SPECIALTY LINES MARKETS
Pay for play
By Larry G. France
What are "pay for play" risks? Basically, they are some form of entertainment, sport and/or amusement that requires the payment of a fee from participants before they can take part in the activity. Some examples are:
* Amusement parks
* Amusement rides
* Animal rides
* Bowling centers
* Miniature golf
* Canoe trips/river rafting
* Golf courses
* Horse & carriage rides
* Water parks
* Paint ball centers
* Tennis/racquet ball centers
* Trail rides (equine)
* Campgrounds
All of the above can be found in The Insurance Marketplace directory or on www.insurancemarketplace.com.
Several require special expertise--amusement parks, rides, and water parks, particularly. In order to maintain a viable market, a resource must pay special attention to loss control and claims expertise.
In the past, these three categories had been in a position where there were very few choices. One of the factors that affected this was that markets were jumping on the bandwagon with a "sales pitch" of low rates but with no knowledge of the risk. Also, many did not bring sterling financials to the table. Unfortunately, some existing markets fell into the trap of trying to match these rates, and this played severe havoc with their loss ratios. Today, the survivors have vowed to maintain underwriting discipline. If this policy is not adhered to and the temptation to return to matching unrealistic rates is not suppressed, the pain will be much more severe this time.
Richard McSweeny of McSweeny Agency, an E&S broker in New Jersey, says, "It is very important to use companies that are financially strong so they will be there for the renewals and to pay claims." When selecting a carrier, McSweeny adds, look for one that does not bounce in and out of the classes.
New producers will find that bowling alleys, miniature golf courses, and tennis/racquetball centers are good targets. There are usually several in almost every area and, as a whole, they are more stable than paint ball which may or may not stay around for the future.
Future Specialty Lines articles
will focus on Professional Liability (October), Apartment/Condominiums (November) and, in December, a preview of the specialty lines market for 2005. Our 2005 Insurance Marketplace directory will also be published and distributed in December.
The following have responded to our survey and have indicated that they are a market for Pay for Play risks. Look closely at each listing for target risks and areas of operation.
Aberdeen Insurance Group
1364 Welsh Rd., Ste. E2
North Wales, PA 19454
Contact: Tom Downie
Phone: (800) 845-4150
E-mail: aberdeeninsgrp@hotmail.com
Web site: www.aberdeeninsgrp.com
An E&S broker that operates in DE, MD, PA and NJ with limits of $1 million. Target classes are outfitters and guide, water parks, camp-grounds and special events. Various carriers are used to place coverage.
American Wholesale Insurance Group
110 William Street, 21st fl.
New York, NY 10038
Contact: Carolyn V. Norton, Kelly Carney
E-mail: carolyn.norton@amwins.com kelly.carney@amwins.com
Web site: www.amwins.com
An MGA/broker that operates in all states with GL limits of $1 million/$2 million and excess up to $20 million. Target classes are special events, amateur sports, recreation centers, restaurants, sports clubs, swim clubs adult entertainment, mini golf, golf courses, tennis/racquet ball centers, venues, professional sports, and bowling centers. Will not consider amusement parks, amusement rides, water parks, campgrounds, trail rides, canoe trip/rafting, paint ball, or horse and carriage rides. Can offer event cancellation, non-appearance, prize indemnity, hole-in-one, and weather insurance. All carriers are A rated and are nonadmitted.
The Equestrian Group
P.O. Box 9957
Phoenix, AZ 85068
Contact: Brent Allen
Phone: (800) 874-9191
Fax: (602) 992-8237
E-mail: ballen@eggroup.com
Web site: www.eggroup.com
An MGA operating in all states except AK and HI with limits of $10 million. Target classes are recreational equine risks: guided trail rides, pony rides, carriage/wagon rides, riding instruction, dude/guest ranch, riding clubs, and horse shows/rodeos. Will not write unguided trail rides. Can also offer property, CCC, and auto. Travelers, American Bankers, Tudor, Diamond States, and Gulf are the A rated carriers.
