{"id":307741,"date":"2021-10-21T22:01:25","date_gmt":"2021-10-21T12:01:25","guid":{"rendered":"https:\/\/southburnett.com.au\/news2\/?p=307741"},"modified":"2021-10-21T22:01:25","modified_gmt":"2021-10-21T12:01:25","slug":"insurance-crisis-hits-show-rides","status":"publish","type":"post","link":"https:\/\/southburnett.com.au\/news2\/2021\/10\/21\/insurance-crisis-hits-show-rides\/","title":{"rendered":"Insurance Crisis Hits Show Rides"},"content":{"rendered":"
\"2013<\/a>
Amusement ride operators are finding it difficult, if not impossible, to get insurance according to Australian Small Business and Family Enterprise Ombudsman<\/figcaption><\/figure>\n

October 21, 2021<\/strong><\/p>\n

An interim report detailing the insurance crisis facing amusement ride operators was released this week by the Australian Small Business and Family Enterprise Ombudsman.<\/p>\n

Mr Bruce Billson said there was “a clear and present danger” facing the\u00a0amusement and recreation\u00a0sector because of an inability for these businesses to get insurance cover.<\/p>\n

\u201cThe 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.\u201d<\/p>\n

The report, “The Show Must Go On”, explores whether a Discretionary Mutual Fund (DMF) could be a solution and discusses required legislative reform by States and Territories.<\/p>\n

It also highlights the need for DMF to be recognised and accepted as a suitable solution by councils and showground managers.<\/p>\n

Mr\u00a0Billson said he was seeking urgent feedback from all\u00a0stakeholders\u00a0by November 3 to the ideas and questions raised in the report.<\/p>\n

Submissions should be emailed to\u00a0inquiries@asbfeo.gov.au<\/a><\/strong><\/p>\n

\u201cWe are calling for submissions from those in the industry so we can further understand any issues before we release a final report to government,\u201d\u00a0Mr\u00a0Billson said.<\/p>\n

\u201cAs businesses look to re-open after lockdowns, this issue is a shattering blow\u00a0for those small and family businesses in the amusement, leisure and recreation sector\u00a0which will be\u00a0forced to stay shut because they can\u2019t get insurance.<\/p>\n

\u201cThere is a very real possibility shows won\u2019t go\u00a0on\u00a0– something has to\u00a0be done for the show to go on.\u201d<\/p>\n

The interim report found\u00a0the lack of affordable insurance was not the fault of the amusement industry but due to\u00a0a \u201chardening\u201d in the global insurance market. Very few insurers were willing to\u00a0insure\u00a0the industry, and\u00a0premiums \u2013 when\u00a0available\u00a0\u2013 had risen by\u00a0as much as 200\u00a0per cent.\u00a0<\/strong><\/p>\n

\u201cIn many instances the policy is priced such that it may as well not exist because small operators have no capacity to pay for the cover they need to continue operating,\u201d\u00a0the report says.<\/p>\n

\u201cIn the case of the amusement, leisure and recreation sector, there isn\u2019t an offering that provides full coverage.\u201d<\/p>\n

Public liability insurance coverage is a legal requirement for the operation of rides at showgrounds and fixed installations, both through contractual obligations and obligations imposed on councils and other landowners by State and Territory governments.<\/p>\n