Here at Executive Events & Entertainment have noticed a disturbing trend in the Amusement insurance industry. As a disclaimer let's start by saying that all parties will remain nameless is this article but rest assured with a little research on google, you will find the same results as us. First, it is important to go over why there is a need for insurance in the Party/Bouncer Rental industry.
Why Carry Insurance?
You may remember last month we did an article on Bouncehouse safety. This was in response to an alarming number of injuries occurring in privately owned bouncers that were being blamed on commercial bouncer rental companies. We have already pointed out that in many of the injuries you are seeing on the news, the bouncer was a privately purchased one (usually sold at larger retailers like Sam's Club or Walmart) not a commercial bouncer. Please refer to our article " Bouncer Rentals : A Dangerous Game?"
In the state of Ohio where we operate, we are required by law to carry amusement liability insurance for up to 1 million dollars (per claim). Insurance is essential because in the event that an injury does take place the insurance assures that the injured party will have all of their medical expenses paid for and then some.
As we said before the guilty parties will remain nameless but when we went to re-new our amusement insurance this year, there was a 728% increase in the cost of the plan. This increase in cost was due to...........? Actually we have no idea why they would increase our insurance cost without there ever being a single claim on our policy. This trend has been replicated by all the amusement insurance companies across the United States and Party Rental companies are suffering all over. The insurance companies claim that there has been a rise in Inflatable Amusement injuries last year which caused more claims, ergo causing the rates to rise. We are calling that malarkey. After some research you will find that there was no significant increase in bouncer related injuries and that this hike in prices is an attempt by the insurance companies to put a stranglehold on small businesses and take them for as much money as they can.
In all honesty there is no clear cut solution to this issue. If the insurance companies continue this trend, then you may see bouncer and inflatable rental companies disappear all together. You have to remember it is not major corporations that own the bouncer and party rental companies. It is local people, your friends and neighbors that own these rental companies and by allowing the insurance companies to rake them over the coal so to speak, we are effectively destroying another avenue by which small local business can flourish.