Coney Island Cyclone Closed After Mid-Ride Stop, Repairs Underway

The iconic Coney Island Cyclone, a 97-year-old wooden roller coaster at Luna Park in Brooklyn, NY, was abruptly taken out of service on August 22 after coming to a halt during its ascent due to a damaged chain sprocket. Ride operators quickly stopped the ride, and all passengers were safely evacuated without injury. The New York City Department of Buildings inspected the scene the following day and issued violations to Luna Park for the damaged equipment and for not promptly reporting the incident.

From an insurance claims perspective, the situation holds significant implications. The damaged chain sprocket, an essential component of the Cyclone’s operating system, could lead to a property damage claim. Depending on Luna Park’s insurance policy, the park may seek coverage to offset the costs associated with the necessary repairs.

In addition to property damage, liability concerns also come into play. Although no injuries were reported, the potential for passenger injury during such incidents typically necessitates notification to the insurer. Liability coverage is crucial for amusement parks, given the inherent risks associated with ride malfunctions. If any claims were to arise from this incident, Luna Park’s insurance would need to cover legal fees, potential settlements, or judgments.

Moreover, the indefinite closure of the Cyclone could result in significant revenue losses for Luna Park, especially if the ride remains closed during peak operating periods. Business interruption insurance could be instrumental in mitigating these losses. If Luna Park holds a policy that covers such interruptions, they may file a claim to recover lost income during the repair and inspection period.

Luna Park has stated that the Cyclone will only reopen after the necessary repairs are completed and the ride passes a thorough inspection. The park emphasized its commitment to safety, noting that maintenance and testing of the ride are conducted daily. As the repair process continues, the park’s management will likely work closely with their insurance providers to navigate the financial impacts of this incident, ensuring the iconic Cyclone is restored and ready for riders once again.