They cant sue me for that can they

They can’t sue me for that can they? OR Why didn’t I buy the right insurance coverage?

There is only one thing to remember today…… Rule Number One

You can’t be a little pregnant….

There are some hard fact of life you need to deal with

My assistants for insurance

The assistant you would like

But your assistants look like this

WARNING: This class can cause you to drink. . This class can cause serious mood swings…

Please sign this waiver…. WAIVER I WAIVE ALL RIGHTS OF POSSIBLE BODILY INJURY, LOSS OF MEMORY, WRONG INFORMATION, POSSIBLE SUCCESS OR FAILURE OF MY BUSINESS DUE TO INFORMATION IN THIS SEMINAR AND ANYTHING ELSE AN ATTORNEY MIGHT THINK UP AGAINST LARRY COSSIO. SIGNATURE DATE IF UNDER 18, PARENT MUST SIGN

Many people just get into the inflatable rental world to earn a few bucks

Maybe you just want to upgrade your family car

Or maybe get a faster car so you are not late to your weekday job

Maybe you want a house in the country just to get away…

Today’s Life Lessons • We will review some claims in the inflatable and equipment rental world • We will identify causes of accidents • We will identify what insurance coverage’s you should have and why • We will identify what a certificate of insurance is and why you keep getting asked for one

Let’s look at what will ruin your business…. . Infant critically injured after fall from kiddie train ride (Tuesday, March 10, 2009) - At a mall in Cutler Bay, Florida, a 12 -monthold boy suffered severe head injuries when he fell 2 -3 feet from a mechanical kiddie train. He landed on his head, then was partially run over by the train before it could be stopped. Rescue workers arrived to find the child unconscious and unable to breathe on his own. They began CPR, revived him, then transported him via helicopter to Miami Children's Hospital, where he was listed in critical condition. The Miami-Dade Police Department is investigating the accident and the ride has been shut down. UPDATE: The boy died from his injuries on March 17, 2009.

Mechanical Swing Ride Child, 8, injured in fall from swing ride (May 2, 2009) - An 8 -year-old suffered minor injuries in a fall from a mechanical swing ride at a carnival in Orangeburg, South Carolina. Investigators believe that the child was began to come out of the swing as the ride was slowing to a stop. “There was no apparent malfunction of the machinery, ” said a fair spokesman, and the child's size was not thought to be a contributing factor in the accident. The ride passed a state inspection two weeks ago.

Inflatable slide…. . Inflatable slide tears apart, injuring teen (May 25, 2009) - In Lumberton, Texas, a 14 -year-old girl was injured after falling through an inflatable slide that had ripped open from top to bottom. The girl fell 26 feet to the ground and suffered a fractured arm, a bruised hip bone, and a concussion.

Inflatable Teen paralyzed after flip on inflatable ride (June 21, 2009) - In Denison, Texas, a 17 -yearold boy was left partially paralyzed when he fell on his neck after a back flip while playing on an inflatable ride.

Inflatable ride went flying…. (June 27, 2009) — In Middletown, Ohio, an inflatable ride went flying 40 feet into the air with an 11 -year-old boy inside, who escaped serious injury by hanging on until bystanders stabbed the ride with knives, deflating it. Several other children suffered minor injuries when they were bumped or scraped by the ride as it flipped several times during its flight.

Inflatable water slide…. Safety concerns shut down inflatable water slide (August 6, 2012) - A 60 -foot-tall inflatable water slide in North Myrtle Beach, South Carolina was shut down after an inspection revealed that the ride may have developed dry rot in one or more of its seams.

Another inflatable goes flying… Another inflatable goes flying; girl falls onto roof (February 20, 2011) - In Marana, Arizona, two girls were tossed out of an inflatable jumping castle when a gust of wind carried it at least 100 feet through the air. One girl was tossed out onto the ground and suffered only minor injuries; the other was ejected onto the roof of a neighbor's house and suffered serious injuries, including head injuries.

Another inflatable topples in wind; 3 children injured (April 21, 2011) - At a carnival in New Square, New York, three children were injured when a gust of wind toppled an inflatable castle.

Another inflatable slide collapses; 5 injured (April 29, 2011) - At an elementary school in Clovis, California, five children were injured when a wind gust toppled an inflatable slide.

