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This case[1] speaks to the consequences of not knowing what is in your policies….

The Cleveland Indians baseball team hired National Pastime Sports to produce Kids Fun Day events at Indians baseball games. The Kids Fun Day events had children’s attractions, including an inflatable bouncy castle and inflatable slide.

National Pastime submitted an application for insurance to Doodson Insurance Brokerage, stating on the application that the Kids Fun Day events would include inflatable attractions. The policy, however, excluded from coverage injuries caused by inflatable slides.

Douglas Johnson attended an Indians game in June 2010. While admiring a wall of fame display, he was crushed by an inflatable slide that collapsed onto him. Several days later, he sadly died from his injuries.

When National Pastime informed Doodson of the accident, Doodson replied that accidents caused by inflatables were not covered under the policy.

It’s painful to read this. The owners of a business are likely facing bankruptcy, When facing the day knowing that someone died at your facility, they can’t have the comfort which comes from being able to say “at least I’m insured”.

We find things like this, before the claim.

[1] Excerpted from FC&S Legal ‘s synopsis of

Johnson v. Doodson Insurance Brokerage, LLC, No. 14–1379 (6th Cir. July 15, 2015)

Terrorism Risk Analyzed at the Next Risk Advisory Breakfast

Suffolk County (MA) District Attorney Dan Conley with be our special guest for our next meeting.

Thursday, September 24th 7:30-9 am

The Boston College Club – 100 Federal Street, 36th Floor, Boston, Massachusetts 

Join a small group of fellow CFOs, board members, legal counsel & other executives for a complimentary breakfast and an in-depth discussion about the risks that face corporations today.

THIS MONTH’S TOPIC:  TERRORISM RISK 

Mr. Conley will discuss the state of terrorism risk in the commonwealth today:

  •  Is the nature of terrorism evolving?

 

  • The relationship between local law enforcement and federal anti-terrorism units

 

  • Recent terror-related incidents in the Boston area

 

Additionally we will cover:

 

  • Terrorism insurance and risk management in relation to Mr. Conley’s comments

 

  • Should you purchase terrorism insurance – on property? on liability?

 

  • How to purchase, so you don’t get an unwanted surprise later

 

  • The latest thinking on terrorism risk management for business owners

Seating is limited – by invitation

Please RSVP with Brent Trethewey at:

BTrethewey@LicataRisk.com  or 617.312.7289

 

INSURANCE BROKER, WHAT WERE YOU THINKING

Coverage cases make fascinating reading.  We keep a close eye on them to know what clients might face. This one [1]  shocked us, not because of the court decision, which  we agree with, but with the insurance sales process which led to the result – how could anyone sell coverage like this?

The insured operates a tire company, it sells and installs tires on customers’ cars.  The first step when we work with a client is risk identification.  In that process we ask “what do you imagine going wrong?”  The client always knows their business better than we do.  So, what could go wrong in a tire business?  Consider for 3 seconds  — I bet you came up with “A tire could fail causing an accident where people are killed”.  Sadly, in this case, that is exactly what happened, a tire failed, an accident happened, two people died.

You’ve probably heard the term “product liability.”  The appropriate insurance is Products – Completed Operations insurance.  However, in this case, the insured had purchased a general liability policy, with a Products – Completed Operations exclusion; the standard coverage had been removed from the policy.

Did the insured know they were buying coverage which would not apply in the most likely claim?  Where was the broker in this thought process?

Maybe there will be another case against the broker, in the meantime, we have an uncovered suit going through the courts.

We’ll work with you on risk identification — and the next quite important step: negotiating insurance to cover the exposures identified.

[1] Atlantic Cas. Ins. Co. v. LTA Distributor, LLC, No. 14–22788–CV (S.D. Fla. June 1, 2015).

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