Paragliding and powered paragliding have enjoyed increased popularity and with it a growing demand among adventure seekers to fly in the sky. In response many paragliding schools and businesses have opened to provide instruction, training and ultimately a one-of-a-kind experience for individuals interested in paragliding. Yet paragliding is an inherently risky activity and most of your customers will have zero experience and are trusting you with their lives. Due to the significant risks involved, your paragliding business should have a team of highly experienced instructors, high quality equipment and follow industry safety standards. Nonetheless, despite the most vigorous risk management, accidents can and do happen. That is why a robust insurance policy is absolutely essential.
However, with the departure of Lloyds of London from the paragliding and powered paragliding insurance marketplace, the industry is faced with a new obstacle in securing coverage. The initial reaction may be to form a Risk Retention Group and self-insure but this would be an unwise decision.
First, there is a significant barrier to entry in establishing a Risk Retention Group which requires raising a large sum of initial capital to guarantee the Risk Retention Group remains financially sound even in periods of market turbulence. Next, operating a Risk Retention Group will add administrative costs from the need for new employees that have the required skillsets. Also, Risk Retention Groups tend to be small and by definition self-insured, so risk cannot be spread out and often requires reinsurance. Furthermore, a new Risk Retention Group will not have the knowledge and experience to effectively manage and resolve claims. Finally, there will inevitably be a dependency on third party service providers which vary in quality. With all these concerns taken into account, the real likelihood of a Risk Retention Group incurring high costs while producing poor results should lead to the pursuit of other options.
A superior alternative to the burden of forming and operating a Risk Retention Group for the paragliding and powered paragliding industry is to partner with Prime Insurance Company.
For 30 years, Prime Insurance Company has delivered customized insurance solutions, extraordinary claims results and risk management partnerships for paragliding businesses and professionals. Prime Insurance Company has the required industry knowledge and in-house service capabilities to consistently provide outstanding liability coverage solutions and claims handling. If you are a paragliding business or professional who cannot obtain coverage or has been cancelled, Prime Insurance Company is here waiting to help you with your insurance needs. Even if you have a claims history or are operating in a hazardous geography, these obstacles can be overcome. We will take an individual look at your operation and tailor an insurance solution to fit your unique needs. So don’t wait! Contact Prime Insurance Company today.
Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.