Another inflatable slide collapses… Another inflatable slide collapses; 4 injured (May 7, 2011) - At a festival in Encino, California, four children suffered minor injuries when an inflatable slide collapsed. According to the Los Angeles Fire Department, too many children were on the slide, and there was no adult supervision at the time of the accident.

Three inflatables blow away…. Three inflatables blow away with children inside; 17 people injured (June 4, 2011) - In Oceanside, New York, three inflatable castles with children inside them were blown through the air in a gust of wind. Seventeen people were injured, some of whom were struck by the inflatables once they hit the ground and started rolling. One person was hospitalized with critical injuries; the others were treated at hospitals for minor injuries. CBS News reported that the inflatables were installed by Affordable Inflatable Entertainment of Oceanside, and the company owner said that all of the inflatables were anchored properly.

Another inflatable slide topples… Another inflatable slide topples; children injured (May 27, 2011) - Eight children were sent to a hospital after an inflatable slide toppled over at an elementary school in Lyons, Illinois. Some of the children fell as high as 15 feet and landed on asphalt. The victims' injuries were not life-threatening.

Another inflatable goes flying… Another inflatable goes flying; 6 injured (May 13, 2011) - In Tucson, Arizona, a whirlwind tossed an inflatable castle through the air and left it wrapped around a light pole. Six children were struck by parts of the attraction and suffered minor injuries.

Landing in tree across the street

Another inflatable slide collapses… Another inflatable slide collapses; 5 injured (April 29, 2011) - At an elementary school in Clovis, California, five children were injured when a wind gust toppled an inflatable slide.

Another bounce house blows away… Another bounce house blows away; 2 children hospitalized (April 2, 2011) - In Tucson, Arizona, 2 children suffered serious injuries after a bounce house was blown into the air by a sudden gust of wind while they were inside it. According to Tucson Police, the inflatable blew across three lanes of traffic before it landed on the side of a road. The children were hospitalized; both were expected to make a full recovery.

Deadly Tent Collapse Kills One �An Illinois man was killed and about 100 people were hurt when high winds caused a deadly tent collapse outside a St. Louis sports bar, the Associated Press reports. 4/30/12 �The tent collapse happened as a fast-moving storm rolled in Saturday, after a St. Louis Cardinals game at nearby Busch Stadium. Winds exceeded 70 mph, a spokesman for St. Louis' mayor said. �The deadly St. Louis tent collapse occurred when a sudden gust of wind shattered the aluminum poles holding up the tent. Debris flew through the air as the tent was blown onto nearby railroad tracks. �About 200 people were underneath the tent when it collapsed. About 100 victims were treated for injuries at the scene, and 17 were taken to hospitals, the AP reports.

5 -year-old boy was killed at the 2008 Air Show � "Our investigation has concluded that this was a preventable tragedy caused by negligent conduct, " the Millers' attorney told the Huntsville Times. � Negligent Setup, Lack of Safety Inspection, Code Violations Blamed for Child's Death � The lawsuit outlines several areas where the defendants' alleged negligence caused the fatal accident: � Improper tent setup: According to the tent manufacturer's instructions, the tents needed to be pitched and staked individually, then secured with four pegs at the corners. Instead, the lawsuit alleges, the group of tents was erected in a line, with pegs securing one side, water barrels holding down the other, and no securement at the sides. To save money, prisoner labor rather than trained installers was brought in to pitch the tents. � Properly anchored, the tents should have been able to withstand winds of up to 60 mph, according to All Needz. The winds on the Sunday that Josiah died were recorded at 48 mph.

5 -year-old boy was killed at the 2008 Air Show �The family of Josiah Miller, a 5 -year-old boy who was killed at the 2008 Air Show at the Huntsville International Airport, has filed a wrongful death lawsuit against the organizers of the air show, the Huntsville-Madison County Airport Authority and All Needz Rental. They claim that those groups share responsibility for the accident that led to Josiah's death. �According to the family's complaint, Josiah and Jason Miller, his father, took shelter behind one of the tents during a thunderstorm. Several of the tents became dislodged because they were inadequately fastened down, and a large air conditioner attached to one of the tents fell on Josiah, causing fatal injuries.

So you think it won’t happen to you? Huh?