Evolutions Insurance Brokers International (EIB International)
8722 S. Harrison St.
Sandy, UT 84070
Contact: F. Darrell Lindsey
Phone: (877) 678-7342
Fax: (801) 304-3800
E-mail: fdl@eibdirect.com
Web site: www.eibdirect.com
An E&S broker operating nationwide with all limits available. Will consider all types of risks. Carriers are Prime Insurance Syndicate, Inc., (B- rated) and Lloyd's (A range).
Fairway Underwriters, Inc.
191 Pawtucket Blvd.
Lowell, MA 01854
Contact: Fran Coulter
Phone: (800) 662-2141
Fax: (978) 454-8740
Web site: www.fairwayunderwriters.com
A program manager that operates in all states except AK and HI. Target classes are golf courses, daily fee, and private/semi-private country clubs. Will not consider municipal risks, Can offer herbicide/pesticide, stated valve equipment, and "tee to green." Hanover is the A- rated carrier.
Gateway Underwriters Agency
1714 Deer Tracks Trail, Ste. 210
St. Louis, MO 63131
Contact: Mary Beth Fox, Ext. 112; Barb Smeltz, Ext. 114
Phone: (800) 325-7652
Fax: (314) 238-0065
Web site: www.gua-stl.com
An MGA operating in IA, IL, KS, MO and NE with limits of $2 million/$2 million. Target classes are inflatable rentals, go kart tracks, paint ball fields, and mechanical bulls. Can offer property and inland marine. Carriers are National Fire and Marine, Nautilus, Western World, Scottsdale, and USLI.
Harry W. Gorst Co., Inc., and Compass Insurance Group of Agencies
9310 Topanga Canyon Blvd.
Chatsworth, CA 91311
An MGA/E&S broker that operates in CA only with limits of $1 million/$2 million. Target classes are campground owners, tennis/racquet ball centers, miniature golf, and bowling centers. Will not write amusement rides, canoe trips/river rafting, water parks, paint ball centers, or trail rides (equine). The nonadmitted carriers are Scottsdale and Western Heritage, both rated A+.
Hole In One International/Odds On Promotions
6195 Ridgeview Ct., Ste. A
Reno, NV 89509
Contact: Customer Service
Phone: (800) 827-2249
Fax: (775) 826-4653
E-mail: hioi.com
Web site: www.hioi.com
A purchasing group that operates in all states with limits of $1 million. Will consider all classes. Can offer prize indemnification. The A rated carrier is Insurance Corp. of Hannover.
Izzo Insurance Services, Inc.
7234 W. North Ave.
Elmwood Park, IL 60707
Contact: Michael C. Jones
Phone: (800) 800-1704
Fax: (708) 452-1777
Web site: www.izzoinsurance.com
A wholesaler operating in all 50 states with limits of up to $1 million. Target classes are bowling centers, miniature golf, and golf courses. Will not consider amusement parks, rides, water parks, and animal rides. Can offer workers comp and EPL. The A rated carriers are ACE, Hartford, AIG, Zenith, and Technology.
Jacobs & Associates
8227 Brecksville Rd.
Brecksville, OH 44141
Contact: Jim Jacobs, Beth Jacobs, Vince Momosor
Phone: (440) 838-1870
Fax: (440) 838-0742
Web site: www.jacobsnow.org
An E&S broker that operates in OH only with limits of $1 million/$2 million, plus umbrella and excess. Target classes are campgrounds, golf, tennis/racquet ball centers, and amusement centers. Will not write inflatables. Can offer property, inland marine and excess. Scottsdale, Western Heritage, Colony, and Mt. Vernon are the carriers.
K&K Insurance Group, Inc.
