Bowling Centers
Revision : Friday, July 06, 2012
BEST'S HAZARD INDEX
Best's Hazard
Index
Line
Underwriting Comments
Automobile Liability
2
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General Liability: Premises and Operations
5
Slips, trips, and falls.
Product Liability and Completed Operations
4
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Liquor Liability
4
------
Workers' Compensation
4
------
Crime
5
------
Fire and E.C.: Property
6
Higher if insured has lacquer-based finishes on
lanes.
Business Interruption
5
------
Inland Marine
3
------
Low 1-3, Medium 4-6, High 7-9, Very High 10
SIC CODES AND CLASSIFICATIONS
7933
7997
Bowling Centers
Membership Sports and Recreation Clubs
NAICS CODES AND CLASSIFICATIONS
713950
713990
Bowling Centers
All Other Amusement and Recreation Industries
RELATED CLASSIFICATIONS
Bars, Taverns, Cocktail Lounges and Nightclubs
Fast Food Restaurants
Sporting Goods Stores
Vending and Amusement Machine Operators
RISK DESCRIPTION
Bowling centers today are not dark and smoke filled bowling alleys, but rather are clean, high class, and many times
family-oriented entertainment centers. The bowling industry also has moved quietly away from the term bowling alleys, in
favor of the more business-like bowling centers. Additionally, other changes have been implemented to improve the public's
perception of bowling as a sport. For example, the grooves along the sides of bowling lanes are no longer referred to as
gutters, but as channels. These changes mainly are aimed at ending bowling's image as a blue-collar game only for adults.
To further attract families, children, and young people, modern bowling centers now offer full-service or fast food chain
restaurants, billiard tables, video game machines, and cosmic bowling.
Cosmic bowling is the industry's attempt to draw teenagers and adults into local bowling centers. In cosmic bowling,
the lights are turned out on the lanes around 11 p.m. or midnight and lasts until 2 a.m., dance or rock music is cranked up,
black lights and lasers are turned on, and fog machines also may be used to obscure the players' vision. The balls, lanes, and
walls are all coated with special paints that glow when exposed to ultraviolet black light. Mirrored balls hung from the
ceiling cast rotating light spots on the floor and walls, as planets, stars, and other designs that are invisible in the daylight
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.
Bowling Centers
Best's Underwriting Guide
suddenly appear painted on the walls. While not popular with most league bowlers due to the distracting elements, many
young people have responded very enthusiastically to cosmic bowling. All of the special effects serve to create a party
atmosphere that appeals to casual bowlers who may not view the sport as seriously as league members do. So far, the
numbers have proved very positive – in Atlanta there is typically a two-hour wait for lanes at cosmic bowling centers, while
centers in Illinois now have a cover charge on Friday nights.
Bowling centers have computerized a number of aspects of the game with the addition of automatic scoring machines.
Combined with automatic pin spotters, a scoring machine detects how many pins were knocked down, whether the player
stepped over the foul line, and keeps a running total of the players' scores. These machines also can recommend where to
throw the ball for a spare based on which pins are standing. While league veterans may scoff at such crutches, most casual
bowlers have welcomed automatic scoring machines as an aid in deciphering potentially confusing rules.
Industry experts acknowledge that revenues earned from league members comprise the bulk of the bowling business,
because they purchase accessories, uniforms, and balls. However, many people's lifestyles have changed, and it is now
harder for players to commit to be in one place for 35 straight weeks. Occasional bowlers are now often as equally coveted
as leaguers.
The crown jewel of bowling centers is the immense National Bowling Stadium in Reno, Nevada. This complex features
78 lanes; glass elevators and an escalator for bowlers to reach the fourth floor; a turn of the century decorated room to host
events equipped with a full service bar, large screen television, and billiards tables; and a 172-seat theatre with a 4-story
screen.
According to 2007 Economic Census statistics compiled by the US Census Bureau, there were 4,564 bowling centers in
the country, with a typical center employing on average 17 employees. In general, smaller, older, and rural centers are the
ones shutting down, while the newer centers tend to be larger and located in thriving urban or suburban commercial
shopping areas. The newer, larger centers often employ between 10 and 50 workers, while the smaller or older ones may
have only one to four workers.
The hours of operation of a bowling center are usually from noon until midnight during the week, and open later until 1
a.m. or 2 a.m. on Fridays and Saturdays. Most are open seven days a week. Since many bowling centers sponsor league play
and tournaments, they often will suspend or reduce the amount of open bowling on those nights. Once league play is over,
open bowling hours will resume again. Most league play will require two to three hours per night, often once per week.
Leagues usually are sponsored by a particular bowling center. Each league may have 10 or more teams in them. Teams
are based on players' average scores, ages, gender, or employment in a sponsoring company. Champion teams may move up
to regional or state tournaments.
The Bowling Proprietors' Association of America (BPAA, which may be reached at www.bpaa.com) is a national trade
association representing bowling centers in the US. Other country-specific trade associations include the Australian
Bowling Proprietors' Association (ABPA, which may be reached at www.abpaltd.com) and the European Bowling
Proprietors' Association (EBPA, which may be reached at www.ebpabowl.com). The Bowling Proprietors' Association of
Canada, operating as Bowl Canada (which may be reached at www.bowlcanada.ca) represents some 500 bowling centers
across that country.
MATERIALS AND EQUIPMENT
Automated equipment: pinsetters, ball return machines, scoring machines.
Tables, benches, chairs, racks, bowling balls, shoes, and accessories.
Maintenance equipment: lane conditioners, floor machines, welding equipment.
Ball drillers, grinders, engravers, ball cleaning units.
Oils, solvents, finishers, and cleaners.
Kitchen and bar equipment, food supplies, alcohol, mixers, glasses, plates, utensils, and paper plates and napkins.
Entertainment equipment: stereo, speakers, fog machine, lasers, black lights.
NARRATIVE LINES OF LIABILITY
Automobile Liability
The Automobile Liability exposure for bowling centers will be minimal. Most insureds will own or lease one or two
trucks to pick up supplies and run local errands, such as bank deposits. Transportation to and from the premises is the
responsibility of the patrons and business-related travel by the insured's employees will be infrequent. Most of the insured's
employees will use their own vehicles for business-related travel.
What are the number, age, type, and condition of the insured's vehicles? Determine if the insured's vehicles are owned
or leased. Most of the insured's employees will use their own vehicles for running errands and/or making bank deposits. If
employees use their own vehicles for such travel, a nonowned vehicle exposure will exist. The underwriter should confirm
personal insurance at an acceptable limit.
What are the insured's frequency of travel and radius of operations? Business-related travel for most insureds will be
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.
Bowling Centers
Best's Underwriting Guide
infrequent. Insureds that require employees to travel will include running local errands, such as making bank deposits and/or
picking up supplies. If the insured operates another bowling center, managers or owners may travel between the two centers.
What are the typical hazards faced by the insured's drivers? Drivers will face such common driving hazards as
inclement weather, traffic congestion, road construction, and poor road conditions. Does the insured operate in a rural or
urban setting? Urban and suburban areas may experience greater traffic volume, while unpaved roads are more likely to
exist in rural areas.
