: Bill Malone

Phone: (800) 932-0249

Fax: (201) 261-8922

E-mail: bmalone@ca-group.com

Web site: www.ca-group.com

An MGA/E&S broker that operates in NJ and NY with limits of $1 million/$2 million. Higher limits are available depending on the account. Excess also is available. All classes are considered, with property and umbrella also offered. Carriers are Essex, American Equity, American Empire, Mt. Vernon, Nautilus, Western World, Burlington and Tudor.

Crusader Insurance Co.

23251 Mulholland Dr.

Woodland Hills, CA 91265

Contact: Jim Pelletier

Phone: (800) 669-9800

Fax: (818) 591-9856

Web site: www.crusaderinsurance.com

An insurer that operates in the state of WA only, with limits of $1 million/$2 million. Target market is bowling alleys. Crusader is the A rated carrier.

Francis L. Dean & Associates, Inc.

P.O. Box 4200

Wheaton, IL 60189

Contact: John Dean

Phone: (800) 745-2409

Fax: (630) 665-7294

An MGA operating in all states and offering limits of up to $5 million/ $5 million. Also offered is accident/ medical coverage for participants. Various A rated carriers are used.

Entertainment Brokers International

10940 Wilshire Blvd., 17th Floor

Los Angeles, CA 90024

Contact: William M. Cody

Phone: (310) 824-0111

Fax: (310) 824-5733

E-mail: william.cody@EntBrokersIntl.com

Web site: www.EntBrokersIntl.com

A managing agent that operates in all states except ME and NH. Target markets are bowling centers, miniature golf, family fun centers, gaming, golf driving ranges, campground owners, paintball centers, tennis and racquetball centers, movie theaters, venues, touring groups. Other coverages offered are property, casualty, auto liability, physical damage, workers comp and motion picture producer E&O. XL Specialty is the admitted carrier; Legion and Villanova are used for workers compensation.

Gateway Underwriters Agency

755 S. New Ballas Rd., Ste. 130

St. Louis, MO 63141

Contact: Mary Beth Fox, Barbara Smeltz

Phone: (800) 325-7652

Fax: (314) 567-4552

E-mail: marybeth.fox@gua-stl.com Barb.smeltz@gua-stl.com

An MGA operating in AR, IL, KS and MO and offering limits of $1 million/$2 million. Classes not written are water parks, paintball, adult amusement rides, traveling carnivals, orbitrons and moonwalking. Inland marine and umbrella are offered. Carriers are Nautilus, Western World and National Fire & Marine.

Gillingham & Associates, Inc.

8461 Turnpike Drive, Ste. 110

Westminster, CO 80030

Contact: Glenn Sudo, Thomas A. Gillingham, Steve Murray

Phone: (800) 849-9288

Fax: (303) 428-5900

E-mail: info@outdoorinsurance.com

Web site: outdoorinsurance.com

A program manager/underwriting manager operating in all states and offering CGL limits of up to $1 million/$2 million and excess or umbrella of $5 million quoted in-house. Target markets are hunting and fishing lodges, guides and outfitters, guest ranches and destination resorts, wingshooting preserves, sporting clays/trap and skeet ranges, RV parks and campgrounds, private hunting leases, rod and gun clubs, fly fishing schools and instructors, backpacking, canoeing, eco-tours, pack trips, camping, snowmobile tours. Not written are youth-oriented risks, including summer camps. Other coverages offered are property, auto, inland marine, D&O, E&O, EL and umbrella. Gulf is the A rated carrier.

H.W. Gorst Co., Inc.

805 Fairmont Ave.

Glendale, CA 91203

Contact: Jennifer Clark (Ext. 124), Cindy Langbenn (Ext. 123), Rob Novak (Ext. 151)

Phone: (818) 507-0900

An MGA operating in CA only with limits of $300,000--$1 million. Target markets are hired/non-owned auto, airplane rides, circuses and go-karts. Other coverages offered are property, crime, glass, inland marine, GL, excess and umbrella. Scottsdale is the carrier.

Hole In One International/Odds on Promotions

6195 Ridgeview Ct., Ste. A

Reno, NV 89509

Contact: Mark Gilmartin

Phone: (800) 827-2249

Fax: (775) 826-4653

E-mail: info@hioi.com

Web site: hioi.com

An MGA/program administrator operating in all states and offering limits of $1 million. Target markets are hole-in-one and putting contest insurance, as well as price indemnification. The Insurance Corporation of Hannover is the A rated carrier.

K&K Insurance Group, Inc.

1712 Magnavox Way

Fort Wayne, IN 46804

Contact: Dale Johnson, Mark Herberger, Kathy McKee

Phone: (800) 553-8368

For Canadian risks: (800) 753-2632

Fax: (219) 459-5624

E-mail: kk_eventsattractions@ kandkinsurance.com

Web site: www.kandkinsurance.com

A managing general underwriter operating in all states and offering GL limits of $16 million (higher limits available) in-house. Target markets are amusement parks and rides, animal rides, bowling centers, miniature golf, family fun centers, canoe trips/whitewater rafting, outfitter and guides, horse and carriage rides, camps and campgrounds, paintball centers, tennis and racquetball centers, trail rides, and water parks. Other coverages offered are liquor liability, vendor coverage, ride liability, fireworks liability, property, business income, commercial auto, inland marine, crime, workers comp and EL. TIG and Great American Assurance are the A rated carriers.

H.R. Keller & Co., Inc.

1520 Sheridan Dr.

Buffalo, NY 14217

Contact: John Barton, Rob Martin

Phone: (800) 424-2202

Fax: (716) 874-4920

A general agent/MGA that operates in NY only. Limits vary by company. All classes are considered. Various admitted and non-admitted carriers are used.

