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Last Word: Soaring From New Heights

Risk management and insurance are critical elements in zip line operations.
  • Lori Chordas
  • April 2015
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Today, a growing number of zip line and canopy tours across the globe propel participants through areas such as rainforests in Costa Rica, the Angkor Archaelogical Park in Cambodia, Colorado's Alkali Canyon and the San Diego Zoo Safari Park.

Zip lines and aerial adventure parks also have become a big part of ropes/challenge courses that provide recreational activities through team-building and problem-solving. Today, there are more than 150 such courses in the United States, according to the Association for Challenge Course Technology.

Critical elements of any zip line operation include insurance and risk management. General liability insurance is the "most important coverage for operators from the standpoint of covering their assets in the event a third party sustains an injury," said Cameron S. Allen, a broker at Veracity Insurance Solutions, one of the largest brokers insuring zip lines, canopy tours and rope courses in the United States.

Workers' compensation insurance is another coverage for zip line operators. In 2014, an employee working on a zip line stretching 55 feet above the walkways of Mall of America's Nickelodeon Universe indoor amusement park was injured by a piece of equipment on one of the platforms.

Veracity also offers other coverages, such as property insurance, accident medical and excess/umbrella for operators, course builders and manufacturers, Allen noted.

"This is a relatively young industry; only about six or seven years old," he said. However, a number of claims have arisen during that time. "The biggest exposure we see is for actual participants who were not, perhaps, paying attention, following directions or were hazards themselves. They may have gone through a safety orientation about how to participate on the zip line tour but don't follow the rules. There are also accidents where someone may hit their legs on a platform because it's not designed properly or the person exceeds weight requirements. In addition, we see some claims resulting from user and/or operator error."

Along with necessary coverages, Allen suggests operators develop a comprehensive risk management plan. "The biggest thing is making sure a course is operating within the specs of the manufacturer. If you have a weight limit, don't exceed that limit.

"Also, courses should implement daily site inspections to test the course before guests use it," Allen added. "Make sure you and your participants are aware of the environment. Tell participants if a platform is slick so they are aware of the conditions."

Organizations such as the Professional Ropes Course Association and ACCT develop industry standards for zip line tours, aerial adventure parks, canopy tours and challenge courses. In Europe, the European Ropes Course Association regulates zip lines and accredits courses for safety.

In addition, several governments, such as in Australia and Germany, along with some U.S. states, regulate courses. Colorado, Michigan and Pennsylvania are among several states that follow ASTM F24 standards, which guide the design, manufacturing, testing, operations, inspection and regulating of amusement rides and devices, including zip lines, ropes courses, challenge courses, aerial trekking courses and canopy tours.

Some of the standard safety regulations, for example, include requirements that participants wear a safety harness and be in "good physical condition." Also, many weight limits prohibit riders weighing less than 70 pounds or more than 250 pounds.

"We're seeing more professionals wanting to get into this industry," said Allen. "The zip line industry is evolving and growing at a positive pace."

By Lori Chordas, senior associate editor, Best's Review: Lori.Chordas@ambest.com



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