Over the last few years, trampoline parks have emerged as a major attraction for kids and adults alike all around Australia. But they’ve also attracted attention for less positive reasons; due to on-site injuries and resultant payouts, many operators are having issues securing insurance for their businesses.
Insurance Business spoke to HIB Insurance Brokers managing director Michael Alexander to get a fuller picture of some of the issues surrounding insurance in this space. He is keen to stress that the rising cost of insurance isn’t solely restricted to trampoline parks; the leisure and entertainment industry as a whole has experienced hardening as a market.
“Premiums are going up across the board,” says Alexander. “It’s a long-tail business in general, and the risks and cost are always going to be higher when children are involved.”
However, it is inevitable that certain sectors would be hit harder than others, and trampoline parks have emerged as a particular casualty. Alexander suspects that in part insurers may not have anticipated the rapid spread of trampoline parks around the country, which in turn has been a contributing factor for rising premium prices for park operators now.
“Trampoline parks have established themselves pretty quickly in Australia over the last few years,” says Alexander. “Premiums were initially set at a price insurers felt was reasonable, but it’s evident that the claims have subsequently outweighed those early prices.”
Alexander also notes that risk and claims are an inherent part of this industry – brokers looking to operate within this space need to be aware of the potential issues before they opt to enter it.
“From a broker’s perspective, you’re always going to get claims working in the leisure and entertainment industry,” says Alexander. “It’s essential to be on top of any claims when they do arise, and to handle them as quickly and efficiently as possible.”