London American General Agency, Inc.

10085 Carroll Canyon Rd., Ste. 100

San Diego, CA 92131

Contact: Greg Liewald

Phone: (858) 547-9000

Fax: (858) 547-9199

E-mail: gliewald@londonamerican.com

Web site: londonamerican.com

An MGA/E&S broker that operates in CA only, offering limits of $2 million with excess available. All classes are written except for hot air balloon rides. Other coverages offered are property, inland marine and excess. Scottsdale, Evanston, Century Surety and American Equity are rated A or above.

Market Finders Insurance Corp.

P.O. Box 6549

Louisville, KY 40206

Contact: Karen Cornett, Charlene Curry, Susan Hudgins

Phone: (800) 626-5560, Ext. 5923

E-mail: kcornett@mfic.com

Web site: www.mfic.com

A broker operating in IN, KY, OH, SC, TN and WV with limits of $1 million/$2 million. Carriers are Colorado Western and Genesis Indemnity.

Marnitz & Associates Insurance, Inc.

P.O. Box 4084

Lexington, KY 40544

Contact: Chris Marnitz, Ext. 106

Phone: (859) 223-6728

E-mail: chris@equirisk.com

Web site: www.equirisk.com

An agency/broker that operates in all states with underlying limits of $1 million/$2 million and $5 million umbrella. Target markets are equine/horse-related risks. ACE Group and Great American are the A rated companies.

G.A. Mavon

10 W. Chicago Ave.

Hinsdale, IL 60521

Contact: Karen Bowler

Phone: (877) GAMAVON (426-2866)

E-mail: karen@mavon.com

An MGA/E&S broker that operates in all states except DE, CT, MA, ME, MN, MS, NH NY and TX, with limits of $300,000 to $1 million. Carriers are Colorado Western and Genesis Indemnity, rated B and above.

NorthCoast Excess & Surplus, Inc.

2244 East Enterprise Pkwy.

Twinsburg, OH 44087

Contact: Jeff Burke

Phone: (330) 405-9890

Fax: (330) 405-9893

An E&S broker operating in OH and offering up to $2 million/ $2 million in limits. Will consider most classes with property, inland marine and umbrella also offered. Various admitted and non-admitted A rated carriers are used.

Prime Insurance Syndicate, Inc./I.E.B.S.

311 S. Wacker Dr.

Chicago, IL 60606

Contact: Rick Lindsey, Terry Kitter

Phone: (800) 257-5590

E-mail: rjl@primeis.com

Web site: primeis.com

An insurer that operates in all states with limits of up to $1 million/$2 million. Will consider all risks. Prime is rated B-. A rated Lloyd's is also a carrier.

Roush Insurance Services, Inc.

P.O. Box 1060

Noblesville, IN 46061

Contact: Gail C. Pierce, Anthony W. Armor

Phone: (800) 752-8408

Fax: (317) 776-6891, 6892

E-mail: gail.pierce@roushins.com tony.armor@roushins.com

Web site: www.roushins.com

An MGA that operates in IL and IN only. Limits offered are GL $1 million/$2 million aggregate with excess up to $20 million, and property limits $1 million in-house. Higher limits are available. Target markets are trail rides, water parks and hot air balloon rides. Other coverages offered are workers comp, C&O, auto, and umbrella/EL. Carriers are Scottsdale, National Casualty, American Equity, Associated International, Evanston, and Century Surety, all A rated or above.

Robert A. Schneider Agency

5620 Smetana Dr., Ste. 350

Minnetonka, MN 55343

Contact: Jody Stolp

Phone: (800) 862-6038

Fax: (952) 938-0701

Web site: www.rasinc.com

An MGA/E&S broker operating in IA, ND, MN, SD and WI, and offering limits of $1 million/$2 million. All classes are considered; also offered are auto, property, inland marine and liquor liability. Nautilus, Penn America, American Equity, Essex and First Financial are the carriers.

S.H. Smith & Co.

41 N. Main St.

West Hartford, CT 06107

Contact: Jeff Parmenter

Phone: (800) 356-0168

Fax: (860) 561-3606

Web site: www.shsmith.com

An MGA operating in CT, MA, MN, NH, NY, OH, RI and VT, offering limits of up to $10 million. No amusement parks are written. Carriers are Nautilus, U.S. Liability and Northland.

Tennant Risk Services, Inc.

99 Pratt St., Ste. 200

Hartford, CT 06103

Contact: James Fitzsimmons

Phone: (860) 527-9717

Fax: (860) 527-2438

Web site: www.tennant.com

A broker/E&S broker that operates in all states with various limits available. All A rated carriers are utilized.

Unifax Insurance Systems, Inc.

23251 Mulholland Dr.

Woodland Hills, CA 91364

Contact: Sue Vier

Phone: (800) 669-9800

Fax: (818) 591-9856

An MGA operating in CA only and offering limits of $1 million/ $2 million. Target markets are bowling centers, canoe trips/river rafting, golf driving ranges, horse/carriage rides, campground owners, and tennis/ racquet ball centers.

A rated or above carriers are used.

Venture Programs

P.O. Box 1329

West Chester, PA 19380

Contact: Mary Joan Gardler, Bill Dalton, Dave Callaghan

Phone: (800) 282-6247, Ext. 270

E-mail: marketing@ventureprograms.com

Web site: www.ventureprograms.com

A program specialist that operates in all states. Limits offered are $1 million/$2 million GL, with umbrella available to $50 million including E&O/EPLI exposure; property--no limitation. Target market is driving ranges. Other coverages offered are pollution liability, accidental death and dismemberment, tee-to-green, D&O/EPLI, and third-party discrimination. Chubb and Legion are the A rated or better carriers. *