Inclement weather conditions (rain, snow, ice) can sometimes contribute to accidents. Does the insured require its
drivers to turn on their vehicle's headlights before dusk, and use extra caution when driving in bad weather? In addition,
drivers should not exceed posted speed limits. Drivers should also maintain sufficient stopping distance from vehicles ahead
of them. Are drivers instructed to use their own judgment about returning to the bowling center if road conditions become
particularly hazardous?
What are the ages, training, and experience levels of the insured's drivers? Have MVRs been obtained on all drivers?
Since the Fair Credit Reporting Act in the US requires written permission from the driver to obtain MVRs, the insured
should make obtaining them part of the hiring process. Does the insured employ any drivers under the age of 25? If so, a
youthful operator exposure will exist. Is there a driver safety training program in place?
Today's vehicles have many electronic distractions, such as navigational and communications devices. These tools may
be factory-installed or brought into the vehicle by the driver, but all have to potential to create distractions that could lead to
a motor vehicle accident. What types of electronic distractions are present in the insured's vehicles?
Some of the insured's vehicles will be equipped with two-way communication systems, such as portable/cellular
telephone that permits drivers to remain in contact with the bowling center. Do the insured's vehicles have a two-way
communication system? Insureds could be held liable for damages that occur as a result of drivers using cell phones while
driving. Are driver safety courses offered that include cell phone safety tips? Throughout the US, individual states and the
District of Columbia have enacted cell phone and texting while driving restrictions. Depending on the state, some laws are
restrictive (i.e., they ban cell phone use and testing while driving and require the use of hands-free devices) while others
place no limits on cell phone use. Often, states' driving-while-distracted laws and regulations will restrict the use of cell
phones according to the age or experience of the driver (e.g., 18 or under, student, or probationary) or the occupation of the
drive (e.g., school bus operator, truck driver). Canadian distracted driving laws are similar to those in the United States, and
depend on the Canadian province or territory. Elsewhere, distracted driving laws are just as varied. Japan prohibits all
mobile phone use while driving, including the use of hands-free devices. Between 2009 and 2010, Australia and New
Zealand enacted bans on the use of mobile phones and text messaging while driving; both currently permit the use of
hands-free devices. All EU nations, with the exception of Sweden, ban handheld cell phone use while driving but permit the
use of hands-free devices. Ten of the 27 EU member states specifically prohibit texting. In the UK, distracted driving laws
prohibit the use of handheld mobile phones and currently permit the use of hands-free mobile devices.
How often do drivers go to new or unfamiliar locations? If drivers must venture into unfamiliar territory, what kind of
navigational assistance does the insured provide – maps or global positioning system (GPS) devices? Are any of the
insured's vehicles equipped with built-in or portable GPS units? If so, this is a positive underwriting sign. Even though the
use of GPS has obvious benefits, unfortunately, one drawback is that they can cause drivers to become distracted when they
are operating a vehicle. Whether factory-installed or portable, GPS units momentarily require the drivers' attention and
many will call attention to themselves simply as an inherent part of their usage and design. If the insured uses GPS in its
vehicles, has it selected models that are designed to be minimally distracting? Units that are dash-mounted should be
positioned in such a way that they do not block the vehicle operator's view of or access to any other gauges or controls. In
addition, the mounting unit must be sturdy and hold the GPS steady. Since the most obvious source of distraction when
using GPS is inputting the route information, the insured should instruct its drivers to always do this before engaging the
vehicle. Do the GPS units that are used by the insured have screens and text that are clearly legible, as well as audio
commands that are easily understood?
Who is responsible for maintaining any company-owned vehicles? Vehicles should be repaired promptly and inspected
regularly. It is a positive underwriting sign if the insured contracts out vehicle maintenance to experienced mechanics.
Employees should not be permitted to repair or assist in the repair of any company-owned vehicles. Does the insured
contract out vehicle maintenance and repair services? If so, determine the experience and qualifications of the insured's auto
repair contractors. Are any of the insured's mechanics Automotive Service Excellence (ASE)-certified?
General Liability: Premises and Operations
The General Liability: Premises and Operations exposure for bowling centers will be moderate. Bowling presents a
number of relatively minor exposures, such as those incurred as a result of slips, trips, and falls. Birthday parties at the
center will have a large number of children on the premises. Customers may also be injured at snack bars, restaurants, or in
pro shops.
What is the layout of the bowling center? In addition to the bowling lanes, there will also be rest rooms, locker areas, a
bar and snack area, a restaurant, a pro shop, a rental area, and possibly an arcade, game room, and/or billiards room.
Lockers can be used by customers to store their possessions while they bowl. Bars and snack areas typically will offer
alcoholic beverages and fast food meals, such as hot dogs, hamburgers, pizza, and french fries. Some bowling centers will
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.
Bowling Centers
Best's Underwriting Guide
offer full-service restaurants. Most bowling centers will have a pro shop where customers can purchase new bowling balls
and where the balls can be drilled to the exact size of customers' fingers. Rental areas will offer bowling shoes to customers,
sometimes in exchange for the customers' own shoes as a security measure.
What are the insured's hours of operation? The bowling center's operating hours are usually from 10 a.m. until midnight
through the week; closing later (1 or 2 a.m.) on Fridays and Saturdays. The busiest hours will be during the evenings of
league play.
What are the average and maximum numbers of visitors to the insured's premises? Most bowling centers will have
hundreds or thousands of customers per week, especially in the evening or when leagues bowl. Centers that offer cosmic
bowling will have large crowds in the evening on weekends, and large numbers will also be present during daytime hours
when children's birthday parties are scheduled. Other visitors include bowling equipment and lane service personnel,
delivery personnel for snack bars and pro shops, and friends and family members of the insured's employees.
Slips, trips, and falls will be the most likely source of injury to visitors. Inadequate lighting, worn floor coverings,
stairways or ramps without sturdy handrails and nonslip treading, as well as poor housekeeping all contribute to the
potential of customers being injured. Good housekeeping is an essential loss control measure. Bowling lanes are themselves
inherently slippery due to the lacquered finish. Are signs warning patrons of the importance of wearing the appropriate
shoes on lanes and to not bring food or beverages near lanes? Does the insured post bowling etiquette rules for all patrons to
see, such as not to bowl if the person in the next lane is ready to deliver the ball? Signs regarding other common courtesies,
such as not being rowdy and no horsing around, should also be posted.
Are bowling and eating areas neat and free of clutter? Aisles and common areas between bowling ball racks should be
sufficient in width. Are aisles, stairs, and hallways free of debris? Electrical and telephone cords should be routed around
doorways and walkways. Cords that must cross doorways or walkways should be covered with a mat or otherwise secured
to the floor.
What is the condition of the insured's floors and floor coverings? Worn, torn, or loose floor coverings should be
repaired or replaced immediately. Floors should be swept, vacuumed, or mopped daily. Does the insured have a policy
prohibiting the consumption of food and beverages near alley approaches? Spills should be cleaned up promptly and
"Caution – Wet Floor" signs displayed over the affected area. Is trash and rubbish removed from the premises on a daily
basis? Some areas, such as kitchens and behind bowling lanes, will be off limits to everyone but authorized personnel. Are
"Employees Only" signs posted at entrances to areas from which customers are restricted? If the insured has stairs on the
premises, are they in good condition, and equipped with sturdy handrails? Are their treads covered with nonskid material?
