Family Entertainment Centers - IAAPA

SPECIAL REPORT
The Price Is Right
FUNWORLD went into the field to ask FEC operators how they shop
around for the best insurance rates and coverage for their facilities
Michael C. Getlan doesn’t struggle when asked how family
entertainment center operators can get the best insurance
rates for their facilities. In fact, living up to his colorful job
title, he barely lets the reporter finish the question. “The
answer to that is very simple: You shop,” says Getlan, director
of enthusiasm and opportunity for Amusement Consultants
Ltd., based in New Rochelle, New York.
He recommends three quotes as a “smart minimum”—a
number echoed by Dorothy E. Lewis, vice president of
marketing for Fun Station Associates in Danbury,
Connecticut.
She also advocates
soliciting all-inclusive
carriers to limit the number
of bills to pay. Certain
insurance companies might
not cover common activities
such as roller skating or
attractions such as
inflatables.
In addition, contact
industry-endorsed vendors
first when doing the allimportant
shopping. “It’s
easier to use someone familiar
with your business,” Lewis
notes. “Others might not have the best knowledge of your
industry and not give you the right coverage.”
There’s no need to reach out to a fly-by-night insurance
company, Getlan adds. The amusement business has enough
reputable, long-standing names that understand the
intricacies and inherent risks of operating a successful FEC.
“We’re already speaking the same language,” he says.
This language, however, may have different dialects.
After filling out numerous pages of paperwork,
Companies X, Y, and Z will each give you a quote. If
Company Z’s figure soars above or dips well below the other
two, take a close, hard look and examine all the details,
Getlan stresses.
Make sure you’re comparing apples to apples, and see
what’s covered and what the exceptions might be, he says,
F.I.R.S.T. Program
IAAPA recently announced the debut of an
insurance plan available to FEC members. The
program, called F.I.R.S.T. (FECs, Insurance, Risk
Management, Service, Training), includes the
following: competitive insurance premiums,
premium incentives for facilities with good safety
and risk records, best-practices training, web-based
claims reporting and tracking, on-site safety
inspections and follow-up, plus more. For details,
contact Dave Harris at American Specialty at
+1 260/673-1115 or at dharris@amerspec.com.
by Mike Bederka
because “you can’t have one guy quoting you based on
volume and the other guy on square footage.”
The nature of the attractions and the number of
customers constitute the two biggest factors that go into the
prices a facility receives from vendors, Getlan explains. But,
unlike amusement parks, most FECs are ungated, so
sometimes the insurance companies may work from how
much money you bring in.
He admits, though, it can be a bit of a mystery when you
see the string of numbers that follow the dollar sign.
“For the most part,
insurance is a blind item,”
Getlan says. “You don’t really
know why they come up with
what they come up with.”
However, don’t be afraid to
ask questions if you’re
displeased with the quote.
Everything, to some extent, is
negotiable, he says: “The rate
may not be, but the
conditions or criteria might.”
If you’re struggling with
constantly high and
headache-inducing bills,
Lewis suggests working with
an insurance company that offers a safety and maintenance
program. Some will do inspections to help make sure you’re
running your operation the safest way possible to help
prevent future accidents from occurring. “It’s in their
interest to look at your track record, too,” she says.
Finally, even after you sign a contract, it’s always fair
game to keep looking around at different vendors for any
better deals that may be out there for the cost-conscious
FEC operator, Getlan concludes.
“The wise person is constantly shopping,” he says.
“Complacency is a poor bedfellow. Always keep your ear to
the ground and know what’s going on.”
Keep reading upcoming issues of FUNWORLD for our continuing
coverage of insurance issues for FEC operators.
F E C E d i t i o n n F U NW O R L D C O L L E C T I O N S 3