21/01/2020
Category: general

Spreading a substance like talcum powder or tea leaves on the dance floor is a tempting fix for a sticky surface. But a single instance of a dancer or employee suffering serious injuries and suing for damages caused by someone doing this would impact the entire dance community.

That would be especially so if the claim was large, perhaps in the millions of dollars. But even a small claim could result in a strong response from insurance companies.

In a worst case scenario, insurers could dump rock 'n roll dancers entirely, or at least greatly increase premiums in anticipation of further trouble. Publicans and venue operators would then be advised that their insurance no longer covers anything relating to structured dancing.

So, venues would give rock 'n roll bands the boot. Dance clubs that hire halls could also find it hard to obtain insurance for their participants, especially at the preferred rates enjoyed by not-for-profit organisations.

This may seem like exaggeration, but it's not. Insurance companies work on worst-case scenarios because those are what lawyers take to court. When a claim arises that wasn't factored into their risk estimations, they are given to knee-jerk reactions. Furthermore, insurers consider alcohol a bogey and when added to energetic activity, the dangers increase. Don't tempt them.

I well recall the panic era of the 1990s and early 2000s in the wake of litigation craziness that impacted sporting clubs, groups and equipment manufacturers globally. A few large lawsuits resulted in a rush to slap warnings and disclaimers on anything and everything, even to the point of 'idiot-proofing'.

At that point, premiums for public liability insurance increased sharply. A lawyers' picnic ensued with courts awarding huge sums. The Howard government introduced laws to curb claims, but that's not a reason to drop diligence.

It should also be noted that while we buy cover from insurance retailers, large risks are offloaded onto the international reinsurance market. It's those insurers who ultimately control premiums and decide how particular risks will be quantified.

Best to put up with a sticky floor.