1712 Magnavox Way
Fort Wayne, IN 46804
Contact: Marketing Representative
Phone: (866) 554-4636
Fax: (260) 459-5967
E-mail: kk_general@kandkinsurance.com
Web site: www.kandkinsurance.com
Canadian risks:
(800) 753-2632
(905) 602-9141
An MGU that operates nationwide with in-house authority--capacity may vary by program or class of business. Target classes are camps, tennis/racquet ball centers, health clubs and fitness centers, bowling/billiard centers, casinos, bingo halls, canoe trips/whitewater rafting, outfitter and guides, carriage rides, zoos and aquariums, dance schools, gymnastics clubs, martial arts studios, special events, and sports complexes. Will not consider parasailing, watercraft rental, ski resorts, amusement parks, family fun centers, or camp-grounds. Can offer full commercial package for most programs, including: GL, liquor liability, vendor coverage, ride liability, fireworks liability, property, business income, commercial auto, inland marine, crime, and excess liability. Carriers may vary depending on program and/or class of business; all are rated Excellent.
London American General Agency, Inc.
P.O. Box 919243
San Diego, CA 92191
Contact: April Taylor
Phone: (858) 547-9000
Fax: (858) 547-9199
E-mail: ataylor@londonamerican.com
Web site: www.londonamerican.com
An MGA/E&S broker that operates in AZ, CA and NV. Target classes are amusement parks/rides, animal rides, miniature golf, canoe trips/river rafting, horse and carriage rides, water parks, paint ball centers, tennis/racquet ball centers, trail rides (equine), and campground owners. Will not write golf courses and bowling centers.
M.J. Hall & Company, Inc.
709 N. Center St.
Stockton, CA 95202
Contact: Norm Amick, Ext. 1
Phone: (800) 948-8944
Fax: (209) 465-3843
E-mail: norm@mjhallandcompany.com
Web site: www.mjhallandcompany.com
An MGA/E&S broker operating in AK, CA and NV with limits of $1 million to $25 million. Will not write trail rides (equine). Can offer property, inland marine, and crime. All carriers are rated A- or better.
M.J. Kelly Co., Inc.
4415 E. Sunshine
Springfield, MO 65809
Contact: Heather Duffield, Shawna Cooke, John Jennings
Phone: (800) 725-7211
Fax: (417) 883-7103
E-mail: hduffield@mjkelly.com
Web site: www.mjkelly.com
An E&S broker operating in AR, FL, IA, IL, KS, MO, MS, OK and TN with limits of $1 million/$2 million. Target classes are amusement parks/rides, canoe trips, horse rides, hot air balloon rides, trail rides, and water parks. Can offer special events, liquor liability, and property. All carriers are rated A+.
Marnitz & Associates Insurance, Inc.
P.O. Box 4084
Lexington, KY 40544
Contact: Chris Marnitz, Ext. 106
Phone: (859) 223-6728
Web site: www.equirisk.com
A broker that operates in all states with limits of $5 million. Target class is equine. Can offer farm and ranch P-C. ACE, American Bankers, and Great American are the carriers.
McSweeny Agency (E&S)
505 High St., 2nd fl.
Burlington, NJ 08016
Contact: Richard McSweeny, Ext. 13
Phone: (609) 387-0101
Fax: (609) 387-7171
E-mail: rmcsweeny@mcsweenyagency.com
An E&S broker operating in NJ and PA only with limits of $1 million. Target classes are golf driving ranges, miniature golf, tennis/racquet ball centers, exercise and health facilities, and hunt clubs. Can offer property, inland marine, liability, and excess. All carriers are A rated.
NIF Group/NIF Pro
30 Park Ave.
Manhasset, NY 11030
Contact: Consult Web site for list of offices
Phone: (800) 892-8892
E-mail: marketing@nifgroup.com
Web site: www.nifgroup.com
An MGA/E&S broker that operates on an admitted basis in AR, AZ, CT, DC, FL, GA, IN, MA, MI, MN, MS, NC, NH, NJ, NY, OH, PA, RI, TN, TX, UT, VA and WI with limits of $1 million. Can offer umbrella and excess. All carriers are A rated.