What is the condition of the insured's furniture and furnishings? Customers may be injured by furniture, such as chairs
that are unsteady or tables that have sharp or pointed edges. All furniture should be sturdy and free from protruding nails,
splinters, and screws. Is furniture periodically inspected so that it can be repaired or replaced as necessary? Determine who
is responsible for the maintenance and repair of the insured's furniture and furnishings. What is that person's reputation and
qualifications?
Glass display cases in pro shop should be free of cracks and chips. Customers could receive cuts and lacerations from
leaning on glass display cases that are cracked or have jagged edges; it is recommended that any damaged glass panes from
display cases be promptly repaired.
Hand and finger injuries are common at ball returns and ball racks. Are warnings posted on ball returns and related
equipment informing customers of the potential risks of finger entrapment? Most modern ball returns are equipped with
guards and bumpers to prevent injuries. In addition to customer injury, damage to customers' bowling balls from improperly
functioning ball returns could generate claims. What are the type and condition of the insured's ball return machines? How
frequently are they serviced and repaired?
Bowling balls are heavy and customers could suffer foot injuries if they were to fall from racks or if the bowling racks
are unsteady and topple over. What is the age and condition of the insured's ball racks? All ball racks should be secured
properly to the floor to prevent them from toppling over. Racks should not be higher than elbow level.
Do employees assist customers in selecting the proper weight ball? Children and seniors should be assisted or
supervised when selecting balls from the racks to avoid the selection of a ball that is too heavy. For example, at children's
birthday parties, are ball racks filled only with the appropriate weight ball (e.g., six pounds) for children? Inexperienced
bowlers also may require assistance when selecting the proper ball. New bowlers may not know the proper method of
delivering the ball down the lane, and a ball that is too heavy may injure patrons if it is dropped or flung backwards. Are
new bowlers offered instruction in the proper way to deliver the ball down the lane? Children should also be instructed to
never try and retrieve bowling balls that do not go down the lane since lanes are extremely slippery.
Electrical shocks from improperly grounded or maintained equipment are another potential hazard to the insured's
customers. Bowling centers have a number of equipment that are accessible to customers, including ball return units, ball
polishers, vending machines, and often a game room full of coin- or token-operated video games. What are the age, type,
and condition of the insured's electrical equipment, such as arcade games and vending machines? Is all equipment in good
repair, NRTL-listed, and properly grounded? Does the insured have a maintenance plan in place for electrical equipment?
Electrical equipment should be inspected and maintained by a licensed electrician.
If there are public restrooms on the premises, they should be maintained regularly and adequately. Slips and falls could
occur if floors are not kept clean and dry, or if wet areas are not marked with signs indicating the floor is wet and caution
should be exercised. Are the insured's public restrooms in compliance with state and federal regulations governing health,
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.
Bowling Centers
Best's Underwriting Guide
cleanliness, and handicapped accessibility?
Restaurants and bars will increase the General Liability: Premises and Operations exposure for bowling centers as a
result of additional hazards of crowded seating areas, burns from hot food, and beverage spills. Does the insured have a bar,
grill, or a small snack area on the premises? What is the level of housekeeping in these areas? Are these areas swept and
mopped regularly? Are spills cleaned up immediately? The underwriter should review the General Liability: Premises and
Operations sections of the Fast Food Restaurants and the Bars, Taverns, Cocktail Lounges and Nightclubs reports for
discussions of these exposures.
Some bowling centers will host Pro Bowling Association (PBA) tournaments during league seasons. Does the insured
ever hold tournaments? If so, the center will have a large number of spectators on site during the tournaments, as well as
television crews if the tournament is being filmed for television. Who is responsible for crowd control at such events – the
insured's employees or a contracted third party security service? If the insured's employees are responsible for crowd
control, have they been properly trained in crowd control techniques?
Are there an adequate number of accessible, properly illuminated exits, equipped with panic hardware? Are all exits
kept free of excess equipment and/or furnishings that could delay egress? Smoke detectors, fire alarms, and automatic
sprinkler systems should be installed throughout the bowling center.
Are employees familiar with appropriate evacuation procedures, and are directions posted for the public? The building
also should be equipped with an emergency backup lighting system, and an emergency communication system, such as a
bullhorn or battery-operated speaker system. Assess established evacuation procedures. The insured should be in
compliance with NFPA 101, Life Safety Code. Is first aid equipment available for treating minor injuries? Are employees
trained in administering first aid? Ideally, first aid kits should be placed in several easily accessible locations throughout the
facility.
Most bowling centers will rent bowling shoes to patrons. Does the insured rent bowling shoes? Are rental bowling
shoes disinfected and inspected between each use? Are laces checked for wear or breakage? Improperly fitting shoes can
also cause injuries; loose shoes may present a tripping hazard, while tight shoes may injure customers' feet. If rental shoes
are repaired on the premises, are repairs made by trained personnel? What are the experience and training of the personnel
who repair the insured's rental bowling shoes? Bowling centers may provide lockers where patrons may store their personal
possessions while they bowl. Are locker areas kept clean and in good repair with no protruding screws or bolts or ragged,
sharp metal edges which could injure patrons?
What kinds of parking facilities are provided? For bowling centers that are part of a mall environment, theft or
vandalism to customers' vehicles may be problematic, especially where no surveillance devices or attendants are present.
Notices warning customers that they park at their own risk can help discourage lawsuits but may not remove liability for
incidents that occur. Claims could also arise from physical damage to customers' cars caused by parking lot obstructions and
the insured's failure to provide adequate traffic control markings or signs. Delivery personnel should be encouraged to park
their vehicles in an area that will not block customers' access to the insured's main entrance. A separate rear entrance for
deliveries is preferred to reduce possible collisions between customers' vehicles and delivery trucks as well as between
customers and delivery personnel.
What is the condition of the insured's sidewalks and parking facilities? Sidewalks and parking lots should be well lit
and free of cracks or potholes that could cause visitors to trip and fall or lead to other accidents. Have arrangements been
made for the prompt removal of ice and snow? Insureds that are tenants in a mall or shopping center may share this
responsibility with other mall tenants, or the mall may assume full responsibility; examination of the insured's lease to
determine its liability is warranted.
Product Liability and Completed Operations
The Product Liability and Completed Operations exposure for bowling centers that operate restaurants, snack bars, and
bars will generally be minor. Most claims will arise from foreign objects in food; spoilage or deterioration due to age or
improper storage and/or temperature control; and possibly contamination. Insureds that operate a pro shop may have claims
from faulty merchandise or equipment.
What are the types and amounts of products sold by the insured? Most bowling centers will sell equipment and apparel
at pro shops as well as offer repair services for equipment, such as redrilling holes in bowling balls. Many bowling centers
will also have some sort of food establishment (e.g., snack bar, restaurant, bar, or vending machines) on site.
Does the insured have a pro shop on the premises? Most bowling centers' pro shops will likely sell a majority of
merchandise relating to bowling paraphernalia (e.g., gloves, bowling ball carriers, and T-shirts), and footwear (e.g., bowling
shoes). The clothing and footwear will be manufactured by someone other than the insured; however, the insured's name or
logo may appear on the clothing. Who manufactures the clothing and bowling equipment that the insured sells, and what are
their reputations and loss histories? Although claims against retailers for faulty garments are unlikely, since suits typically
are directed primarily at manufacturers, the exposure increases if the insured's name appears on the clothing. In any event,
the insured likely will sustain substantial legal defense fees even in cases where the manufacturer is found liable. Are there
any items manufactured abroad? Making a foreign manufacturer party to a lawsuit can be difficult. For more information on
exposures relating to the sale of clothing and footwear, refer to the Product Liability and Completed Operations section of
the Health Clubs report.
