Showmen's Trade Review (Oct-Dec 1941)

November 8, 1941 SHOWMEN'S TRADE REVIEW Page 33 Public Liability Protection for the Theatre Henry Anderson, head of Paramount's insurance department, and leading theatre insurance buyer of the country, says that the very minimum any theatre should carry is $50,000/$l,000,000. He gave an example of the small cost of such policy as compared with the minimum and a policy for $20,000/$100,000 which some theatres carry. If the rate for a minimum policy is $100 ($5,000/$10,000), a $20,000/$100,000 policy will cost $153; a $50,000/$l, 000,000 policy would cost $177, an additional amount of less than 16 per cent. The owner or lessee of any theatre which carries Public Liability insurance cannot collect any money from the insurance company. All payments are made to the victims of accidents. sible. If it is a structural defect which the landlord knew about, the landlord is responsible. If the tenant is charged with the maintenance of the marquee, then the tenant is responsible. Of course, a Public Liability insurance policy will refuse to pay a claim for any accident which is not the fault of the policy holder, unless the company should decide that the point is debatable and pay a small claim simply to avoid litigation. ' The policy covers the holder's liability to anyone who is injured while in the theatre, unless the injured person is an employe of the theatre, in which case the Workmen's Compensation or Employers Liability Insurance covers. Here's Practical Information on a Form of InsuranceWhich Every Exhibitor Should Carry Next to Workmen's Compensation Insurance, the policy which is carried by the greatest number of theatres in the country is Public Liability. Failure to carry such insurance might easily put a theatre company out of business. Confusion exists in the minds of many a theatreman who rents his theatre as to the liability of the landlord for an accident. There is no set rule for this. It all depends on the lease. However, unless a lease specifically absolves a lessee of all responsibility for accidents, most of the mishaps that occur in the theatre will be attributed to the management by the courts. A Public Liability insurance policy covers the legal liability of an owner or operator of a theatre with respect to injuries or deaths sustained by persons other than employes as a result of accidents arising out of the operation of the theatre. Rates are based upon attendance — the charge being so much per each 100 persons admitted to the theatre. The premium is the rate multiplied by the attendance. An exhibitor who has a Public Liability policy is required to open his books for the insurance company's auditor so that the attendance may be verified. In many cases, a simple statement of the attendance will be accepted by the company but the right is reserved to inspect the books, if the company so desires. Since the premium is payable in advance, the estimate for the previous year is taken, and the figure arrived at is subject to later adjustment. Policies Written in Two Amounts Policies are written in two amounts. One is the maximum for which the company will be responsibility for death or injuries to one person and the second amount is the maximum for which the company will be responsible for the deaths or injuries of any number of persons in one accident. The minimum amounts for which policies will be written are $5,000/$10,000 ; that is, $5,000 for the death or injury of any one person and $10,000 for the death or injury of two or more persons in any one accident. Theatres have been built in connection with almost every conceivable type of building; some are in buildings housing churches ; some in hotels ; some in general recreation centers ; some in ordinary office and business buildings. But one of the most novel is one being erected by Truman Rembusch in Columbus, Ind., to be part of an apartment building. The building will be of four stories. Plans drawn for it by Alden Meranda, Indianapolis architect, call for a theatre on the street floor without any balcony. It will contain 400 seats, be air-conditioned and of fireproof construction. It will have a large foyer and rest rooms and the latest style equipment. On each of the three floors above the theatre What to Do in Case of Accident The policy holder owes a duty to the insurance company which is protecting him from losses. When an accident occurs, a doctor may be called to give first aid treatment. If the patient requires hospital treatment do everything possible to see that he gets there. But make it plain to the doctor and the hospital that you are not responsible for any charges they may make. The insurance company may settle for any such bills, but the policy holder has no right to obligate the company to do so. It is also the duty of a policy-holder to preserve all evidence and obtain the names of witnesses to all accidents to aid the company in speedily settling all claims. Failure to cooperate may void your insurance. The uncooperative policy-holder may some day find that he can no longer obtain insurance. Public Liability insurance is a personal contract between the policy holder and the insurance company. Therefore, the owner's insurance will not cover a lessee's liability. In general, the operator of the theatre is responsible for any accident that may occur, unless his lease states otherwise. However, should there be any defect in the structure which the landlord knew about, a court would probably hold that the landlord was responsible. Such matters as who is responsible for cleaning the sidewalks in front of the theatre depends on the terms of the lease ' and city ordinances. If, for example, the marquee falls down and injures someone beneath it, the cause must be determined to ascertain who is respon will be four efficiency apartments, with carpeted floors, baths with glass wainscotting, large living rooms with picture windows, kitchenettes and dinettes. The apartments will be equipped with roll-away beds. The front of the building will be of structural glass and porcelain glass blocks. It will have a marquee with fluorescent lighting effects. According to C. E. Rogers, Columbus manager for the Rembusch Circuit, Mr. Rembusch, in planning the building, was principally interested in the apartments. Columbus needs apartments more than it does theatres, but since the first floor of an apartment building provides a good location for a theatre, he decided to add another theatre to his circuit. 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