ARA Reports 1 out of 10 �Incredibly, one out of every 10 injury claims reported to ARA Insurance Services results from a chair collapse. �Most collapses involve metal folding chairs with plastic seats and backs. Some accidents result from old, rusty chairs, but even newer chairs can fail. Often, the rivets are weak where the seat is connected to the frame or the rivets rip through the plastic seat. (reprinted from ARA)

Table and Chairs Claims �A guest sat down on a rented chair at a large event and the chair broke. The guest alleges he tore his rotator cuff in the fall and had to have surgery to repair the injury. The rental store was not informed of the loss when the chairs were returned and disposed of the broken chair after they inspected it. �Chairs were rented for a meeting. A guest sat down on the chair and the front leg snapped and broke off. The guest fell forward onto her knees and tried to catch herself with her hands. The guest allegedshe suffered from back pain and headaches after the fall. The chair leg was reported to be rusted. The rental store had recently painted all of the chairs prior to this event and did notice the rusted leg.

Table and Chairs Claims �A section of a rented “tiki” bar and table was blown over by strong winds and struck a guest at a party. The bar was supposed to be bolted together, but it came from the manufacturer without nuts attached to the bolts — they were simply screwed into place. The rental store did not discover the defect until after the accident happened. �Tables that had been rented for an event were stacked up against a wall. A mother was letting her child crawl around on top of the stacked tables when the tables fell onto the mother. The mother sustained minor injuries. It was never determined who stacked the tables. A settlement at 50 percent was reached due to the mother contributing to her own injury.

Table and Chairs Claims �A customer had the rental store deliver some tables and chairs to his home for an upcoming party. Some of the renter’s furniture had been moved out of the rooms in advance of the delivery, but the rental store employees had to move several large pieces of furniture to make room when they arrived. �The rental store employees set up the tables and chairs as directed and then the renter alleged the employees had scratched his bamboo floors and wanted the floors either repaired or totally refinished.

So maybe you are getting pissed off and want to fight someone? ? ?

Now its getting serious…

So you want to know why we are so worried?

Attorneys, gotta have them…

Attorneys smile

Hmmm…

See any similarities

Hmmm…

See any similarities

Lawsuit and the words “trust me”

The attorneys say that it is a fair balanced judicial system…

The reality is the scales are tipped against the business owner

When you are thinking you are having a bad day…

Remember there are sharks in the water everyday!

Consider today’s class your shark net…

I HATE THE INSURANCE GUY!

What drives the price of insurance? • • • Availability of Markets Volume of Premium Claims Frequency Severity of Claims

Causes of Accidents Lack of Trained Supervision Overloaded Inflatables Not Tethered Properly Sudden Deflation Manufacturing Flaws

Lack of Trained Supervision This is without doubt the number one cause of injuries. Being "trained" to supervise an inflatable ride in operation often requires nothing more than reading the manufacturer's warnings that are posted on the inflatable itself (note that this is not sufficient training for setting up and taking down an inflatable). Many of them do -- but evidence of thousands of emergency room visits each year from unsupervised inflatables proves that not enough companies supervise events and follow the posted rules.

Overloaded Inflatables The most serious inflatable-related injuries tend to come from the larger inflatable slides, and in almost every case the inflatable was overloaded with more than the manufacturer's maximum occupants. Just look at many of the slide-related headlines, they often read something like "9 Injured When Inflatable Slide Collapses. " There are no inflatable slides that allow nine occupants at once! Reading through the actual news story almost always verifies that there were far too many people on the inflatable.

Not Tethered Properly The most shocking and terribly news stories about inflatables are when bouncers full of children are actually picked up in a gust of wind and sent sailing through the air, or even out to sea. You can see this hazard in action in several videos, one in which five bouncers from a car dealership go sailing over and onto a freeway. In addition to the very serious but rare danger of airborne bouncers, lack of tethering is one of the main causes of inflatable slide injuries (usually combined with overloading).

Sudden Deflation Rapid deflation of an inflatable is almost always caused by some kind of power failure to the blower. Inflatables are designed to retain their inflation even with numerous small punctures and tears. But if a circuit blows, or someone trips over a power cord, or turns off the blower as a prank the inflatable will deflate relatively rapidly. This deflation leads to great instability of the inflatable. Deflation is one of the common causes of slide "collapse. " Even if a large slide is properly tethered, partial deflation cause it to fall over, spilling the occupants.

Manufacturing Flaws In the last 8 years the manufacturers have improved the quality of the inflatables design. In order to bring into some states it has to pass approval from NJ, which has raised the bar. Some minor injuries were indirectly caused by bouncers without finger-safe netting, or without steps leading to the entrance. Make sure that you are purchasing quality and from a manufacturer that can show you that they have product liability insurance in place.

