Don’t Burst The Bubble: Underwriting Family Fun Centers

A family fun center is like a bubble of joy. You cross the threshold with your family and friends, and you’re transported into entertainment heaven.

There’s a 1,200-foot go-kart track, a laser tag arena, a ropes course, a well-stocked game room and redemption prize store, and the crème de la crème of inflatable obstacle courses fit with a 25-foot slide. What a grand day out.

Unfortunately, bubbles are inherently vulnerable to popping. Contact with a dry surface, dry air or some sudden air turbulence, and ‘POP’ they’re gone. The same can be said for family fun centers.

One go-kart crash resulting in serious bodily injury, one broken ankle on a faulty ropes course, one claim of abuse or molestation against a worker at a kid’s laser tag party, and that bubble of joy can burst abruptly.

There’s an awful lot of competition among family fun centers, according to Travis Walker, senior underwriter at K&K Insurance, a managing general underwriter (MGU) that specializes in sports, leisure and entertainment insurance products.