Do you write insurance in my state? I had insurance and all of a sudden my agent said that I didn’t anymore.

Have you found yourself in one of those situations asking the same questions? The ultimate question is, “Why can’t I find insurance?” This question has plagued the inflatable industry as well as the insurance industry for quite some time. The problems stem from the infamous terrorist attacks of September 11 forward, and go back as far as when people discovered they could make money selling insurance.

I never had a claim and always paid my premiums on time. Yet my policy was canceled last week. Can you help me out?

The terrorist attacks conservatively cost the insurance industry $40 billion according to the Independent Insurance Institute (www.iii.org). Up to then, many carriers made their income from investments, not necessarily writing insurance. Now the market has changed. Insurance companies are facing financial troubles. To stay in business, companies are increasing rates. Another solution is to stop writing certain classes of business.

As an insurance consumer here is what we recommend in the inflatable industry:

1. Increase deductibles on all your coverage.
2. Credit is a big concern. Many companies will look at this and financial ratings. Therefore, have a financial statement available for insurance purposes to show a stable position.
3. Shop your insurance at least every three years. Do not change yearly trying to save a couple of dollars. This costs both you and your agent precious time. Unless there is a problem, shop it every 3 years.
4. Keep all of your insurance in one place. Discounts are available through many companies by having multiple policies. Even if it is with the same agent, it MAY still be a cost savings. It will certainly save you time when you make three incorrect calls trying to file a claim.
5. Consider your claims. Look at every claim before you turn it in. Small claims are a nuisance and may end up costing you in the long run through higher rates or non-renewal. Undoubtedly, insurance is there for the loss, but consider the cost vs. the benefit ramifications of your claim before filing it.
6. Think about your inflatable manufacturer. The manufacturer of your inflatables may also have an impact on the cost of your insurance due to safety features that they either do or don’t offer. For instance, a state may require a certification process for the manufacturer in order to qualify to be certified. This can affect your rates.
7. Ask your manufacturer, “What can I do?” By forming better partnerships between manufacturers, rental companies, and the support industries we can better bridge the gap of communication and mistrust within the inflatable industry.
8. Institute a risk management program that takes into considerations some of the following: Do you have signs posted? Do you limit your riders by size or weight?
9. Do you have a maintenance program? Your rides and games must be inspected by you at every set up and take down. Log all problems and repairs. Make the logs available to anyone who asks to review them (insurers, state inspectors, etc.).
10. Experience all of your rides. Who knows better than you how to take care of your equipment and create a safe environment for your guests?
11. Attend safety courses for your industry.
12. Take that knowledge and create a safety program within your business to train everyone who works with your games.
13. Have your guests and your staff sign releases and waivers and use your legal council to review these agreements regularly.
14. Use legal counsel that is knowledgeable and versed in the inflatable industry.
15. Know the state agency and contact information for the individual you report to for licensing and regulations. Stay informed of changing legislation.

One final consideration is that policies are typically written on an annual basis and premiums are determined annually. Do not drop your insurance during the off season. If you do it may affect your agent’s ability to secure a policy for you in the future and it may even affect your credit score.

Recently we had an underwriter inquire about a “King of the Mountain” inflatable. What he pictured was the game he had played as a child where anything goes for pushing others off the hill. Of course this raised all kinds of flags in his mind. Insurance companies need to be educated about inflatable industry. Do everything you can to help that process and that will go a long ways towards avoiding the many problems of getting insurance for your business.