Study design: Retrospective case series �The records of all children seen in the Level I trauma center and subsequent fracture clinic for an injury from an inflatable bouncer from October 2002 to March 2007 were reviewed. Parents were contacted by telephone survey to provide information about activity, number of children in the bouncer, presence of adult supervision, and age difference of the children who were in the device at the time the injury occurred.

Facts on injuries �During the review period, a total of 4, 367 children were seen in the emergency room for trauma, � 49 (1. 1%) sustaining an injury while in an inflatable bouncer. �The majority of inflatable bouncer-injured children were male (74%) and the mean age was 7. 8 (range 1. 5– 15) years; 35% of the patients were between seven and nine years old. �Injuries occurred in either the upper (66%) or lower extremity (34%).

Facts on injuries �The most commonly injured area was the elbow with supracondylar humerus fracture being the most common single injury (22%; 11/49). � Most injuries were minor fractures with only one open fracture and only 14% requiring manipulation of a deformity. �A total of 21 families (43%) could be reached by telephone. Among these families, all injuries occurred at home on a rented device.

Facts on injuries �Adult supervision was absent in 9/21 (43%), �The mean number of children in the device at the time of the injury was 5. 4 (range 3– 11), and 11/21 (52%) had children of different ages jumping inside. �The two most common mechanisms of injury were collision between two children (67%, 14/21) and falling out of the bouncer (19%, 4/21)

Mechanical Bull injuries… Abstract We reviewed the cases of 30 patients presenting to the emergency department over a four-month period with a total of 31 injuries suffered while riding a mechanical bull. The majority of injuries were sprains and contusions. The most severe injuries included seven fractures, one dislocation, and one fracture-dislocation. Three patients required hospitalization, including one with a compression fracture of C 7. The majority (74%) of injuries involved the upper extremities. http: //www. ncbi. nlm. nih. gov/pubmed/7316262

Is the bar open yet?

What insurance do you need to protect your business?

Glad you asked! Just a few here… �General Liability (tax deductible) �Professional Liability (tax deductible) �Inland Marine (tax deductible) �Commercial Auto (tax deductible) �Workers Compensation (tax deductible) �EPLI �Health Insurance (tax deductible) �Life Insurance (tax deductible if death benefit paid to company) �Disability Insurance

General Liability

What The Heck Is General Liability? �Coverage is provided for claims of bodily injury or property damage liability on your premises or at your customer's location. �Important Note: Remember that some policies may exclude Errors and Omissions type claims related to the delivery of your professional services. �You may need excess coverage or umbrella coverage

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

Professional Liability

What The Heck Is Professional Liability? �Professional Liability Insurance or Errors & Omissions insurance protects you against loss from a claim of alleged negligent acts, errors or omissions in the performance of your professional services. This might include claims of nonperformance, fraud or negligent oversell.

Professional Liability �Professionals are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to perform the services for which they were hired, according to the standards of conduct in their profession.

Failure to Provide Services �If they fail to use the degree of skill expected of them, they can be held responsible in a court of law for any harm they cause to another person or business. When liability is limited to acts of negligence, professional liability insurance may be called "errors and omissions".

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

Abuse and Molestation �Do you deal with children? �Do you have attendants with your equipment? �Do you have an indoor center? �Do you have video cameras on all angles? �Do you have a written procedures manual? �Do you have training for sensitive issues?

Why Abuse and Molestation Coverage is Important Today!

Training is key to minimizing exposure!

Do I really need this coverage? �What is rule number one?

Hmmm…. Molestation �It is a claim you can’t defend �It is an open checkbook for your attorney �It will probably ruin your reputation personally and as a business �It could financially bankrupt you defending your innocence �Defense costs start at $30, 000 -100, 000

The are always around lurking…

Property Coverage Or Inland Marine if mobile in nature

Property or Inland Marine Coverage �This provides coverage for your business property for fire, theft, vandalism on premises, or if Inland Marine while off premises �Covers computers, office equipment, inventory etc. �This does NOT provide coverage for equipment of others rented or borrowed �If you have a loan on it, it must have this coverage �Don’t forget Business Income!!!

