Over the last couple of months we have had several instances of inflatable companies coming to us with the wrong type of insurance coverage. After further investigation we found that these business owners had gone to their local agent who provided a Business Owners Policy (BOP). While this type of policy has its place in protecting a business from potential liabilities, unfortunately, this isn’t it as amusement devices are typically listed as exclusions from coverage.
Most recently, we talked with a business owner who should have been rated for exposure at nearly $5,000 in annual premium but, instead was paying about $500 for a BOP policy. While that low premium was great for his wallet at the time, he now has the potential for financial disaster should someone sue him for injuries sustained during the period of inadequate coverage. Now, he can only hope the statute of limitations runs out before a claim is filed!
Be Aware: Amusement insurance is very specialized and there are only a handful of carriers who will even write it. The agent you use must be well versed in how it works, the limits, risk management best practices and each state’s requirements and regulations or he/she must know who to go to get the correct coverage. The EPA actually assists many agents throughout the U.S. in obtaining coverage for their insureds and has excellent relationships with all of the major carriers who write general liability insurance for amusement devices.
Our mission is to help our members create multiple layers of protection to limit liability. The EPA accomplishes this by providing proper insurance, rental agreements, liability waivers, incorporation, and safety training specific to the amusement industry.
No matter whom you use to secure your liability insurance, be sure you are fully aware of what your coverage includes and excludes.
Are you really covered?: A dangerous trend in the making. - (Read 84 Times)
Posted: Jul 15th, 2010 at 05:09 pm
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