K&K Enters Air Show Market

PRODUCT: Air show program

COMPANY: K&K Insurance

BEST RATING: A+ (Superior)

AVAILABILITY: Coverage is available through appointed independent agents and brokers.

FOCUS: From the crowd line back, an air show is basically a festival. From the crowd line forward, where the aerial activity takes place, it’s similar to a motorsports event—spectators sitting in the stands watching vehicles go by at high speeds.

So while insuring air shows is technically new territory for K&K, senior underwriter Warren Mead says the space feels very familiar: The company has insured tens of thousands of festivals, and has operated in the motorsports space for 65 years.

K&K used the building blocks of its festival and motorsports programs to develop its new air show program, which also includes Federal Aviation Administration (FAA) regulation. Mead notes that the agency tightly controls all elements related to air show setup, including setback distances, direction of travel, aircraft maneuvers and altitudes.

Mead says agents shouldn’t be dissuaded from writing this type of business even if it is new to them. Every town has some sort of opportunity in the special event space, whether it’s a festival, air show or other event, but the number of insurance providers is limited—giving agents a unique opportunity.

“An agent with the appropriate market can go to the event and say, ‘Look. There aren’t very many providers of this coverage out there. I have this market. Here’s the program. Here’s what we can do for you,’” Mead explains.

Mead adds that K&K provides agents with background information on the market so they can assure the customer they fully understand the class of business: “We always want to make sure that we help that agent or broker succeed in the initial step of the process, because building confidence and trust with the client obviously is extremely important.”

UNDERWRITING: Mead says FAA regulation of air shows is the foundation of K&K’s underwriting approach. The FAA divides air shows into “three levels of exposure,” Mead notes, depending on the type of aircrafts on display. At the lowest level is barnstormer, World War I aircraft, slow-moving aircraft or slow-moving stunt aircraft, where the crowd can be closer to the action. At the upper end is military jet teams, which pushes the crowd back and changes the setup and logistics of the show.

The underwriting process begins with a program application that speaks to the air show class of business. “We will then review the application, but we know that when an air show has been submitted to us for underwriting, the FAA waiver has been obtained,” Mead says. “Without that, you can’t have an air show. The FAA documentation addresses a lot of the basic and fundamental underwriting information about the aircraft and the setup of the show.”

Mead says K&K then reviews the festival portion of the air show, which includes the amenities, spectator crowd control and more. K&K also considers how the air show promoter runs the details of the show itself.

“Those details are different than what the FAA regulations cover,” he says. “The issues include how the exhibitors and performers have been contracted, making sure they’re certified and have certificates of insurance. And then you’ve got the issue of how the air boss and show promoter are handling crash or fire rescue situations and emergency access plans.”

While airports are well versed in handling emergency situations for everyday operations, air shows put unique stress on the facilities and staff. “They’ve got everything down pat should there be an accident or some situation in normal operations,” Mead says. “But when you have 20, 30, 50 or 100,000 people on the premises, that changes everything. All those details have to be reconsidered.”

MIMINUM PREMIUM: $2,500.

TARGET: Mead says K&K is open to writing all level of air shows, but ones that include a “jet date” are the highest level and the most complex.

“That’s when a promoter has secured the U.S. Air Force Thunderbirds, the U.S. Navy Blue Angels or the Canadian Forces Snowbirds,” Mead explains. “If an air show promoter is successful in securing a jet team, then that will change the entire complexity of the air show and make it much more high profile. That’s not a concern—just something we need to know.”

COVERAGE TERRITORY: All U.S. states.

CONTACT: Warren Mead, senior underwriter; K&K Insurance, 1712 Magnavox Way, Fort Wayne, IN 46804; 260-459-5921.

Katie Butler is IA editor in chief.