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Amusement Insurance: Finding the Right Plan for Your Client

When your clients operate in the amusement and entertainment industry, the risks can add up quickly. Whether they operate an amusement park, water park, or another type of recreational facility, they need to take proper precautions. This means finding a customized amusement insurance plan from a provider that understands their business and its unique risks.

Many owners and operators in the amusement and entertainment space have coverage for liability, property, and equipment. However, they tend to fall short in other critical areas that can spell ruin for their business. These areas include:

  • Umbrella and excess liability: This coverage is essential in protecting your company in the event of large liability claims.
  • Commercial auto: Covers vehicles owned or used for and by the business.
  • Inland Marine: Covers property that is not otherwise stationary or permanent including mobile rides and equipment/stock.
  • Workers’ compensation: Varies by state but is required for businesses with employees.

Any amusement insurance program you design for a client must account for all possible risks and cover every angle. The client has invested heavily in their business and is depending on you to guide them and secure their livelihood.


Also read: 5 Entertainment and Amusement Trends for 2021



Assessing the risks


Risk will always depend on how an owner operates their business. For example, a trampoline park is going to carry different risks compared to snow tubing or water parks. The only way to properly identify every risk is with a professional risk assessment. A thorough risk assessment identifies fire hazards, the potential for mechanical breakdowns, cyber-attack threats, and much more.

After risks are identified, assets that could also be impacted, like employees, customers, buildings, and reputation, must be accounted for.

Finally, other impact areas like injury, litigation, and loss should be considered. You’ll want to properly identify and present an amusement insurance plan that provides coverage for all risks when presenting to a new client.


Make everything clear


The client must understand everything the coverage bundle includes. Location, operation procedures, and other variables will impact the coverage and rates. The client should understand what their basic property insurance covers and does not cover and in what contextual circumstances. For example, it may not provide coverage during a natural disaster. If a client operates in a flood- or fire-prone area, ensure they have access to coverage for these incidents.


Also read: 3 Considerations for Reopening Waterparks



Partner with an experienced amusement insurance provider


When you need the best coverage for your clients, choose a provider with experience and an understanding of their unique business.

The McGowan Amusement & Entertainment Insurance Program can help you grow your business in this exciting market segment. Our team brings more than 35 years of expertise in risk management in this space. Contact McGowan today for help with navigating amusement and entertainment insurance challenges.

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