Transcript Slide 1
CLAIMS
&
COVERAGES
for party equipment rentals
TODAY WE WILL REVIEW
- Claims in the equipment rental 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...
(Tuesday, March 10, 2009) - At a mall in Cutler Bay, Florida, a
12 month old boy suffered severe head injuries
when he fell 2-3 feet from a mechanical kiddie train. He landed on his head, then was partially run over by the train before it could be stopped.
The boy died
from his injuries on March 17, 2009.
(May 2, 2009) - An
8 year suffered minor injuries
from a
mechanical swing ride
in a fall at a carnival in Orangeburg, South Carolina. Investigators believe that the child began to come out of the swing as the ride was slowing to a stop. "
There was no apparent malfunction of the machinery
," said a fair spokesman, and the child's size was not thought to be a contributing factor in the accident. The ride passed a state inspection two weeks before.
(May 2, 2009) - In Lumberton, Texas, a
14 year old girl
was injured after falling through an inflatable slide that had
ripped open from top to bottom
. The girl fell 26 feet to the ground and suffered a fractured arm, a bruised hip bone, and a concussion.
(June 21, 2009) - In Denison, Texas, a 17 year old boy
was left partially paralysed
when he fell on his neck after a back flip while playing on an inflatable ride.
TOP
It all starts out as fun...
(June 4, 2011) - In Oceanside, New York, three inflatable castles with children inside them were blown through the air in a gust of wind.
Seventeen people were injured
some of whom were struck by the inflatables once they hit the ground and started rolling. One person was hospitalized with critical injuries; the others were treated at hospitals for minor injuries. The company owner said that all of the
inflatables were anchored properly.
Chairs were rented for a meeting. A guest sat down on the chair and the front leg snapped and broke off. The guest fell forward onto her knees and tried to catch herself with her hands. The guest alleged she suffered from back pain and headaches after the fall. The chair leg was reported to be rusted. The rental store had recently painted all of the chairs prior to this event and did not notice the rusted leg.
So you want to know what causes your insurance to increase?
Attorneys
gotta have them...
Attorneys Smile
Consider today's class your shark net
What drives the price of insurance?
Claims Frequency Severity of Claims Volume of Premium Availability of Markets
#
What is the cheapest insurance I can get by with?
Life Insurance Disability Insurance General Liability Health Insurance Professional Liability
Glad you asked,
What kind of coverage do I need?
just a few…
Commercial Inland Marine Worker’s 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 training for sensitive issues?
Do you have a written procedures manual?
Why Abuse and Molestation Coverage is important today!
1 2 3 4 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
1 2 3 Property or Inland Marine Coverage This 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
Commercial Auto You need to think about this...
1 2 This coverage provides liability, medical, uninsured motorist, under insured motorist, collision, comprehensive, rental car reimbursement and towing. Trailers also.
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
1 Excess Accident Medical 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.
2 3 4
Workers Compensation
1 This coverage is for employees.
Optional coverage available for YOU.
Mandatory in most states.
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 2 3 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.
Types of EPLI Claims Defense Cost From $ $
Sexual Harassment Breach of employment contract Discrimination Wrongful Termination Failure to employ or promote
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…
Entities that would be named in a lawsuit by an injured party
Sponsors City, State, County Entertainment Venue Inflatable Business Owner Sub-Contractors So if there is a claim for a covered activity during set-up, during the event, or take down, the policies would provide defense coverage for the additional insured’s
Tips to minimize your exposure
Have trained employees Follow safety guidelines EVERY time Have correct signage Have correct wording in your rental agreement and contract Do not copy someone else’s waiver and contract from the internet Protect stakes and generators with cones Take pictures of set-up & take-down
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