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.
Bowling Centers
Best's Underwriting Guide
Some bowling centers will have a snack bar or full-service restaurant on the premises where workers will prepare and
serve foods and beverages. Does the insured receive the bulk of its food items prepared and/or prepackaged, or are the
workers responsible for preparing food items from raw ingredients? Determine the reputation and loss history of all food
suppliers. Even if the insured has a long standing relationship with its suppliers, all shipments should be checked for quality.
Are all food items that require refrigeration, such as dairy products, refrigerated immediately upon delivery? It is
recommended that all shipments of dairy products be checked by employees when they are received to verify that freshness
dates on cartons are current.
What is the management's attitude toward cleanliness in the snack bar or restaurant? Good housekeeping in the kitchen
area is the best method of defense against food poisoning and foreign object claims. All foods must be checked thoroughly
before being cleaned and prepared; storage containers must be properly marked and covered. Has the insured ever been
cited for a violation of local Board of Health regulations? Are employees designated cleaning duties? Floors should be
swept or mopped at the end of each shift. Garbage should be emptied daily, and containers washed or sanitized at the close
of business. Are tables and snack counters washed down after patrons leave?
Proper room temperatures must be maintained in all food preparation areas. The US Food and Drug Administration
(FDA) requires that all vapors or fumes be vented outside. Proper ventilation must be provided in hot food preparation
areas, utensil washing areas, garbage storage areas, and restrooms. All kitchen hoods should be NFPA-approved and should
provide the proper amount of exhaust recycling in cubic feet per meter (cfm).
Proper dishwashing techniques are important to ensure that all glasses and dishes are sanitized. Before sanitizing,
dishes must always be washed and rinsed thoroughly. In the United States, FDA Food Code 4.501.111 Manual
Warewashing Equipment, Hot Water Sanitization Temperatures requires that water temperature for dishes be maintained at
171°F (77.2°C) or above. What is the requirement where the insured operates? During peak hours, the dishwasher may be in
constant operation. Is there an adequate supply of hot water to ensure that all dishes are properly sanitized?
Pest control is an important factor in preventing unsanitary conditions in snack bars, restaurants, and pantry/storage
areas. Pest control should be achieved by good housekeeping rather than a dependence upon pesticides. Careful application
of chemicals is important as food items or serving ware and utensils may inadvertently be contaminated. Is this service
contracted out to a reliable pest control service? What types of chemicals are used by pest control services? How does the
insured safeguard food items, serving ware, and/or utensils from coming into contact with pesticides or other chemicals?
What is the level of hygiene of the insured's workers in food preparation and serving areas? Strict hygiene should be
enforced, especially after breaks. In addition, food service workers with long hair should be required to tie it back or wear a
hairnet or cap. Does the management post a policy on the proper hygiene? Signs should be posted in restrooms stating that
all employees are required to wash their hands after using or cleaning the facilities.
Is any merchandise or food sold in vending machines? Ascertain the number and types of machines on the premises,
the vendor's reputation, and whether or not any liability is assumed by the insured. For additional information on related
exposures, the underwriter should review the Product Liability and Completed Operations section of the Vending and
Amusement Machine Operators report.
Liquor Liability
Some bowling centers will operate a restaurant and/or a bar on the premises that serves alcoholic beverages. An insured
may be held responsible for bodily injury or property damage caused by a patron who consumes alcohol at their
establishment. The insured should also avoid selling or serving alcohol to minors. The Liquor Liability for bowling centers
will be minor.
Most states have passed dram shop acts, liquor control laws, or alcoholic beverage laws that hold the seller of alcoholic
beverages responsible for bodily injuries or property damage arising out of the selling, serving, or furnishing of alcoholic
beverages. Under a number of statutes, the insured may also be held liable for tortious conduct of intoxicated patrons. In
some states, particularly if the intoxicated person is a minor, the insured will be responsible to the minor as well as to third
parties who have been injured by the minor's actions while under the influence of alcohol. Laws affecting the Liquor
Liability exposure, however, range from limited immunity for alcohol servers to forms of strict liability. What is the law in
the insured's state of operation? It is recommended that the underwriter remain informed of all legislative and judicial
actions affecting the exposure in the state where the insured operates.
Determine the percentage of liquor sales compared to food sales. Any establishment that receives more than 50% of its
revenues from liquor sales should be underwritten as a bar. It is a positive underwriting signs if less than 25% of the
insured's restaurant revenue is received in liquor sales and certain controls (e.g., three-drink limits) are implemented to
discourage excessive consumption of alcoholic beverages.
Does the insured have controls in place to avoid serving liquor to minors? All states prohibit persons under the age of
21 from purchasing and consuming alcoholic beverages. Does the insured post a sign stating that customers must be 21 and
must provide photo identification in order to be served? To avoid selling alcohol to minors, alcohol servers must check
identification of all patrons of questionable age. What training do employees receive in age verification procedures? What
types of identification does the insured require customers to present? Acceptable documents include a state-issued driver's
license, a current passport, a county-issued identification, or an original birth certificate.
Do alcohol servers receive training in recognition and methods of dealing with intoxicated customers? It is a positive
Source: Best's Underwriting Guide, Version 2012
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Best's Underwriting Guide
underwriting sign if servers have passed a Training for Intervention Procedures by Servers of Alcohol (TIPS) course. Most
establishments will require such a course.
Large bowling centers or those that have league-sponsored championships may host or sponsor fundraising or special
events where liquor may be served. Visitors are unlikely to consume large quantities of alcoholic beverages as they could at
a permanent bar or restaurant but may be tempted to overindulge at events where consumption of alcohol is more difficult to
monitor. How often does the insured hold parties or benefits where alcoholic beverages are served? Are food and drink
provided by the insured, or are caterers used? If caterers are used, certificates of insurance should be obtained, and the
bowling center should be named as an additional insured on the caterer's policy.
How does the insured monitor alcohol consumption of guests at special events? Does the insured set a limit as to the
amount a patron can be served (e.g., 1 or 2 12-ounce servings) and require proof of age? Proper identification-checking
procedures should be reviewed with employees who will be responsible for serving alcohol at such events. If the insured
hosts such events where alcoholic beverages are served, a Host Liquor Liability policy is recommended. For more
information on exposures and loss control measures involving the serving of alcohol, the underwriter should review the
Liquor Liability section of the Bars, Taverns, Cocktail Lounges, and Nightclubs report.
Workers' Compensation
The Workers' Compensation exposure for bowling centers will be minor. Most injuries will be from slips, falls, cuts,
and back strains. Claims will be frequent rather than severe. Employees also could be cut or bruised if they are struck by a
bowling ball or bowling pin when working near the lanes. Muscle and back strains and sprains from lifting heavy items. If
the insured operates a snack bar or restaurant on site, employees could suffer food preparation-related injuries, such as burns
from hot equipment or food products and cuts and lacerations from sharp knives. Workers at the pro shop and/or in office
areas will face standard retail or office environment injuries.
