However, knowing that insurance could be dropped and that insurance rates will most likely be increasing by 30%-1,000% can help owners prepare for it.
Every business needs to be proactive on its insurance renewals. As someone with a financial background and the owner of entertainment parks, I believe you need to be reaching out to your brokers, or even shopping for a new broker if you are not getting results. You also need to ensure you are getting the right insurance. As FEC owners, we can’t operate without liability insurance, period. Brokers may be excluding some coverages to reduce rates.
Brokers are the intermediary between you and the insurance company, and I’ve learned that they don’t always have your best interest in mind. Businesses need to read a lot of reviews and reach out to a multitude of brokers. Don’t give up on the first 20 or the second 20 insurance companies — or in my case, 50+ insurance companies — but do ask questions.
Even after finding the right broker who can negotiate an affordable renewal price, businesses have to anticipate that their rates will be higher, and perhaps much higher, in 2022. Say your insurance increases by 300%. Suddenly, your general liability premium increases from $200,000 to $600,000.
The bottom line is that amusement park, water park and FEC owners have a price increase coming, and they have to prepare for it. How are you going to stage this? You’re going to have to pass on some of the price increase to your guests or whoever is purchasing from you as well as potentially carry some of it yourself.