Boxoffice-October.04.1952

WHAT DO YOU KNOW
ABOUT THEATRE INSURANCE?
When Your Protection is Planned
You Can Get More for Your Money
by D. K. MacDONALD'
Whether you get the illusion or the
substance of security in your insurance
program will be determined in part alone,
by the amount of money you are willing
to pay for your insurance protection.
Equally important is the provision of those
services which are available from your insurance
agent or broker. The purchasing
of insurance entitles you to more than the
delivery of the policies or the payment of
the loss in the event of a fire or accident.
This points up one of the basic reasons
for disillusionment on the part of the insured
theatre owner after he has suffered
severe monetary loss as a result of an exposure
against which he was not adequately
protected. He had assumed that he was
"completely" protected against the loss
which occm-red. After the fire, damage
suit, or accident, he discovers there are
holes in his insurance program overlooked
by both himself and his agent or broker.
The missing element was the services
which should have been provided to tailor
the insurance program to fit the owner's
individual business needs. There is no such
thing as a "ready-to-wear" insurance program
which will exactly suit the needs of
every theatre owner. In each case, those
coverages only, must be selected which will
meet the individual requirements of that
specific enterprise. Proper selection of
those coverages can only be made if certain
essential services are provided by your
insurance agent or broker.
Care should certainly be taken in the
selection of the agent or broker who will
handle your insurance coverage. There are
experts in the insurance field just as there
are experts in the business of exhibiting
films. They, like you, are known by their
reputation in the business world.
In addition, however, the theatre owner
must be sufficiently informed about the
services which his agent or broker can
provide. He at least shares equal responsibility
with the latter, to take full advantage
of those services so that he will know
whether or not the program which is serving
his firm is fully adequate.
Just what are those services, and how
'President, D. K. MocDonald 8. Co., Inc., Seattle
can the theatre owner take advantage of
the information when received to see that
he is provided with a well-balanced insurance
program?
1. Insurance Summary. A quick reference
resume of all your current coverages, prepared
in easily digested form summarizing
the provisions of each policy, would save
time and effort in reviewing your insurance
program. Such a summary kept up to
date would make it much easier to catch
the unprotected exposures.
2. Insurance Costs. An annual request for
an appraisal of your insurance costs, together
with recommendations for reducing
the over-all premium expense would keep
the agent or broker alert for the current
requirements of your business. If you have
purchased your insurance from several
agents or brokers there will almost certainly
be some cross-coverages which can
be eliminated, as well as other economies
which can be effected.
3. Inspection of Premises, if the agent or
broker does not have a qualified engineer
in his employment he can use the services
of those representing the insurance companies
with which he has placed the insurance.
An inspection of your premises by
an engineer may determine whether the
fire rating on which your insurance rate
is based is correct and not excessive. He
will at the same time inspect your building
for existence of special hazardous conditions.
On the basis of his findings, a fire
and safety engineering report may be prepared
to pass on to the specialist of the
organization. A properly prepared report
will include recommendations for controlling
hazardous conditions and clear, concise
advice on providing adequate insurance
for the inspected risks.
4. Uninsured Risks. Consideration should
be given to insuring every possible exposure
that could develop a severe financial loss.
A theatre owner owes to himself and his
employes the knowledge of the types of
coverages available to his business, and the
cost of each. As situations change and the
business grows, each rejected coverage
should again be considered as the coverage
afforded may have become a major need i|
the overall insurance program.
5. Appraisals, in these days of staggerinl
building costs, Jthe insurable value of youl
premises may easily be worth twice or evel
three times the value you carry on youl
books. As most business risks are coverel
with fire insurance policies containinH I
Average Clauses it is essential that t\r9 '
values insured agree with this clause ci
you may be faced with severe co-insuranci
penalties in the event of partial losse
Though there is no agent or broker qual:
fied to perform such an appraisal, they ca|
usually tell when the values are out of lir:
and suggest a good appraisal firm to do a
expert job.
6. Policy Analysis and General Recommerl
dations. Each and every policy placed ol
your business should be examined to dfl
termine if it is the right form of coveragi
to do the job it is Intended to do. Such al
examination may expose excessive or iri
adequate coverage. Appraisal can also 1:1
made of your insurance management froiT
the standpoint of efficiency, for slipsho!
management could lead to slipshod seT\\
ices. Every effort should be expended tl
see that all recommendations for insuranq
coverages are completely unbiased.
7. Continuous Counsel. Like the famil
doctor, the insurance agent or broke;
should be called upon for counsel as a cort
tinuing service to help you keep your irj
surance program in a state of health. /|
the family doctor calls in the specialist i'<
needed, the insurance agent or brok(
knows the specialist in the insurance fiel
and can call on these experts as the situ£
tion warrants.
If the many services shown are requeste
and are provided, you will receive a souni
long-range plan for development of an ir
tegrated program. Your over-all insui
ance protection is strengthened throug
more effective distribution of coverage. Yc
eliminate guesswork from your insui
ance buying, you are provided with all <
the essential information needed for mal
ing sound insurance decisions and as a ri
suit, you will receive more for your insui
ance money.
18
Th» MODERN THEATRE SECTIO