How many workers does the insured employ, and what are their ages, training, experience, and duties? Most bowling
centers will have on average 17 employees handling various duties. Bowling centers will be staffed by cashiers, who also
will distribute rental shoes, managers/administrative personnel, a snack bar attendant, food prep workers, such as cooks and
wait staff, maintenance personnel, and pro shop retail personnel. Do the insured's employees work full- or part-time? On
average, most workers are full-time employees; however, it is common for bowling centers to employ large numbers of
young workers, many of whom will work part-time on evenings and weekends.
Who is responsible for the training of new workers? Depending on what part of the bowling center they are employed
in and their assigned duties, workers will be trained by different people. For example, retail personnel will be trained by a
supervisor in the pro shop whereas the wait staff will be trained by managers or supervisors in the snack bar or restaurant.
Are less experienced workers paired with more seasoned employees until they have shown an acceptable level of
competence in their assigned tasks. Evaluate the various in-house training programs for different parts of the bowling
center.
What is the layout of the bowling center? In addition to the bowling lanes, there will also be rest rooms, locker areas, a
bar and snack area, a restaurant, a pro shop, a rental area, and possibly an arcade, game room, and/or billiards room.
Lockers can be used by customers to store their possessions while they bowl. Bars and snack areas typically will offer
alcoholic beverages and fast food meals, such as hot dogs, hamburgers, pizza, and french fries. Some bowling centers will
offer full-service restaurants. Most bowling centers will have a pro shop where customers can purchase new bowling balls
and where the balls can be drilled to the exact size of customers' fingers. Rental areas will offer bowling shoes to customers,
sometimes in exchange for the customers' own shoes as a security measure.
What are the insured's hours of operation? The bowling center's operating hours are usually from 10 a.m. until midnight
through the week; closing later (1 or 2 a.m.) on Fridays and Saturdays. The busiest hours will be during the evenings of
league play. Centers that offer cosmic bowling will have large crowds in the evening on weekends, and large numbers will
also be present during daytime hours when children's birthday parties are scheduled.
What is the level of housekeeping on the premises? Slips, trips, and falls will be the most common claims of worker
injury for bowling centers. Dim lighting during special events, worn floor coverings, and poor housekeeping can all
contribute to workers being injured. Good housekeeping is an essential loss control measure. Bowling lanes are themselves
inherently slippery due to the lacquered finish. Are employees instructed to walk down gutters to retrieve stuck bowling
balls and wear the appropriate shoe to lessen slipping hazard?
Bowling and eating areas should be neat and free of debris and clutter. Are common areas between bowling racks
sufficient in width? Aisles, stairways, and hallways should also be free of debris and all bowling equipment (such as
bowling balls) should be stored in the proper location. Electrical and telephone cords should not be stretched across
walkways or doorways. Cords that must cross doorways should be covered with a mat or otherwise secured to the floor.
What is the condition of the insured's floors and floor coverings? Worn, torn, or loose floor coverings should be
repaired or replaced immediately. Floors should be swept, vacuumed, or mopped daily. Does the insured have a policy
prohibiting employees from eating or drinking near alley approaches? Spills should be cleaned up promptly and "Caution –
Wet Floor" signs should be displayed over the affected areas. Is trash removed from the premises on a daily basis? Some
areas of the center will be off limits to personnel unless they are working in that area; for instance, only food preparation
workers should be allowed to enter on-premises kitchens. Are "Authorized Personnel" signs posted at entrances to areas that
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are restricted to some employees? If the insured has stairs on the premises, are they in good condition, treads covered with
nonskid material, and equipped with sturdy handrails?
What is the condition of the insured's furniture and furnishings? Workers can be injured by furniture, such as chairs and
stools that are unsteady or tables or desks that have sharp or pointed edges. All furniture should be sturdy and free from
protruding nails, screws, and splinters. Is furniture periodically inspected so that it can be repaired or replaced as necessary?
Determine who is responsible for the maintenance and repair of the insured's furniture and furnishings. What is that person's
reputation and qualifications?
Electrical shocks from improperly grounded or maintained equipment are another potential hazard to the insured's
employees. Bowling centers will have a number of pieces of electrical equipment on site, such as office equipment, bowling
machinery and equipment (e.g., pin resetters, ball return units, bowling ball polishers) as well as arcade games, vending
machines, and food preparation equipment. What are the number, age, type, and condition of the insured's electrical
equipment? Is all equipment in good repair, NRTL-listed, and properly grounded? Does the insured have a maintenance
plan in place for its electrical equipment? All electrical equipment should be inspected and maintained by a licensed
electrician.
Restaurants, snack bars, and bars on the premises will increased the Workers' Compensation exposure due to the
number of additional hazards employees will face. Employees working around stoves, hot fryers, or other electrical kitchen
equipment may sustain burns. Employees could suffer cuts or lacerations from improperly using sharp knives or from the
sharp edges when opening cans of food. Are appropriate materials-handling equipment provided to employees for moving
beer kegs and other heavy supplies? Proper food service area maintenance helps to prevent slips on spilled food, water, or
grease. For a more detailed discussion on the hazards and loss control measures involved with food preparation or service of
alcoholic beverages, the underwriter should review the Workers' Compensation sections of the Fast Food Restaurants,
Restaurants, and Bars, Taverns, Cocktail Lounges, and Nightclubs reports.
What types of maintenance activities do workers perform? Workers may be required to maintain the bowling
equipment and machinery and repair serviceable problems, such as clearing ball and pin jams. The underwriter should
determine what procedures the insured follows when clearing jammed machines. Does the insured shut down a number of
lanes (or all lanes) for whatever time it takes to clear the jam? Is the US insured in compliance with OSHA standard
1910.147, The Control of Hazardous Energy (Lockout/Tagout)?
Electrical and mechanical work usually is performed by contractors, thus reducing the exposure to employees. Because
pinsetter machines are extremely expensive to repair or replace, as well as mechanically and electronically complicated, it is
highly unlikely that untrained employees would be permitted to repair pinsetters or other electronic machinery. Those
employees who are responsible for repairing such equipment usually are formally trained in technical and safety procedures.
It is extremely important that pinsetters be turned off when being repaired. What controls are in place to prevent the
accidental turning on of equipment while pinsetters are being repaired? Does the machinery have emergency cut-off
switches? Finger and hand injuries are common among mechanics. Simple cuts are the most frequent injuries, but fractures
also occur. Are equipment mechanics employed by the insured, or are independent contractors used? It is a positive
underwriting sign if this service is contracted out.
Determine the types of equipment and tools used by workers to effect repairs. Workers also may be required to clean
and maintain the premises, especially if the insured does not employ a full-time maintenance crew. Although floor
refinishing likely will be contracted out, some bowling centers' employees will be asked to perform such work. This is a
negative underwriting sign. Employees may be exposed to skin and/or respiratory irritations from caustic cleaning and
stripping compounds. A special explosion hazard exists if toluene is used to strip wax from floors and lanes. Toluene is
extremely hazardous and should never be used for wax removal. Exposure to toluene also causes respiratory tract and other
serious irritations. Is the US insured in compliance with OSHA standard 1910.134, Respiratory Protection and 1910.106,
Flammable and Combustible Liquids? What are the types and amounts of cleaning chemicals stored at the bowling center?