Philadelphia Insurance Companies
One Bala Plaza, Ste. 100
Bala Cynwyd, PA 19004
An insurer that operates in all states except LA with limits of up to $10 million. Target classes are miniature golf courses, golf courses and bowling centers. All carriers are admitted and are rated A+.
Prime Insurance Syndicate Inc./I.E.B.S.
P.O. Box 4439
Sandy, UT 84091
Contact: Rick J. Lindsey
Phone: (800) 243-8181
Fax: (801) 304-3702
E-mail: rjl@primeis.com
Web site: www.primeis.com
An insurer (Prime)/MGA (IEBS) operating nationwide with all limits available. All risks are considered. Prime is rated B-, and Lloyd's is rated in the A range.
Quaker Special Risk
P.O. Box 415
Sea Girt, NJ 08750
Contact: Frank Walsh
Phone: (800) 447-4180
Fax: (732) 223-9072
Web site: www.qsr-insurance.com
An E&S broker that operates with limits of $1 million/$2 million. Target classes are go kart tracks, amusement parks, amusement device rentals, in-line skating parks, paint ball centers, animal rides, bowling centers, rock climbing centers, guides/outfitters, and mechanical bulls. Will not write water parks. National Fire & Marine and Nautilus are the carriers.
Robert A. Schneider Agency
5620 Smetana Dr., Ste. 225
Minnetonka, MN 55343
Contact: Jody Stolp
Phone: (952) 938-0655
Fax: (952) 938-0701
Web site: www.rasinc.com
An MGA/E&S broker that operates in IA, MN, SD, WA and WI with limits of $2 million. Target classes are paint ball, go karts, golf, and kiddie rides. Will not consider auto racing. Can offer auto and property. Carriers are Nautilus, Essex, Penn America, and Burlington.
Roush Insurance Services, Inc.
P.O. Box 1060
Noblesville, IN 46061
Contact: Scott Sackers, Tony Armor
Phone: (317) 776-6880 (IL, IN) (800) 752-8402
E-mail: scott.sackers@roushins.com tony.armor@roushins.com
Fax: (317) 776-6891
Web site: www.roushins.com
An MGA that operates in IL, IN and OH only with GL limits of $1 million/$2 million with excess up to $20 million, and property of $1 million in-house with higher limits available. Target classes are hole-in-one, moonwalks, carnivals, and children's rides. Will not consider trail rides, water parks, hot air balloon rides, or rain insurance. Can offer D&O, auto, and excess/umbrella. The carriers are Atlantic Casualty (rated A-), Century Surety (A-), Evanston (A), Essex (A), and Scottsdale (A+).
Russell Bond & Co., Inc.
295 Main St., Ste. 866
Buffalo, NY 14203
Contact: Jeff Latke, Ext. 147; Chris Moyer, Ext. 149; Mike Kraus, Ext. 330
Phone: (800) 333-7226
Fax: (800) 677-6779
E-mail: info@russellbond.com jlatke@russellbond.com cmoyer@russellbond.com mkraus@russellbond.com
Web site: www.russellbond.com
An MGA that operates in NY state only with limits of $2 million/$3 million and higher. Target classes are kiddie rides, canoe trips, golf driving ranges, campground owners, horse/carriage rides, miniature golf, and tennis/racquet ball centers. Will not consider inflatable amusement devices, adult amusement rides, bungee jumps, ATV rentals, paint ball games and go karts. Can offer GL, liquor liability, and excess liability. All carriers are rated A- or better.
Western World Insurance Co.
400 Parson's Pond Dr.
Franklin Lakes, NJ 07417
Contact: Timothy P. Hochkeppel
Phone: (201) 847-8600
Fax: (201) 847-1010
Web site: www.westernworld.com
An insurer that operates in all states with limits of $1 million/$2 million GL. Target class is smaller/lighter risks. Will not consider trail rides. Can offer GL. Western World and Tudor are the A+ rated carriers.*
