Ancillary activities, such as food and alcohol service, represent other exposures. Special events need to be noted in the application and submitted to underwriting. One of Allied Specialty s clients is a park that hosts a corporate picnic for 12,000 people each year. Air shows, fireworks and haunted hayrides at Halloween also are exposures of interest to insurers. Extra exposures do not necessarily mean higher premium, but they need to be considered, Smith said.
Location also adds to the underwriting mix.
In Brooklyn, you re subject to having an attorney call you the next day. Rates per Ride Once a thorough description of the park rides, procedures, employees, grounds, attitudes, previous claims is gathered, the underwriting analysis begins. American Specialty uses acreage, admissions and rides as the three primary components for developing pricing. From those initial rates, American Specialty develops a gross base rate that is modified up or down depending upon the other information on the application. American Specialty s clients often use self-insured retentions, Harris said.