Showmen's Trade Review (Oct-Dec 1941)

Page 40 SHOWMEN'S TRADE REVIEW October 11, 1941 What Insurance Means to the Theatreman Work men s Compensation and How It Applies to Protection for Theatre Owners While nearly every theatre in the country carries some forms of insurance, it is the belief, of many insurance men that a large number of theatremen do not understand their insurance policies. What each policy covers, why it should be taken out, how the rate is figured and to whom claims are paid, are all important matters. STR has consulted Henry Anderson, head of Paramount's Insurance Dept., and obtained from him data on different types of policies. First, in point of number of theatres holding it, comes Workmen's Compensation Insurance I Just to remind you ( | In these critical days, exhibitors can j 1 count on "NLS" to see them through | I an emergency or a real breakdown, i * ★ * I "NLS," of course, is National Loan | 1 Service . . . mechanisms, intermittents, I 1 lamps and other projection equipment § | — all for your use, without cost. 1 * * * 1 Here, if you like figures, are some sta | I tistics on National's vast stock of Loan | 1 Service equipment. g I * * * 1 In a straight line three feet wide, Na | | tional Loan Service equipment would I | stretch for half a mile. All told, it re | | quires 7000 feet of storage space. It's | 1 valued at close to a half-million dollars. j 1 * * * 1 In this stock there is a mechanism for | I every 35 theatres in the United States. | I There's an intermittent movement for | 1 every 25 theatres. § * * * I Every year National Loan Service does 1 | over one million hours of work in the I 1 atres, absolutely free. In total elapsed | | time, that adds up to 40,000 days, 1500 | 1 months, or 125 years' work. | * * * 1 1 This Colossus of (Loan) Service is at | 1 your service at any time. And we mean § | any time. Because day or night there's | | a National Theatre Supply Company | | branch near you. I § * * * 1 Have you discussed your equipment | | with a National representative lately? | ( NATIONAL THEATRE ( I SU PPLY COMPANY | * j | Protect your theatre against breakdowns. § | Get a National Equipment Check-up today. § %!iiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiniM^ and/or Employers' Liability Insurance. Practically every state now has a law requiring an employer to carry such insurance. The sole exceptions are Mississippi and Arkansas. However, some states do not include theatres in the list of businesses or employers which must have this coverage. But in most of them, theatremen have found it advisable to register with the State Industrial Commission the fact that they have accepted the law as applying to them and are therefore covered under it. In six states, the insurance must be written by a State Fund out of which claims are paid as they arise. They are Washington, Oregon, Nevada, Wyoming, North Dakota and Ohio. In eleven other states, the employer has the option of either placing his insurance through a private insurance company or through the State Fund maintained for the purpose. In all the others, it is obligatory for an employer to hold a policy covering Workmen's Compensation written by a private insurance company. In any event, it is considered advisable for every theatre to have such insurance. Even if he is not legally obligated to carry it, there is a moral obligation on every employer to do so. Purpose of Insurance The purpose of such insurance is to cover the employer's liability under whatever law governs the matter in the particular state in which he does business ; if an employer does business in several states, employing others in all of them, he must have insurance wherever he employs people. Before the passage of Workmen's Compensation Laws, any employe could sue an employer for injuries sustained during working hours and could recover provided he could show negligence on the part of his employer. Since this was often difficult to prove, many an employe became a public charge. The purpose of the Workmen's Compensation Laws was to charge the cost of accidents in industry to the industry and not to the general public. Workmen's Compensation Insurance covers the liability of a corporation or individual operating a theatre for injuries sustained by any employe arising out of and during the course of his employment. The rates are fixed by law in all states except Mississippi and Arkansas. They are based on the payroll, the premium being so much for Unusual cases arise under the Workmen's Compensation Laws. Following are three recent examples : A district manager held a meeting of managers in a centrally located spot a few miles from his own office. After leaving the meeting, he was killed in a motor accident. The question then arose as to his destination after leaving the meeting. If he was going to his home, his widow is not entitled to compensation. If, on the other hand, he was returning to his office, and this could be proved by any statement he made to anyone, compensation would be paid. A bill poster in the course of his rounds was killed in a motor accident. In his case the same question arose. Had he finished his billposting, or was he on the way to another stand? In the first case he would not be entitled to corn each $100 of weekly payroll. Therefore, each time you add an employe, or raise a salary, you must pay an additional premium. An audit is made of each employer's books for the purpose of determining the premium. If an exhibitor operates his theatre as a corporation and receives a salary as manager, even though he is the sole stockholder of the corporation, he comes under the Workmen's Compensation Act. So also does his wife, if she is actually employed in the theatre, as cashier or bookkeeper or secretary of the corporation. Report to Company, Not Broker When an employe is injured, the accident must be reported immediately to the State and to the insurance fund or the insurance company as the case may be. It is required by the policy that the insured report the accident to the company, not to the broker. If the employer so elects, he may pay the employe's salary for the period during which he is unable to work. In that case, the insurance company or the State Fund will reimburse the employer to the extent of the claim allowed. If, however, the employer elects not to pay the salary of the injured employe, the insurance company or the State Fund will then pay the money direct to the employe. Some states have maximum periods during which an employe may draw compensation either from the state or from an insurance company and some prescribe certain waiting periods ; that is, the payments do not commence until a certain period after the accident. In any case, the employe may not profit from his accident, financially. If his employer pays his salary, he may not also collect from the insurance company or the state ; in that case, the employer is reimbursed to the extent of the law. This is to prevent any employe from taking advantage of a kind hearted boss and collecting double salary for the period during which he is incapacitated. If in those states where there is no fund, an insurance company refuses to write a policy for any employer, thus not enabling him to comply with the law, he has no alternative but to go out of business. Therefore, all of the rules made by the company, eliminating hazards to employes and requiring an audit of the books, must be heeded by the employer at the peril of losing his right to do business. pensation ; in the second, he would be. The theatre company involved in this case to protect employes now requires bill posters to return to the theatre to leave supplies. An usher, while on his relief period, went to the booth to watch the projectionist work. While there, he burned his hand and was unable to work for some time. The question arose as to whether he was performing his duties while in the booth, where he claimed to have been attempting to learn how to operate the machines. These and similar questions must be decided by courts. In one state, one decision might be made, while in another the opposite might be considered just. In any case, the exhibitor covered by Workman's Compensation or Employers' Liability Insurance has no need to worry about his financial responsibility. UNUSUAL COMPENSATION CASES RECENTLY RECORDED