Wm. Haycook
APRIL/2002 |
Everyone is familiar with the classic fairy tale, Peter and the Wolf in which Peter falsely cries wolf so often that when a real wolf appears, the villagers don't believe him.
At the risk of becoming a kind of modern day Peter, I have been writing numerous columns about the potential consequences resulting from the increasing number of theatre liability and property claims.
Everyone knows that insurance losses result in higher insurance premiums. Your auto insurance increases year in and year out based in large part on the escalating cost of claims.
Until now, my "cries" have only been warnings because we have successfully worked with our insurance carriers to hold the line on premiums despite the growing number of losses.
Unfortunately, that knocking you hear really is the wolf this time.
Starting in July 2002, there will begin a mandated review of our theatre insurance program's loss history. Those theatre groups that have experienced adverse losses will see an increase in their insurance costs. Since the increase will be determined on a case-by-case basis, it is not possible to estimate the actual cost to any specific group at this time.
However, it is known that these increases will come in the form of a higher annual premium, an increase in your property insurance deductible or a combination of both.
If your insurance is affected in this manner, you will be notified at the time of your regularly scheduled renewal. Currently renewal information is mailed about thirty days in advance of the renewal date.
You buy insurance to protect yourself against losses. For more then six years our insurance carriers have been exceptionally good at paying these losses. However, until now there is one ingredient in the commercial insurance formula that has been conspicuously absent.
Despite escalating losses, your theatre insurance premiums have remained incredibly stable with no increases at all in the first five years. Over the last year, the increases have averaged only 8%.
This is extraordinary when you consider that since September 11, insurance premiums across the country have skyrocketed with reports of 300% or 400% increases not at all unusual.
Our insurance website at www.theatreinsurance.com contains a bibliography of articles written for this magazine. Many of these articles deal with loss control issues - ways to make your theatre facility safer thereby reducing the probability of a loss.
I urge you to review some of these articles and to be vigilant with regard to identifying and correcting potential hazard situations.
With increasing numbers of patrons being elderly, we all need to pay extra special attention to their needs in order to avoid slip and fall accidents.
We will continue to do everything in our power to minimize insurance increases but the loss-induced review outlined above is, unfortunately, required at this time.
If my office can be of assistance with any safety matters involving potential liability or property losses, please do not hesitate to contact my office. Your local police and fire departments should also be able to advise you.
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