Brokers niche cover ‘in wide demand’

Brokers niche cover ‘in wide demand’

Brokers niche cover ‘in wide demand’

Parmia Insurance expects demand for its policy covering tattoo studios to continue increasing.

According to Parmia, it caused a stir when, last November, it launched its Industrial Special Risks (ISR) policy for tattoo studios and property owners with tattoo studio occupancies.

The policy was written by Lloyd’s of London and, in conjunction with Parmia’s Medical Malpractice and Public and Products Liability Cover, offers what Parmia describes as “maximum protection and peace of mind” for professionals in all areas of the tattoo industry.

On why it started offering the coverage, Parmia Branch Manager, Danny Gumm said: “Parmia was made aware of a situation where a whole industry was under pressure due to the fact that no insurers were prepared to offer insurance cover to tattoo parlours, or any buildings that had tattoo parlours as tenants.

“This resulted from a past claims experience which was extremely adverse, and the morale risks associated through reported links with Outlaw Motor Cycle Gangs.”

Gumm said that Parmia was of the view that, with correct risk management procedures in place, the tattoo industry should be able to purchase insurance, “provided there was a means of minimising the impact of the criminal element entering this industry.

“The Governments of Australia had given a commitment to attack such gangs, through registration and additional police raids, and Parmia felt it was the right time to assist for those who demonstrated their intentions to run an honest business.”

Parmia was inundated with new business when the policies for the tattoo sector were launched. Gumm said that Parmia prided itself on not shying away from industries that are complex or have a number of challenges.

He added: “We’re proud of what we’ve developed for the tattoo sector and to be working together with professionals in this industry to develop a risk analysis that identifies their concerns and addresses their requirements.”

While the coverage is regarded as a significant breakthrough for the tattoo industry, Gumm says it’s subject to strict criteria. He said an association with a Criminal Outlaw Gang means a policy is unlikely to provide protection to the applicant, and that full coverage is generally only available for businesses that have traded for 12 to 18 months.

Gumm also said: “Where it is a requirement of that state for the tattoo clinic to be registered, no cover will be offered unless evidence is provided that such registration has been completed and/or applied for.”