Showmen's Trade Review (Oct-Dec 1939)

October 14, 1939 SHOWMEN'S T R A U E R V I E W Page 22 How Theatremen Can Cut Cost of Liability Insurance What to Do and What Not to Do When Patron Accidents Occur in Your Theatre MORE and more insurance is being bought — and paid for — on the basis of cost. In other words, the liigher the losses, the higher the cost, and conversely, the lower the losses, the lower the cost. A theatre operator can, to a large degree, control his insurance costs. To a large degree he is in partnership with his insurance company. He is interested primarily in preventing accidents, but once the accident has occurred, he is interested in seeing that any claims in connection with accident are disposed of on a fair basis. It is to his interest to see that the insurance company is protected against excessive or fraudulent claims. First he can strengthen their case by getting at the time of the accident a complete story of just what happened. Without exaggerating the importance of the accident in the patron's mind, he can quietly get all of the essential facts, the names of witnesses, and a story from each of his employees connected with the accident or who saw it. May Prevent Litigation Perhaps his courteous and considerate handling of the patron may prevent litigation. Certainly the opposite will invite it. Next, he should be certain that the insurance company is immediately notified. When its representative arrives, he and his staff should extend every assistance. Often the manager of his staff may have some information as to the standing in the community of the injured patron, which the insurance company's investigator could not otherwise obtain. All of this can be worked out if there is cooperation. The manager and his staff should not however, once the case has been turned over to he insurance company, act without the insurance company's knowledge and consent. Neither he nor his staff should discuss the case with outsiders, nor should they permit an examination or photographs of the scene of the accident to be made without the consent of the insurance company. The theatre operator being in partnership with the insurance company has a right to know (and many insurance companies will welcome his interest) the progress of the case. Reserve for Settlements If the case is of importance, the insurance company will set up what is known as an estimate or reserve, representing what they believe the case will cost them to dispose of. They will let you know the amount of this reserve, and you are free to discuss Vi'ith them the correctness of this reserve. If the case is settled by litigation or otherwise, the actual final cost will take the place of this reserve. Thus you can know at any time the cost of your accidents and consequently your loss ratio. "Vou should keep a record in form for ready reference of all the accidents in your theatre or circuit of theatres. The reserve or cost of settlement should be entered opposite each. The losses should be kept totaled at all times, and compared with the premium earned up to that date. For example, if your annual premium is $1,200 and the policy has run for 8 months, $800 has been earned. If your losses have been $400, your loss ratio is 50%. If your loss ratio is much more than 50%, something is wrong and it is time to give more attention to accident prevention. Be assured that all of this will be interesting. A glance behind the scenes with the claims men and attorneys will be as interesting as many a mystery or crime story. Declared to be easily fabricated for indoor and outdoor applications, a new stainless steel "lumber" known as "Ludlite Bord" is being marketed by the Allegheny Ludlum Steel Corporation, Pittsburgh. Especially useful for displays, as shown above, the new product is said to combine advantages of stainless steel with load carrying ability of sturdy mineral composition backing material. The outer surface retains all the beauty and utility of stainless steel. New York's ''Most Famous Theatre" Gets a Face Lift Streamlined and richl}' handsome in its new outward appearance, the RKO Palace Theatre at 47th Street and Broadway presents an attractive example of the modified modernistic style in show house construction. Below are views of the remodelled Palace, whose historj' is the bright page of all of the most glittering memories of vaudeville and its headliners. The designer of the lobby and frontal changes that have completely modernized the Palace exterior is D. P. Canavan, manager of RKO's maintenance and construction department. The color of the marquee, shown in full in the photo at upper left, is in black, white and canary colors, with letter banks in dark oxidized copper. The borders are canary and the soffit is white. The lighting of the lobby vestibule is from overhead mazdas in the soffit of the marquee extension, as shown in photo at upper right. Herculite glass doors, manufactured by Pittsburgli Corning Glass Company, separate the vestibule from the inner lobby, but not so far as vision is concerned — the full glass doors permitting full view and adding to the sense of spaciousness of the lobby — note effect in photo at lower left. This view also shows the colorful floor treatment. The rubber mats are red and black and feature a diagonal design. At lower right is a view of the lobby from the inside looking out, in which ample display space for current and coming attractions is afforded by wellplaced wall frames and illuminated sign over entrance doors.