Inability to obtain insurance forcing ride operators to close shop

Inability to obtain insurance forcing ride operators to close shop | Insurance Business Australia

Inability to obtain insurance forcing ride operators to close shop

While jumping castles and dodgem cars are common sights in fairs and shows throughout Australia, their days could be numbered as amusement ride operators face the prospect of being unable to obtain public liability insurance coverage for their businesses.

As the last insurer offering public liability coverage exits the market, ride operators like Daniel Wilschefski are now considering closing their operations for the time being.

Read more: Public liability crisis forcing small businesses to shut down

“Once your policy expires and is due to be renewed, there is no underwriter in the market at the moment that is taking on amusement devices,” Wilschefski told ABC News. “You're basically forced to close down your operation until a solution can be found.”

According to an ABC News report, the Australian Amusement Leisure and Recreation Association is planning to establish an industry-owned discretionary mutual fund to provide support to business owners like Wilschefski, and it has already partnered with Aon to carry out a feasibility study.

For its part, the Insurance Council of Australia told ABC News that it is working to “find solutions” to the problem.

"We are working with other industry associations to find solutions to the issue of affordability and availability of public liability for tourism, leisure and some other higher-risk business sectors," the spokesperson told ABC News. "This work includes exploring options for underwriting solutions both locally and offshore."