claims & coverages for indoor inflatable centers
TRANSCRIPT
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CLAIMS& COVERAGES
for indoor inflatable centers
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- Claims in the indoor inflatable world
TODAY WE WILL REVIEW
- Causes of incidents
- Insurance coverage's you should have and why
- What to do in case of an incident
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Let's look at what will ruin your business...Brother jumped on claimant’s back inside boxing ring causing fall. Insured is 100% liable in this case. There were 4 people in the bouncer while 2 of the 4 were boxing. There is a maximum of 2 allowed when the bouncer is being used for boxing. There was rough housing going on, and the smaller kids were being thrown around hazardously. The employee nor the other boxer had on helmets. The little kids were allowed to jump on them, etc. The attendant interacted and participated in this activity. Lack of proper supervision, failure to enforce and follow rules, creation of hazardous condition.
Claim closed and settled at
$180,000Previous premium at $5170.00. Currently estimating upcoming year premium to be around $50,000-$60,000
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Claimant was an adult who was told he couldn’t play on the child slide but kept doing so. When coming down the slide, adult tried to jump off the slide and broke ankle/leg. Attorney alleges no signage stating no adults on the slide. Insured also doesn’t have daily inspection/safety checklist that shows inflatables were operational. Insured also didn’t require any parent or child to sign waivers.
Adult Injury on Child’s Equipment
Expenses paid $844.
Claimed closed with
payout of $115,000
Previous premium at $3500. Current premium is at $10,500
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Child was just walking to go into bouncer and fell on his head. Claimant’s mother alleges that floors were slick and wet and child was wearing socks as required by Indoor Center. Child was taken to hospital later that evening.
Slick Floors Incident
Current Reserve is at $25,000
Previous premium $5894.00
Current Premium at $10,412
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5Causes of
Claims
TOPLack of Trained Supervision
Overloaded Inflatables
Not Tethered Properly
Sudden Deflation
Maintenance
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It all starts out as fun...
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WHAT'S WRONG WITH THIS PICTURE?
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Claim settled and closed at $50,000
Previous premium is at $5963.00
Currently at $73,796
Insured used to put blower too close to slide. Claimant fell from exiting slide and hit her head against the wall and her lower back against the blower. Design on Inflatable was to put blower close and Manufacturer was put on notice. Attorney also alleged not enough signage.
Blower too close incident
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Claimant’s mother alleges that child was ejected from the obstacle course. The walls of the inflatable were considered short by the adjuster but is compliant with industry standards. The inflatable is a small course for toddlers that have blow-up dinosaurs inside. Kids would play and get on the dinosaurs. Child was ejected from the inflatable when another kid was inside the obstacle course jumping. Child hit the wall since it was against the wall and landed on her arm. The adjuster would normally decline as this is can be considered a product liability from the manufacturer. But since insured had similar incidents on the same exact inflatable, negligence is on the insured.
Expenses paid $3571 Claimed closed with payout of $28,625
Previous premium was at $2244
Current premium at $6300
Poorly Designed Inflatable
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Attorneysgotta have them...
So you want to know what causes your insurance to increase?
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Hmmm...see any similarities?Remember there are sharks in the water everyday!
Consider today's class your shark net
Attorneys Smile
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What drives the price of insurance?
Claims Frequency
Severity of Claims
Volume of Premium
Availability of Markets
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Glad you asked,
here are just a few…
Commercial Auto
Health Insurance
Disability Insurance
Life Insurance
General Liability
Professional Liability
Inland Marine
EPLI
Worker’s Compensation
What kind of coverage do I need?
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General LiabilityWhat the heck is General Liability?
2
3
1 Coverage is provided for claims of bodily injury or property damage liability on your premises or at your customer's location.
Important Note: Remember that some policies may exclude Errors and Omissions type claims related to the delivery of your professional services.
You may need excess coverage or umbrella coverage.
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Abuse and Molestation Coverage
Do you have
attendants with your
equipment?
Do you deal with children?
Do you have an Indoor
Center?
Do you have video cameras
on all angles?
Do you have
training for sensitive issues?
Do you have
a written procedures
manual?
Why Abuse and Molestation Coverage is important today!
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1
2
3
4
Hmmm...Molestation
It is a claim you can’t defend
It is an open check book for your attorney
It will probably ruin your reputation personally and as a business
It could financially bankrupt you defending your innocence
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Property or Inland Marine Coverage
2
3
1This provides coverage for your business property for fire, theft, vandalism on premises, or if Inland Marine while off premises
Covers computers, office equipment, inventory etc.
This does NOT provide coverage for equipment of others rented or borrowed
4 If you have a loan on it, it must have this coverage
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Commercial AutoYou need to think about this...
1 This coverage provides liability, medical, uninsured motorist, under insured motorist, collision, comprehensive, rental car reimbursement and towing. Trailers also.
2 Your personal auto policy has a “business use” exclusion
3 Make sure that you have non-owned/hired auto on the commercial auto policy or general liability policy
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If you use your vehicle in the course of business, you need to have a commercial auto policy. If you do any delivery, if you are picking up customers etc. If you just use your vehicle to go to do proposals to drive to site, you can get a business endorsement on most personal auto policies that will cover you.
5
4 Make sure your agent gives you something in writing that states your personal auto coverage protects you while using your car in your business.
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Hired auto coverage protects your business if you or an employee rents a vehicle in the company name and an accident occurs. Non-owned coverage protects the company if an employee has an accident in his or her own vehicle while on company business and the employee’s personal insurance is inadequate to cover the claim, resulting in a suit against your company.
6
Non-owned Auto/Hired Car
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Make sure you add your trailers
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Excess Accident Medical
2
3
1 This coverage provides medical insurance above the customer’s existing personal medical insurance if any, for medical bills that are incurred from a covered injury.
Most limits start at $10,000 and can go to $100,000 per occurrence.
There does not need to have negligence proven by a lawsuit.
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Workers Compensation
2
3
1 This coverage is for employees.
Does not cover YOU.
Mandatory in most states.
4 Does not cover sub contractors.
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Workers Comp Coverage is used to comply with the Workers Compensation Coverage required by your state law. Under this requirement, an employee can be compensated if he or she is injured while working for you, regardless of your negligence as an employer.
COVERED
COVERED
NOT COVERED
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EPLI Coverage
2
3
1 Employment Practices Liability Insurance
EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.
The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits.
Employers Practices Liability Insurance
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Types of EPLI Claims
Defense Cost From
$$
SexualHarassment
Discrimination
Failure to employ or promote
WrongfulTermination
Breach of employment
contract
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What to do in case of an incident
If there is an injury involving an entertainment device do the following:
Collect inspect and preserve the item
Preserve product in current condition
Collect statements from spectators and employees
Take pictures
Collect field records Collect product records
Store in neutral site Notify insurer immediately
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How long should you retain documents?
Unless it is a minor…
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Tips to minimize your exposure
Have trained employees
Follow safety guidelines EVERY time Have correct signage
Have correct wording in your waivers
Do not copy someone else’s waiver and contract from the internet
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www.cossioinsurance.com
864-688-0121