For more information on related hazards, see the Workers' Compensation section of the Janitorial Services report.
Have employees been instructed in the proper use and storage of chemicals? All chemicals should be stored separately
in a cool, dry storage place in appropriate containers. Working in enclosed areas, such as storage rooms, may increase the
chances of inhalation or absorption of harmful substances. Proper ventilation is essential. Is the US insured in compliance
with OSHA standard 1910.94, Ventilation? Are all employees provided with and required to wear the proper personal
protective equipment (e.g., gloves, protective clothing, goggles) when working with chemicals? These precautions usually
are prescribed on the product label. Have employees been provided with material safety data sheets (MSDSs)? US insureds
should be in compliance with OSHA standard 1910.1200, Hazard Communication.
Workers in pro shops could suffer injuries from falling over stepstools, merchandise or collapsing shelves, and/or
lifting injuries. Employees could possibly sustain injuries by tripping over a stool, falling over a stool, or falling off a
ladder. For added stability, all stepstools and ladders should have rubber treads, and rubberized feet that sink down when
stepped upon. Is the US insured in compliance with OSHA standards 1910.25, Portable Wood Ladders and 1910.26,
Portable Metal Ladders?
To reduce the possibility of injuries sustained from collapsing shelves and/or toppling merchandise, shelves should be
solidly constructed of steel or hard wood, and items should be neatly arranged. On shelves where materials might slide
because the materials do not reach all the way across, are items secured with bookends to hold them in place? Determine
who is responsible for inspecting the insured's shelves for structural integrity, and how often such inspections are
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conducted. Shelving units should stand level so that leaning on them will not cause them to topple over.
Employees at pro shops could be at risk of back injuries from lifting heavy boxes of supplies and bowling balls. Have
all workers been trained in proper lifting techniques? Employees should also be encouraged to use appropriate
materials-handling equipment (e.g., hand trucks) when necessary, such as moving bowling balls from stockroom to sales
floor. Is the insured in compliance with OSHA standard 1910.176, Handling Materials – General in the US or other
appropriate standard in the country where it is located?
Bowling center employees may find themselves victims of a robbery attempt. Since there may be a small staff spread
out in large center, they could be particularly vulnerable to this threat. Is the bowling center equipped with closed-circuit
video surveillance cameras? If so, this is a positive underwriting signs since the video could assist police in the
identification and apprehension of robbery suspects. Emergency phone numbers should be posted near all cash registers so
that police can be contacted quickly in the event of a robbery. Have workers been instructed on how to conduct themselves
should a robbery occur? Employees should be advised to cooperate with the robber's demands, and any attempts at heroics
should be strongly discouraged. What is the frequency of police patrols in the insured's area?
Does the insured ever host special tournaments, events, or league championships? If so, there will be an increased
number of spectators on the premises at one time. Who is in charge of crowd control during such events – the insured's
employees or a contracted security service? How many guards are typically stationed on the premises, and how many
additional guards are on the premises during special events? For more information on the hazards guards can face and the
appropriate loss controls needed to mitigate their risk, the underwriter should review the Workers' Compensation section of
the Guard and Patrol Services report.
Some administrative personnel will spend much of their time in front of computer terminals to set up customers on
bowling lanes as well as keeping track of employment and accounting records. Employees who perform such tasks will be
susceptible to such repetitive motion injuries (RMIs) as carpal tunnel syndrome. Additionally, employees working with
computer monitors may experience eye fatigue. It is recommended that they look away from the screen frequently to focus
on distant objects and take a 15-minute break every 3 hours. Employers in the United States should follow standard
ANSI/HFES 100-2007, which provides ergonomic design guidelines for visual displays, keyboards, and workstations.
Are first aid kits available throughout the premises? It is a positive underwriting sign if any of the insured's employees
have been trained in CPR or first aid. Is the US insured in compliance with OSHA standard 1910.151, Medical Services and
First Aid?
Crime
Due to a modest amount of cash on hand bowling centers will have a moderate Crime exposure. Purchases as well as
payment for lanes and rental shoes will be made with cash or by credit cards. Centers that have a pro shop on the premises
will have an increased exposure. Employee dishonesty could also be a concern.
What are the average and maximum amounts of cash on the premises daily? Bowling centers will have a modest to
heavy amount of cash on the premises, since a large percentage of payments will be made in cash. Weekends and special
bowling nights (e.g., cosmic bowling, league nights) will see an increase in the amount of cash on the premises. What forms
of payment are accepted by the insured? Most bowling centers will accept cash and credit and debit cards.
Have all employees been trained in proper credit card verification procedures? All checks should be stamped "For
Deposit Only" immediately upon receipt. All cash, credit card receipts, and checks should be stored in a tool-, torch-,
explosive-resistant, NRTL-listed, time-delay safe until they can be deposited. How often are bank deposits made? Are they
made daily at staggered times to avoid suggesting a routine?
Does the bowling center have a pro shop that sells expensive items, such as bowling balls, shoes, and bags? If so, are
they displayed so as to make them difficult to steal? Are customers in the insured's pro shop supervised by an employee at
all times? Is the pro shop located in an enclosed area that can be closed down and locked late at night? Because of the
popularity of the merchandise and the relative ease of concealment, inventory control of items such as shoes and towels is a
consideration. What security measures are in place to protect against theft? To guard against theft, the insured should keep
rental shoes in an enclosed area with restricted access. The rental area should be attended constantly by an employee during
open bowling sessions and locked when not in use. What measures does the insured take for inventory control? The insured
may require patrons to leave their shoes at the counter when renting shoes. What other kinds of theft-prevention measures
does the insured take with rental equipment? Most bowling shoes are marked conspicuously to deter theft. Is this the
insured's practice? How is easily concealed merchandise protected against shoplifting? Are extra security measures
employed if tournaments or other special events are held?
The insured will have an employee dishonesty exposure. Employees could pilfer cash from the register or steal items
from pro shops and/or snack bars. Strict inventory control can help minimize this exposure. Effective training procedures
and good hiring practices are crucial to help reduce losses from employee dishonesty that could manifest itself in terms of
embezzling funds or stealing merchandise or food. Internal theft is a major source for any retail operation. Employees may
successfully defraud the operation by stealing money, merchandise, supplies, and equipment. Employees should be
informed of the management's attitude about enforcing its policies regarding worker theft. Does the insured offer its
employees discounts on merchandise in the pro shop and/or food items at the snack bar?
What is the level of pre-employment screening conducted by the insured? Are work histories and references checked
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on all workers?
Ideally, accounting functions should be handled by more than one person. Are periodic, unannounced audits
conducted?
What is the level of security on the premises? Is the bowling center connected to a central-station alarm monitoring
system? Having closed-circuit surveillance cameras in site is also advisable. Are all doors equipped with double-cylinder,
deadbolt locks? Windows that open should have tamperproof locks in place. Flood lighting around the premises at night is
recommended. Parking lots, sidewalks, and other outdoor premises should be well lit at night. Does the insured hire a
security service to patrol the grounds on nights that the center has late night hours?
What is the location and response time of the nearest police department?
