In today’s ever-changing $22 billion Amusement industry landscape, new and diverse types of attractions are rapidly gaining popularity across the U.S. From trampoline parks, amusement parks and adventure parks to family entertainment centers (FECs), there are more choices than ever for family fun and entertainment. But with each of these operations come a special set of inherent risks that must be taken seriously and properly managed to ensure that guests are safe—and the fun keeps rolling.
Three Key Areas of Focus
While there are a number of risk management tools specific to each unique type of operation, there are three foundational areas of focus that, when properly addressed, significantly reduce overall operational risk and exposure. We refer to these as the “Three-Legged Stool of Risk Management,” as each of these “legs” supports the other to create a strong foundation.
Let’s take a closer look at these three areas: signage, waivers and video surveillance, and dive into detail on each.
1. Signage
Signage is a key area of focus for Amusement operations, as it is a common area of exposure. There are a variety of different signs depending on the size and type of facility, each with its own important role:
- Facility/building/park map – “Where can we find the bathrooms and exits?”
- Instructional or informational – “What time do you close?”
- Educational – “Who owns the facility, and what year did it open?”
- Directions – “Where does the line start?”
- Warning or safety – “How tall do you need to be for this ride?”
Clear, effective signage enhances the guest experience by providing key information in a visible, easy-to-understand format. Most importantly, however, signage is an essential tool in defending the park against personal injury claims. Signage is essential in supporting the operator’s responsibly to sufficiently inform guests about risks of their location and its attractions. Specifically, owners have an obligation to provide all relevant information on the potential risks associated with an attraction, as well as rules that include age, height, weight and restrictions involving certain types of medical conditions.
Other considerations when it comes to signage:
 | Signs need to speak the right language. Parks should be aware if they need to incorporate different languages into their signs and ensure there are ways to communicate with guests who do not speak English. |
 | Location and positioning are key. Signs with both rules and warnings need to be present in the park, well placed and clearly visible. A sign should be at the entrance of each attraction so it can’t be missed. It should have contrast with surroundings and in a position to be the most visible. An effective sign should clearly list the rules and warn of all potential hazards. |
 | Signs need to be reinforced by staff direction. To reinforce the signs, staff should be instructing guests on how to use equipment, and should intervene when guests are not complying with posted rules and regulations. |
2. Waivers
The second leg of the stool is the facility’s waiver system. Generally speaking, for a waiver (also known as a liability release or “exculpatory contract”) to be enforceable:
- It must be clearly worded and unambiguous in its intended purpose to release the operator from all legal liability—even for negligence.
- All important verbiage must be prominently located on the waiver (i.e., not fine print “legal-ese” buried at the bottom of the document).
- The waiver must be signed by the participating guest. Each adult guest must sign a waiver, and the responsible adult must sign a separate waiver for each child. (Note: Courts across the U.S. are split as to whether these so-called “parental” liability waivers are enforceable, and this remains a state-by-state gray area).
Having a signed waiver for every incident is important when defending claims. Even in states where waivers are not as favorable from a legal standpoint, the waiver can still be an effective deterrent for an injured party to pursue a claim. With the potential for the statute of limitations extending for a longer period of time with young minors, waivers need to be preserved until the statute of limitations runs out. For this reason, it’s a good idea to keep them electronically to ensure they are readily accessible and easily retrieved.
A waiver should be reviewed by an attorney to make sure it encompasses all key points and addresses all attractions in the park. In addition, each state may have specific wording that should be incorporated into the waiver to provide the best defense.
Additionally, waivers should be reviewed periodically to ensure they are up-to-date and all necessary changes are incorporated. If guests have signed a waiver, they should sign a new waiver every time there is a change to the waiver.
3. Video Surveillance
The final—and arguably most important leg of the three—is a good surveillance system. If there is proper signage that accurately presents the rules and hazards, a guest has signed a waiver and there is video footage of the entire incident, it provides a solid defense to any claim that is received.
Parks should seek to implement a network of video surveillance cameras to monitor facilities, parking areas, exhibits, rides, and other important areas. Video cameras support the staff’s ability to remotely observe park or facility areas, allowing them to monitor live video feeds in real-time from a central control area. They also allow staff to review recorded video for post-event investigation if there is an incident.
Clearly, there’s not a “one size fits all” solution when it comes to the right video surveillance system for a park or facility. Based on the square footage and number of attractions, the number of cameras necessary to provide adequate coverage can vary widely. In addition, the quality of cameras and video and storage are also important factors to consider.
The ultimate goal of any video surveillance system is to ensure that each attraction has sufficient coverage, and any video can be retrieved at the time of incident (or reviewed) later if it wasn’t pulled right away. Bottom line—the video should be clear enough to see the important details of the incident to verify the event and the people involved.
Video storage should be able to retrieve a minimum of six months of video when needed. The length of storage is important on those occasions when an injured party does not come forward right away, if there are problems pulling the video at the time of incident, or when dealing with a fraudulent claim.
Summary
There are so many important things an operator can do to protect oneself from claims, but having signs, waiver and video surveillance is a solid foundation for any Risk Management program on which to build. If you have adequately warned guests of potential risk, given appropriate instruction, had them assume the risk by signing a waiver, and have an incident on video, then your ability to defend a claim has been greatly increased.
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Bob Lancaster Insurance
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