Entertainment specialty underwriter Take1 Insurance is offering an insurance solution to operators of escape rooms.
The insurance solution is being exclusively endorsed to members of the Association for Room Escapes of North America (ARENA).
“A new and growing live experience industry requires a custom-tailored insurance policy from the experts in live event entertainment insurance,” said ARENA secretary Daryl Davis in a statement. “We turned to Take1 Insurance to help us create a policy that cost effectively meets the unique risk needs of our membership. This policy is now available exclusively to our membership.”
The program features a general liability and property insurance package, with coverage for business interruption, hired/non-owned auto liability, as well as excess and liquor liability.
ARENA’s exclusively endorsed P&C program also allows the association’s members to access competitively priced workers’ compensation benefits.
Davis explained that the new workers’ comp solution comes after ARENA won its lawsuit against the largest rating agency in the US. A ruling passed in the case allows escape rooms to be classified under “retail” instead of the “amusement park” category for the purposes of employment and benefits.
“Virtually all escape room companies are considered small businesses by insurance carriers,” he added. “As such, there are not enough premium dollars to justify a busy underwriter taking the time to really review inherent risks (or, lack thereof).”
Escape rooms also have the distinction of being relatively new, Davis pointed out in a statement. Too new, in that it is too early to establish actuarial loss expectations for the businesses.
“Adding those two factors together equals the typical cavalcade of restrictions and exclusions that underwriters use to protect themselves from losses,” he explained.
Davis noted how Take1 has managed to create a solution that works for the niche escape room industry.
“Our carrier partner took the time to understand the industry because it sees the value in working with a trade association like ARENA,” he said. “We have created the mass required to generate adequate premium dollars for thoughtful review.”