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

Commercial Auto

You need to think about this…

Commercial Auto �This coverage provides liability, medical, uninsured motorist, underinsured motorist, collision, comprehensive, rental car reimbursement and towing. Trailers also. �Your personal auto policy has a “business use” exclusion �Make sure that you have non-owned/hired auto on the commercial auto policy or general liability policy

Commercial Auto �Make sure your agent gives you something in writing that states your personal auto coverage protects you while using your car in your business �If you use your vehicle in the course of business, you need to have a commercial auto policy. If you do any delivery, if you are picking up customers etc. If you just use your vehicle to go to do proposals to drive to site, you can get a business endorsement on most personal auto policies that will cover you.

Non-owned Auto/ Hired Car �Hired auto coverage protects your business if you or an employee rents a vehicle in the company name and an accident occurs. Non-owned coverage protects the company if an employee has an accident in his or her own vehicle while on company business and the employee’s personal insurance is inadequate to cover the claim, resulting in a suit against your company �Could be included on General Liability

Make sure you add your trailers

Don’t overload

This is not considered tied down…

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

Workers Compensation

Workers Compensation �This coverage is for employees �Does not cover YOU �Mandatory in most states �Does not cover sub contractors �World’s greatest saying, they are not employees…….

Sure they aren’t…. IRS Agents laughing at you…. .

Work Comp Coverages �This coverage is used to comply with the Workers Compensation Coverage required by your state law. Under this requirement, an employee can be compensated if he or she is injured while working for you, regardless of your negligence as an employer.

Covered, not Covered…

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

EPLI Employers Practices Liability Insurance

EPLI Coverage �Employment Practices Liability Insurance �EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. �The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits.

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

Example of harassment

Touching can be turned around

It’s not always the guy doing it…

You’re Fired!

Types of EPLI Claims Defense Cost From Sexual harassment Discrimination Failure to employ or promote Wrongful termination Breach of employment contract

Do I really need this coverage? �What is rule number one?

You can’t be a little bit pregnant! �Either you are covered or you are not!

What to do in case of an accident Cry

What to do in case of an incident If there is an injury involving an entertainment device do the following: �Collect inspect and preserve the item �Preserve product in current condition �Collect statements from spectators and employees �Take pictures �Collect field records �Collect product records �Store in neutral site �Notify insurer immediately �If necessary retain counsel �Consider CPSC rules

How long should you retain documents? Accident reports and claims= 7 years Waiver= 7 years Accident settled= 4 years Accident not settled= forever Contracts= 7 years Employee= 3 years

These pictures represent possible claims…

While it all starts out as fun…

Ends up with someone hurt

Because of something going wrong

You can buy the correct insurance policy, or…. .

Or you can write the check for damages and attorney costs…

What is a certificate of insurance? • Evidence of insurance coverage's and limits • Can show liability, umbrella, property, commercial auto, and work comp • It verifies that a certain insurance policy is in effect for stated amounts and coverage and names those insured. Let’s look at what you need to see on a certificate of insurance

Certificate of Insurance Notes • You need to be named as additional insured with all subcontractors • Certificate holder does you NO GOOD • Always ask for the endorsement • Always ask to have certificate sent from agent

Tips to minimize your exposure �Have trained employees �Follow safety guidelines EVERY time �Have correct signage �Have correct wording in your rental agreement and contract �Do not copy someone else’s waiver and contract from the internet �Protect stakes and generators with cones

Directions on what to do during an event • Good supervision is essential for making sure all inflatable users stay safe. These tips will help you ensure that the event is as much fun as you had planned. • A responsible adult must supervise the inflatable amusement rides at all times. • Before being allowed to enter an inflatable unit, people should remove shoes, jewelry, eyeglasses, hair clips, and other sharp objects that may injure others. • Prohibit food, drink or gum in the unit. • Don’t allow people to perform flips or engage in rough play inside a bounce house. • Don’t let children sit or lie down while others are bouncing around them. • Remove children from a bounce house once they tire. • If an inflatable unit deflates, remove occupants immediately. • If winds start affecting the structure, or if you see rain, lightning, or any other unsafe condition, get everyone out of the inflatable, then turn off the blower motor until conditions improve.

Items that have more claims…

Set up on sidewalk…

Who do you call?

Forms of Protection

All blue boxes would Inflatable Rental Business Owner represent all the Owner entities that would Business that City, State, the event was be named in a County for lawsuit by an injured party Manufacturer Of Unit Of Any Accessories Tents, Generators, Entertainment Sponsors So if there is a claim for a covered activity during setup, during the event, or take down, the policies would provide defense coverage for the additional insured’s