Intelligenz provides Leisure Management Software for managing all your Program Registrations, Facility Bookings, Membership Sales and POS Transactions; including detailed Reporting, automated…read more
Insurance crisis set to force closures of Australian attractions and adventure tourism businesses
Hidden by the challenges presented by closures and ongoing issues relating to the COVID-19, the looming matter of operators in many sectors of the industry securing and renewing their public liability insurance is coming to a head, with Australasian Leisure Management aware that a number of high profile industry locations are facing closure in the coming weeks.
Unable to secure insurance cover beyond 31st December 2020, operators who have faced COVID-19 related closures this year now face having to cease operations as of 1st January.
Phil Durkin, Director of Australia's Ultimate Attractions and a Past President and current board member of the Australian Amusement, Leisure and Recreation Association (AALARA), explains “most insurers and underwriters are not writing or renewing public liability insurance policies for rides and attractions. This appears to be from issues and influence from around the world and we are assured that it is not an Australian situation only.
“Our research on claims history validates this and indicates our claims rate here in Australia is very low by world standards. Australia has a very good and regimented safety regime we believe is of the highest standard.”
Australasian Leisure Management has previously reported that adventure tourism operators are also impacted by this issue.
Commenting on how the crisis has developed, Durkin (pictured below) advises “for most of this year there has been a serious situation developing with public liability here in Australia only it has been masked by the COVID-19 restrictions all year. As restrictions are lifted and normal life begins to return it will be noticeable that many rides and venues are either unable to open or remain open through the busy summer period.
“The irony is inescapable that what has been the toughest and difficult year in memory and when finally, we are able to operate we are unable to because of the insurance issue.
“To see millions of dollars of machinery parked up is possibly one of the most heartbreaking things as summer rolls on by.”
Durkin goes on to note “while we are aware of the growing list of operators whose insurance has not been renewed or will expire shortly, we do not want to publicly name them or cause any more angst or grief.
“While Governments want life to get back to normal, the growing list of business’s affected will be forced to shut down and lay off all staff. The added strain to the business that have invested heavily in new machinery and attractions for this summer may well prove to be unsurvivable.”
Representing AALARA, Durkin has teamed up with Michael Alexander, Managing Director at HIB Insurance Brokers Pty Ltd, to work over recent months on a solution to this crisis.
As a result, Durkin notes “we are getting very close to finalising a Discretionary Mutual Fund for the industry.”
In doing so, AALARA, Durkin and Alexander are battling through the various hurdles, with Durkin adding “we are thinking of a small form of Government Assistance to help get over the initial hump for the start, but we are confident that the scheme will be self-supporting and standalone thereafter.”
Phil Durkin can be contacted via Australasian Leisure Management Publisher, Nigel Benton on email@example.com
Readers who wish to share their experiences with insurance, which will be handled in confidence, can also contact Nigel Benton.
Main image used for illustrative purposes only.
18th November 2020 - AALARA takes action as attractions operators face public liability issues
16th November 2020 - Industry operators impacted by rising insurance premiums
22nd October 2020 - Festival promoters call for Federal Government insurance scheme
12th June 2020 - Insurance refusals impacting adventure tourism operators
29th April 2020 - AALARA updates members on attractions sector challenges
15th September 2018 - Commercial trampoline centre operators struggle to secure insurance
26th June 2015 - Leisureinsure Australia not accepting new business or renewals
30th December 2014 - Queensland entrepreneur launches new adventure tourism insurance company
28th May 2014 - AudienceView clients to offer ticket insurance to customers
4th May 2011 - Amusement Ride Static and Transit Insurance
10th March 2010 - Sportscover launches sport and leisure travel insurance
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
Click here to view our subscription options.
The Complete Guide to Leisure Industry Products & Services.
Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…read more
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. Click here to view the VIVATICKET Pty Ltd listing. 19th July 2018 - ENTA…read more
Anti Wave International is the original suppliers of top performance swim, aquatic sports, leisure and pool programming equipment. Founded in 1971, Anti Wave International is proud of its…read more
Summit Fitness Equipment is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/read more
Hydrocare Pool Services Pty Ltd offer 30 years of experience in aquatic industry features, products and water treatment. Hydrocare Pools has undertaken water treatment for aquatic centres and…read more
Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…read more
Known as Hydrilla since September 2020 - see www.ausleisure.com.au/suppliers/hydrilla-pty-ltdread more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!