Insuring your Skatepark – What is needed?

Insuring your Skatepark – What is needed?
November 11, 2019 Andrew Riordan

Skateboarding is a popular activity and skateparks are a fun and safe place for those who love skateboarding. While skateboarding is fun, getting insurance for your skatepark can feel like a daunting task.  Insurance doesn’t have to be stressful and we are here to take the stress out of getting insurance coverage. Here is a breakdown of what we need, and why, in order to quote your insurance.

The Basics:

Legal Name and Entity Type- We need to know both the legal name and any DBA names that are used for your business. We don’t ask because we are nosey, we need to make sure that the policy covers you fully, which means all of your business names need to be listed.  Is your business a corporation, partnership, LLC, or sole proprietor?

Years in Business – This one is easy! How many years have you been in business? If this is a new business, that is perfectly fine and congratulations on your new venture.  If you are a new business, how many years of experience have you have working in the industry? We do not need a full resume, just a rough estimate of how many years you’ve either owned, managed, or worked in a similar business.

FEIN –If you are a sole proprietor and do not have a FEIN, that is okay, just let us know. Similarly, if you are a new business venture and you have not gotten a FEIN yet, that is also okay.

Address – If you have one location or multiple locations, we need to know the addresses and what the nature of your business if for each. For example, you may have a skatepark at one address and a skate shop next door at another address.  We want to make sure your policy covers all locations for all operations!  We also need to know which address is your mailing address – this is where your bills and policy documents will be sent too.

Insurance History – Are you currently covered by an insurance policy? What is the effective date of your current coverage? We need to know who your prior insurance carriers were, what dates they covered you, and what their premiums were for each policy year going back five years.

Claims History – Have you had any claims in the last five years? Good claims history often gets preferred pricing.  If you have had prior insurance, we will need your loss runs, which is your claims history. Your current insurance agent can obtain these for you.

Business and Operational Details:

These are the questions that are related to your specific operations. This helps us get a better picture of the nature of your business and how to cover it full.

Estimated Gross Receipts – Your policy is written on your estimated gross receipts for the policy year. Give us your closest estimate to how much you will making for the upcoming year that the policy will cover.  Do you rent equipment? If so, we will also need to know what % of your gross receipts are from rented equipment.  Do you have a concession stand that sells food or beverages? What  % of your receipts are from food or drink sales?

Number of Employees –  How many employees do you have? Do you use any volunteers? If we are quoting your Workers Compensation insurance as well, we will need to get your estimated annual payroll for the policy term as well.

Annual Participants – Knowing the estimated number of participants gives our carriers an idea of the scope of the exposure for your park.  What is your best estimate of how many participants you will have in the upcoming year?  We will also need to know what the max number of skaters is to get an idea of your total capacity.

Waivers – Do you require waivers and/or release agreements for all adult participants and visitors and signed by a parent or a guardian for minors? Is there a waiver and/or release agreement for any equipment rental as well?

For a sport with an inherent risk like skateboarding, you want every participant to acknowledge and accept the risks involved.  Your waiver should also include the rules for the park and a signature page to acknowledge that the rules have been read and agreed too.  Keep in mind that spectators can also get hurt, so everybody entering must sign the waiver.

Signs and Rules – Do you clearly post the park rules in multiple locations throughout the park, and at each entrance? In addition to having a signed waiver, having posted rules and warnings of the risk involved in using or entering the park will help to limit your liability.  The signs should be highly visible, easy to read and posted frequently.

Supervision – Is there adequate supervision? Do you have a written protocol for enforcing rules? Carriers want to know that you have staff who are diligent in watching over the participants and that any breach in the rules will result in immediate action. Is there a PA system that allows for warnings and announcements to be made throughout the entire park at once?

Description of your Operations – In order to ensure that you have all the proper coverage, we need to have a good picture of what it is that you do. Skateboarding has a high risk of injuries for both spectators and participants, so carriers need to know what your hazards are and what you have done to minimize them.  Here are some of the questions that we will need to know:

  • Is the park indoors or outdoors? If outdoors, will it be closed during rain or other bad weather? Is there a drainage system for rain in place?
  • Is it just a skatepark or do you have retail sales as well?
  • Concessioner stand or other food/drink sales?
  • Are there any equipment rentals?  If so, what kind of equipment is rented out?
  • Size – what is the square footage of the skate park property itself. If you have retail sales, rentals or concessions, what is the square footage of each of those areas?
  • Do you require helmets and/or pads to be worn?
  • Do you have separate areas that are clearly marked for different levels of difficulty?
  • Are the tops of ramps, lips, and edges marked in a highly visible color?
  • Frequent inspections of all surfaces to look for any damaged areas?
  • If you rent equipment, it is frequently inspected to ensure it is in good, usable condition?

The above gives us a good start at getting insurance for your skatepark.  If you are in the very early stages, check out our post on how to start a skatepark.

Our agents will discuss with you the lines of coverage that you are looking for and depending on the coverage you need, we may need a supplemental application but most of what they are asking for has been addressed in the above.  While it may seem like a lot of information, each piece of information helps us work with carriers to get you the coverage that you need.

To get a quick insurance quote for your skatepark, check out our skatepark insurance page.

 

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