Of Festivals and Floods

I have a picture of myself at 15 sitting on Santa’s lap. Poor Santa. Since the event in question occurred way back in the dark ages, he may or may not have been insured against the weight of my gangly teenaged frame. But nowadays Santa most likely has some sort of liability insurance in case one of his young visitors or their parents happen to come to harm at the winter wonderland in the mall.

And that’s one thing that continually amazes me about the world of insurance—how it is relevant to almost every corner of our lives. In our coverage of special events insurance, we found that not only is Santa likely to be insured now, but the local Halloween pumpkin patch that pops up year after year and the sports figures that populate our television screens are also likely to be insured by special events lines that cover everything from athlete bonuses to revelers at an outdoor street fair.

With its breadth of coverage opportunities, the niche of special events insurance casts a welcome glow in the marketplace in these less than exuberant times. Those who specialize in these types of coverages admit that although the market has tightened somewhat, like every other line, coverage is still available. As Raj Shah with Crump Insurance Brokers noted, “The market is hardening and the underwriting process is a lot more diligent but there are still markets available…Pricing has gone up, like everything else, but not to the extent that you can’t buy coverage.”

Indeed, to Tom Floerchinger, chief operating officer of SCA Promotions in Dallas, “For everybody in the whole world right now it’s a wonderful time to be in the business…Customers are very sensitive to their own level of risk and are willing to buy [coverage].”

In this issue of IJ-Texas, we also take a look at the hurdles agents often face when selling flood insurance. Although it is an absolute must-have coverage for many parts of Texas—due to the state’s tendency to be inundated by rogue tropical storms and hurricanes, as well as the flash floods that sweep through Texas fall, winter and spring—it’s also a confusing line for many consumers. Thus, they choose to go without. Melanie Ross, a market analyst for Bankers Insurance Group, examines the reasoning behind consumer objections to flood insurance and offers sure-fire selling tips to overcome those objections.

Finally, with great reluctance we say goodbye to our executive editor, Sky Barnhart, who’s moving on to tackle other challenges. The Insurance Journal team has profited from Sky’s excellent leadership skills and guiding vision for several years now. We’ll miss her, but wish Sky all the best in the world.

Topics Texas Flood