This was published 8 months ago
The only thing jumping at the Lorne trampolines is insurance costs
By Cara Waters and Millie Muroi
Bouncing on the trampolines on the Lorne foreshore was a pastime for generations of children until they were abruptly shut down in 2020 – and the cost of insurance means they can’t reopen this summer.
Co-owner Kathy Landos said the trampolines, which are located on Crown land, are no closer to being back in use.
Ed Callan works at the Lorne trampolines which will remain unused this summer. Credit: Joe Armao
“Anything on public land needs a minimum insurance level of $20 million to $30 million,” she said. “In a private capacity I could get that, but not for my business on public land.”
Landos said it was hard seeing children’s disappointed faces when they found out the trampolines were still closed.
“They are devastated,” she said. “You see their fingers through the wire fence. It is really sad.”
Landos said quotes from insurers for underwriting the risk of up to $30 million were close to $500,000 a year – even though there had never been a claim against the Lorne trampolines.
“That is where we are at the moment, and we have not been [able] to move the needle,” she said. “It is not just us, it is everyone on public land, you will see a lot of the trampoline pillows are closing down as well in caravan parks.”
Landos said big trampoline parks like Bounce operated with a different model.
She said Lorne trampolines continued to work with the Great Ocean Road Coast and Parks Authority that manages the land to look for a solution.
“If not, at some point we are going to have to repurpose the activity in some way,” she said. “How long do you give it?”
Children bounce on the Lorne trampolines when they were still open in 2020.
The authority’s chief executive, Jodie Sizer, said the Lorne trampolines had been a source of joy and excitement for years.
“We’re keenly aware of the challenges currently faced by the operators and we’ve been actively involved in supporting their efforts to source insurance,” she said. “We’ve left no stone unturned to investigate viable options, including our own in-house insurance broker network.”
Sizer said trampoline businesses on public land nationwide were facing similar challenges.
“We continue to support the operators to explore potential options for the future,” she said.
A spokeswoman for the state government said the Victorian Managed Insurance Authority had tried to find public liability coverage with an affordable premium for the Lorne trampolines.
“To date, there is not a viable insurance option for the site as it currently exists,” she said.
Insurance Council of Australia said insurance risks for outdoor facilities were under pressure because of global factors and because they had been a source of public liability claims.
“Insurance globally is currently in a ‘hard’ market, which means capital is scarce, reinsurance is more difficult to obtain, and risk appetites are low, all of which can impact the cost of premiums locally, particularly those sectors that represent a higher insurance risk,” it said in a statement.
“Businesses that operate outdoor activities like trampolines and jumping pillows are particularly affected by this as these facilities present higher risk and have been a source of public liability claims.
“The ICA has been engaging with the outdoor leisure sector to develop guidance and assistance for operators on practical measures they can implement to be better placed to obtain insurance going forward.”
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