Insurance push to save industry
A PLAN to secure the future of fun is under way with a new report revealing a discretionary mutual fund may be the only way to save the amusement industry.
The amusement and tourism industry has been struggling to secure public liability insurance since the Covid-19 pandemic began with many businesses unable to renew existing policies or take out new ones.
The cover became virtually unattainable after insurance companies either priced people out of the market or refused to cover the industry at all in a response to the uncertainty of the coronavirus pandemic.
But the new report, aptly named The Show Must Go On, takes a deep dive into whether the discretionary mutual fund (DMF) would work.
Australian Small Business and Family Enterprise Ombudsman Bruce Billson found that a DMF would be a suitable way to address the issues, but the sustainability and durability of the DMF would rely on legislative reform from the states and territories, the make-up of the final membership, the cost of premiums and reinsurance and the size of any claims within the first few years of operation.
“The lack of insurance coverage could lead to the closure of businesses in the amusement and leisure sector, significant job losses (particularly in regional areas), stranded assets and loss of economic activity generated by metro and regional shows and amusement parks,” Mr Bilson said.
However, the report also found that a new player had entered the market, but was offering double the premium rates previously available and was not providing the full $20m coverage required by states and territories. Australian Amusement, Leisure and Recreation Association Inc, which is behind the push for a DMF, is hoping to draw a line in the sand after 18 months of issues with public liability insurance.
President Shane Mcgrath said the organisation had also completed the feasibility study into the DMF.
“It’s AALARA’S opinion that the DMF is the only strategic solution … something that will never go through this situation again,” he said.
Mr Mcgrath encouraged anyone in an industry impacted by public liability insurance issues to make a submission on the report. Brent Stevenson, who owns the Barra Fun Park, has recently been able to reopen after a long period with no insurance.
He managed to secure cover a few months ago but it isn’t perfect. “At the moment, I’m not allowed to use my jumping pillow and I’ve had a whole lot of other restrictions put on me that I haven’t had before,” Mr Stevenson said.
He backed the idea of an AALARA-LED DMF.
“If we run into any trouble, I think they will fight for us more,” Mr Stevenson said. “A DMF would be much more useful for all of us.”