Amusement Devices

What Does GL Code 40040 Cover?

ISO GL class code 40040 covers businesses involved in the ownership, maintenance, or operation of amusement devices, including rides, games, and attractions. This class specifically classifies operations where the primary exposure arises from the public's interaction with mechanical or electronic devices designed for entertainment. It encompasses a broad range of amusement activities, from carnival rides to arcade games, focusing on the liability associated with their use and potential malfunctions.

Who Uses This Class Code?

This code is typically used by carnival operators, amusement park owners, family entertainment centers, arcade businesses, fairground operators, and companies that rent out amusement devices for events. Businesses that install, service, or maintain these devices, such as ride manufacturers or repair services, would also fall under this classification. Essentially, any entity responsible for the safety and operation of amusement devices for public use.

Common GL Claims for This Class

Common claims include bodily injury from falls, mechanical failures leading to rider ejection or entrapment, and injuries sustained due to inadequate supervision or faulty equipment. Property damage claims can also arise from device malfunctions or improper setup.

Coverage Tips for Code 40040

• Ensure your policy includes adequate products-completed operations coverage, as many claims arise from device malfunctions after initial setup or during ongoing operation.
• Verify that all amusement devices meet current safety standards and are regularly inspected, as failure to do so can lead to coverage denials or increased premiums.
• Implement strict waiver and release of liability forms for participants, especially for higher-risk attractions, and ensure they are legally enforceable in Florida.
• Understand your policy's audit basis, typically gross receipts, and maintain meticulous records to avoid unexpected premium adjustments.