Lack of cover hits fun events

THE WHOLE INSURANCE INDUSTRY WHERE ANYONE IS COMING TO HAVE FUN IS GETTING A LOT TOUGHER. SHANE MCGRATH

THE crippling grip of an insurance crisis is likely to extend beyond carnival rides to sporting events and concerts as insurers withdraw to seek better returns in lower-risk markets.

Travelling carnival rides, go-kart hire and jumping castles have struggled to renew expiring policies in what could mean the death of the country show without moves to cap the maximum amount an injured party can sue for and a reduction of required cover from $20m to $10m.

Cairns business Inflatable Kingdom co-owner Lachlan Farquharson said there was a very small pool of insurers prepared to take on the risk.

“It’s getting harder and harder,” he said. “There is no set cap on what someone can sue them for if someone does injure themselves. The whole insurance industry where anyone is coming to have fun is getting a lot tougher.”

The Australian Amusement Leisure and Recreation Association has entered into a partnership with Irish firm Aon to set up an industryowned mutual fund but a successful outcome will be dependent on a pending feasibility study.

ALLARA president Shane McGrath said it all came back to risk versus cash return.

“Insurers are moving to areas that deliver a better commercial return,” he said. “Other areas are experiencing it too; building certifiers are struggling to achieve professional indemnity insurance (and) caravan parks with activities such as jumping pillows can’t get these items insured.”

Leading international insurance player Lloyd’s had previously underwritten second tier firms providing specialist cover but operated as a syndicate and couldn’t comment on a withdraw from the Australian market.

Cairns Regional Council made assurances insurance had been secured for community events and the Cairns Festival would go ahead, as planned, in September.

“(However) council may require other organisations or groups participating in the events to obtain their own personal liability coverage,” a spokesman said.

Cairns Show ride operator Tasman Pickett warned the show wouldn’t be back in 2022 unless his policy was renewed in the coming months.

“If you can’t renew your insurance policy you can’t work and that is bad, really bad. All (our) millions of dollars’ worth of equipment can’t open.”