Fire and E.C.: Property
The Fire and E.C.: Property exposure for bowling centers will be significant. Common ignition sources will include
faulty wiring, malfunctioning bowling equipment and kitchen appliances, and possibly smoking. The fire load will be
comprised of wooden, chemically coated bowling lanes, bowling pins and balls, plastic furniture, large number of bowling
shoes on the premises, snack bar and kitchen equipment and supplies, and paper and trash. Centers that have pro shops or
fully stocked bars will have a higher exposure due to the retail inventory of the pro shop and the flammability of alcohol in
the bar. The underwriter should refer to the Fire and E.C.: Property sections of the Restaurants, and Bars, Taverns, Cocktail
Lounges, and Nightclubs reports for information on the specific related hazards and their loss controls.
What are the age, type, and construction of the insured's building(s)? Most bowling centers will be either freestanding
structures or located within a shopping center or strip mall. Determine the hazards, if any, posed by adjacent structures. Are
adjoining occupancies separated by a firewall that extends to the ceiling?
What is the layout of the bowling center? In addition to the bowling lanes, there will also be restrooms, locker areas, a
bar and snack area, a restaurant, a pro shop, rental area, and possibly an arcade, game room, and/or billiards room. Lockers
can be used by customers to store their possessions while they bowl. Bars and snack areas typically will offer alcoholic
beverages and fast food meals, such as hot dogs, hamburgers, pizza, and french fries. Some bowling centers will offer
full-service restaurant meals. Most bowling centers will have a pro shop where customers can purchase new bowling balls
and where the balls can be drilled to the exact size of customers' fingers. Rental areas will offer bowling shoes to customers,
sometimes in exchange for the customers' own shoes as a security measure.
The most common ignition sources for bowling centers will be malfunctioning bowling equipment and machinery,
faulty wiring, and possibly smoking. If there is a snack bar or restaurant with a kitchen on the premises, additional ignition
sources of food preparation equipment, including ovens and deep fryers will be present. What are the age, type, and
condition of the insured's wiring? All wiring should be inspected periodically by a licensed electrician for damage and
fraying. Wiring should also be inspected for worn or torn insulation coverings; sparks and heat from defective or improperly
installed wiring could ignite nearby flammable materials. The electrical load for bowling centers will be heavy. Is the
insured's wiring sufficient to handle the demands put upon it? Is the insured in compliance with NFPA 70, National
Electrical Code?
What are the number, age, type, and condition of all electrical and video/audio equipment? Some bowling centers will
have a game room or vending machines for snacks and beverages, as well as office equipment and computers. Are cords
and wires on all equipment periodically inspected for fraying and cracking? All electrical equipment should be
NRTL-listed, properly grounded, and have double-insulated wiring. The insured should have a routine maintenance plan in
place for all its electrical equipment. What are the experience and qualifications of the person who maintains the insured's
equipment?
Fires are most likely to start in cooking facilities on the premises. In such operations, proper maintenance of equipment
and good housekeeping are essential. Is the cleaning of hoods, ducts, filters, and fans conducted by a qualified outside firm?
The insured should contract with a qualified professional for periodic cleaning of hoods and ducts in a maximum of
six-month intervals. Are metal hoods equipped with noncombustible hood filters and explosion-proof lights? The hazard of
fires in deep-fat fryers can be reduced considerably by thermostatic control of the temperature of the fat; they should be
located well away from combustibles. Are deep-fat fryers and all cooking surfaces covered by exhaust hoods, and do they
contain automatic extinguishing systems? Top-of-the-range fryers that allow a boil over of cooking oil will increase the risk.
Cooking and ventilating equipment must be adequate for the specific grease-producing load.
What are the age, type, and condition of the insured's bowling equipment? Automatic pinsetters use considerable
amounts of electricity and require transformers. If the transformers are located outdoors (which is more desirable), are they
positively grounded, equipped with properly grounded lightning arresters, and guarded against damage by vehicles? If
inside, are they enclosed in vaults? Pinsetters generally are equipped with automatic shutoff systems; therefore, the potential
for a fire starting from overheating is relatively minimal.
What type of finish has been applied to the insured's bowling lanes? Most bowling centers have switched from highly
flammable, lacquer-based lane finishes to nonflammable (wet or dry), vapor-free urethane finishes. Moreover, water and
detergents are used more commonly to clean the lanes. Therefore, what was formerly a great exposure has been reduced
significantly. Nevertheless, it is a positive underwriting sign if an experienced independent contractor resurfaces the lanes,
rather than the insured or its employees.
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What is the insured's smoking policy? If smoking is permitted on the premises, has a smoking area been designated,
and is the area equipped with an adequate number of self-closing, fire-resistant receptacles? In areas where smoking is not
permitted, "No Smoking" signs should be clearly posted. How are smoking policies enforced? If the insured is a
"smoke-free" environment are signs posted at entrances to inform patrons of the policy? An adequate number of
fire-resistant receptacles should be located outside the entrances for smokers to safely extinguish smoking materials before
entering the center.
Although infrequent, a few centers still may refinish bowling pins, which involves brushing the plastic-coated,
wood-core pins with nonflammable urethane or nylon-based finishes. If so, the underwriter should consider this practice
unacceptable. The pin refinishing area should be fire resistant, sprinkler equipped, located in a separate fire division from
the main bowling area, and adequately ventilated. Again, the fire exposure will increase if lacquer-based finishes are used.
The majority of the insured's fire load will include the wooden, chemical-covered lanes, large numbers of cloth and
rubber/plastic bowling shoes; bowling balls, wooden or plastic furniture, stored chemicals, papers and trash. Bowling
centers that serve alcohol will have an increased fire load. Distilled spirits, depending on their alcohol content, may be
flammable. In the event of a fire, the heat generated may either cause the glass bottles full of liquor to explode or plastic
bottles to melt. In either case, the liquor will be released and could help spread the fire. Beverages containing at least 50%
alcohol can pose a fire hazard in confined spaces if ignition sources are present. Vapors are heavier than air, and they may
spread along the ground and collect in low and/or confined spaces, such as basements. Storage areas containing large
quantities of food service stock or alcohol should be located away from potential ignition sources.
Good housekeeping can help reduce this exposure. All areas of the bowling center, including arcades and game rooms,
should be well maintained and free of debris and clutter. Are floors swept or vacuumed daily? Trash should be collected and
removed from the premises daily. Any areas where trash is stored prior to final disposal should be of fire-resistant
construction. What are the types and amounts of flammable substances stored on the premises? The insured may keep
certain chemicals, such as lacquers, thinners, cleaning solvents, pesticides, and cooking oil on site. Are all flammable
substances stored away from potential ignition sources? Is the insured in compliance with NFPA 30, Flammable and
Combustible Liquids Code?
What are the age, type, and condition of the insured's fire detection and suppression equipment? It is recommended that
the insured have an automatic sprinkler system installed throughout the facility, and especially in food preparation areas.
Are smoke detectors located throughout the bowling center? Both the fire detection and suppression systems should be
tested periodically. Annually tagged, Class ABC fire extinguishers should be located throughout the bowling center,
particularly in food preparation and kitchen areas, and should be easily accessible to workers. Have employees been trained
in the use of fire extinguishers and made aware of their location?
Has the insured been involved in any pre-fire planning? Employees should be made aware of all emergency procedures
in the event a fire should occur. How often is the insured's emergency plan practiced and updated?
