Transcript Slide 1

CLAIMS&
COVERAGES
for indoor inflatable centers
TODAY WE WILL REVIEW
- Claims in the indoor inflatable world
- Causes of incidents
- Insurance coverage's you should have and why
- What to do in case of an incident
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
$180,000
Previous premium at
$5170.00. Currently
estimating upcoming year
premium to be around
$50,000-$60,000
Adult Injury on Child’s Equipment
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.
Expenses paid $844.
Claimed closed with
payout of $115,000
Previous premium at $3500.
Current premium is at
$10,500
Slick Floors Incident
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.
Current Reserve is at $25,000
Previous premium $5894.00
Current Premium at $10,412
TOP
It all starts out as fun...
WHAT'S WRONG WITH THIS PICTURE?
Blower too close incident
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.
Claim settled and closed at $50,000
Previous premium is at $5963.00
Currently at $73,796
Poorly Designed Inflatable
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
So you want to know what causes your
insurance to increase?
Attorneys
gotta have them...
Attorneys Smile
Remember
there
are sharks
Consider
today's
class
your in
Hmmm...
see
any
similarities?
the water
shark
net everyday!
What drives the price of insurance?
Severity of
Claims
Claims
Frequency
Volume of
Premium
Availability
of Markets
Life
Insurance
Disability
Insurance
Health
Insurance
General
Liability
Professional
Glad you
asked,
here are
just a few…
Commercial
Auto
Liability
What
kind of coverage do I need?
Worker’s
Inland
Marine
Compensation
EPLI
General Liability
What the heck is General Liability?
1
Coverage is provided for claims of
bodily injury or property damage
liability on your premises or at your
customer's location.
2
Important Note: Remember that some
policies may exclude Errors and
Omissions type claims related to the
delivery of your professional services.
3
You may need excess coverage or
umbrella coverage.
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!
1
It is a claim you can’t defend
2
It is an open check book for your attorney
3
It will probably ruin your reputation
personally and as a business
4
It could financially bankrupt you
defending your innocence
Property or Inland Marine Coverage
1
This provides coverage for your business property
for fire, theft, vandalism on premises, or if Inland
Marine while off premises
2
Covers computers, office equipment,
inventory etc.
3
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
Commercial Auto
You 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
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.
5
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.
Non-owned Auto/Hired Car
6
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.
Make sure you add your trailers
Excess Accident Medical
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.
2
Most limits start at $10,000 and can go to
$100,000 per occurrence.
3
There does not need to have negligence proven
by a lawsuit.
Workers Compensation
1
This coverage is for employees.
2
Does not cover YOU.
3
Mandatory in most states.
4
Does not cover sub contractors.
COVERED
COVERED
NOT COVERED
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.
EPLI Coverage
Employers Practices Liability Insurance
1
Employment Practices Liability Insurance
2
EPLI covers businesses against claims by
workers that their legal rights as employees of
the company have been violated.
3
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.
Types of EPLI Claims
Defense Cost From
Discrimination
Failure to
employ or
promote
Sexual
Harassment
$
$
Breach of
employment
contract
Wrongful
Termination
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
How long should you retain documents?
Unless it is a minor…
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
www.cossioinsurance.com
864-688-0121