Determine the location and response time of the nearest fire service. Are emergency numbers displayed prominently
throughout the bowling center? The possibility of toxic smoke being emitted from urethane-coated lanes may hamper
fire-fighting efforts. Has the fire service been notified of the presence of hazardous chemicals?
A moral hazard may exist. The insured's location, reputation, and clientele may affect the overall loss potential. The
key to the success of a bowling operation usually is the ability to attract and maintain a full schedule of league bowling.
Other considerations that could affect profitability are the years of experience the insured has had in bowling center
management and whether other recreational facilities in the area provide direct competition.
Pro shops will have a shoplifting exposure. What procedures or security protocols does the insured have in place to
help deter shoplifting? Does the center have a closed-circuit camera surveillance system in place? If so, this is a positive
underwriting sign. Signs advising customers that they are being watched, as well as reminding them of the store's
prosecution policy for people caught shoplifting, should be clearly posted. For a more detailed discussion on the hazards
and loss control measures the underwriter should review the Fire and E.C.: Property section of the Gift or Souvenir Shops
report.
What are the number, age, type, and condition of the insured's computers? Bowling centers will have a number of
computers for lane management, for controlling extensive lighting systems or bowling systems (e.g., automated pinsetters,
ball return machines, score-keeping equipment) as well as for sales in the pro shop and accounting and employment
information. Most modern centers also are likely to use a computerized tracking system to charge customers based on the
number of games played or time spent bowling. A Loss of Use Endorsement may be recommended if the insured's bowling
center is extensively computerized. It is a positive underwriting sign if the insured has identification numbers permanently
etched on all its computers to aid in their recovery if lost or stolen. Are backup copies of all essential software, as well as
files and records, stored off-premises in an NRTL-listed, fire-resistant safe? Furthermore, the existence of manual backup
systems does not eliminate the need for Loss of Use coverage because they typically are more expensive to operate and tend
to slow down operations.
Business Interruption
The Business Interruption exposure for bowling centers will be moderate. Due to the specialized space requirements
and installed equipment, relocation will be unlikely. Bowling centers are also dependent on its peak season, a loss during
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this time could be financially devastating.
In the event of a loss, would the insured be more likely to repair, rebuild, or relocate the bowling center? What is the
availability of replacement space? Most insureds would choose to repair or rebuild the premises. Are the insured's premises
owned or leased? Due to the highly specialized setup and equipment installation, most bowling centers will operate on
owned property. Moving to a temporary location will not be feasible, since a bowling center requires precisely installed
lanes and machinery. Does the insured have a contingency plan in place prior to a loss?
Could any part of the insured's operations continue while the building underwent repairs? If the insured has a pro shop,
restaurant/snack shop, or arcade on site, it may be possible to keep some income coming in through sales at these
establishments. How much of the insured's annual revenue is generated by any onsite bars or restaurants? A shutdown of
these sections of the bowling center could result in a noticeable loss of income for insureds that rely on these sources of
revenue.
How quickly could the insured repair or replace its damaged equipment and machinery? Damaged or broken equipment
should not be difficult to repair or replace. However, the considerable number of lanes in the larger bowling centers may
make it difficult to replace each pinsetter, ball return, and wooden lane at the same time. A partial, ongoing restoration over
a period of time is more likely. Does the insured rely on an electronic bowling system that resets pins, returns balls, and
keeps score for patrons? Such a system could dramatically improve the bowling center's operations and help to attract
regular patrons. Damage to the system, however, could cause a major business interruption. Is a manual backup system
available?
Where is the bowling center located? An establishment in a mall or shopping center may take longer to reopen than a
freestanding bowling center. Damage to surrounding stores in a shopping center or mall may produce an interruption of the
insured's business. The closing of an anchor store in a shopping center or mall could lead to a serious drop-off in patrons
visiting the insured's bowling center if the center depends heavily on walk-in customers. The insured may wish to consider
Contingent Business Interruption for Leader Locations coverage. Ascertain if there are any similar establishments in the
area. Patrons may find other establishments that they prefer, and the insured's business may be affected long after
renovations have been completed.
Bowling centers are open year round, yet the majority of the insured's business will take place in the winter months. A
loss from a covered peril during the peak season could cause a greater loss of income. A loss during the winter season also
could force the insured to cancel tournaments or other scheduled special events. How dependent is the insured on league
bowling and league tournaments? If the insured were to experience a protracted business interruption, league bowlers may
be forced to relocate to another bowling center. Many league bowlers may not return after the insured's bowling center is
rebuilt and operational again. It is imperative that the insured reopen for business as quickly as possible to prevent the loss
of regular customers, especially league bowlers. The insured may wish to consider Extended Period of Indemnity coverage.
Does the food service constitute a large percentage of the center's income? If so, a fire in the food service area could
cause significant loss. Who supplies the food products prepared and/or sold in the insured's food service area (i.e., snack bar
or restaurant)? Does the insured deal with only one supplier or distributor? If so, Contingent Business Interruption coverage
should be considered.
Does the insured experience a peak season? Although bowling centers are open all year round, patronage generally
peaks from September to June. A loss during this time would be more costly than at other times of year. Approximately
what percentage of the insured's annual revenue comes from operations during the peak season? What would the financial
impact be were the insured to suffer a loss during its peak season?
Inland Marine
Bowling centers will have a slight Inland Marine exposure. If patrons leave their bowling bowls for redrilling or
exchange their shoes for bowling shoes, there may be a Bailee exposure. A Valuable Papers and Records will also exist.
Does the insured require patrons to exchange their personal footwear for bowling shoes? Does it operate a coat or shoe
check? If either (or both) is the case, a Bailee exposure will exist. How do the insured's employees return the correct shoes
to the patrons? Are shoes stored in a numbered shelf or tagged with an identification number that matches to the bowling
shoes being rented? This exposure will be lower if there are coin-operated lockers at the center for patrons to store their
belongings while bowling. The insured will also have an exposure if the customers' bowling balls are in the pro shop's care,
custody, and control. Some centers will have pro shops that will redrill holes. Does the insured offer such services? If so,
how are bowling balls tagged and identified?
Valuable Papers and Records coverage may be appropriate to protect employment and accounting records, as well as
any paperwork if leagues play at the center. Does the insured store duplicates of all essential records in a fire-resistant,
NRTL-listed safe off the premises?
UNDERWRITER'S CHECKLIST
Are signs posted warning customers to stay in control of their bowling balls at all times?
Are food and bar areas neat, well lit, and clean?
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Does the insured inspect and disinfect rental bowling shoes after each use?
Is there a bar on the premises? If so, have all servers been trained in the proper identification procedures for serving
alcohol? What forms of identification are accepted by the insured?
Is there a pro shop on the premises?
Does the insured nonflammable urethane on its lanes?
Is lane resurfacing performed by the insured's employees or by independent contractors?
Does the insured use automatic bowling equipment, such as pinsetters, and ball returns?
Do workers repair and/or maintain the automatic bowling equipment, or is it serviced by independent contractors?
Does the insured host events which may draw large crowds, such as league play or tournaments?
Is the premises comprised of one main fire division, or are there fire walls to slow the spread of fire?
Source: Best's Underwriting Guide, Version 2012
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Copyright © 2012 A.M. Best Company. All Rights Reserved.