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1950-51 Theatre Catalog, 9th Edition, Page 261 (241)

1950-51 Theatre Catalog, 9th Edition
1950-51 Theatre Catalog
1950-51 Theatre Catalog, 9th Edition, Page 261
Page 261

1950-51 Theatre Catalog, 9th Edition, Page 261

see that he is properly covered for his locality.


The location of the average drive-in theatre makes it easy prey for the burglar or sneak-thief. Usually located on the outskirts of police protection and encompassing a large area which is practically deserted during the greater portion of the day, the outdoor theatre presents many unique questions to those who seek to eliminate loss of funds or equipment from the operation enclosures. Only too often, tttrusted" employees are the parties responsible for the disappearance of the assets.

A few short years ago, the insurance carriers were willing to afford only meager protection to the drive-in operators who were interested in burglary, theft, and dishonesty coverage. Today, the picture has changed, and more companies are inclined to write comprehensive policies which include all of the needed coverages under one contract.

The most important phase of this comprehensive policy is the one that deals with the bonding of employees. There are several forms of this coverage, the most important being the Primary Commercial Blanket form and the Blanket Position Bond. We show a perference to one form of these two important coverages. However, there have been circumstances where we recommended the other as more suitable to the particular case. Care should be taken not to underestimate the amount of coverage needed because many dishonesty losses are weeks or even months "in the making" before they are discovered.

Other considerations under these policies are the Broad Form Money and Securities Protection, Safe Deposit Box Coverage, Mercantile Open Stock Burglary and Theft, and Payroll Insurance. There are other forms of coverage

THE ACCIDENTAL POTENTIAL inherent in a drive-in theatre can best be understood by a thoughtful consideration of this interesting photograph taken irom the top of the screen tower at the Keno Family Drive-In. Kenosha, Wisconsin. All cars were asked to turn on their lights during the inter 1950-51 THEATRE CATALOG

included in this policy, such as Depositors Forgery and Incoming Check Forgery, but they are rarely needed in the drive-in trade. '

There is such a wide divergence of burglary rates throughout the United States, depending on location, police protection, and incidence of loss in a particular area, that it is impossible to estimate the cost of the foregoing protection in an article as general as this. The use of burglar-proof safes, approved alarm systems, night watchmen, and many other burglar-foiling devices make the drive-in more desirable to the insurance carrier and have the added feature of materially reducing rates.

Special All-Risk

There are several all-risk coverages available to the drive-in operator today. Most important of these are the Neon Sign Floater and the Movable Equipment Floaters. Expensive Neon and Electrical Signs may be insured for a rate of approximately 3%% against all direct loss or damage however caused, with a few minor exceptions. This type of insurance may also be procured for some types of movable equipment such as lenses.


The need for rain insurance is not very great, yet this type of insurance is available for the prudent operator who may be seeking to protect a tibig nightll against a washout. There are two types of rain contracts issuedethe first, or Form A, is written on a 100% basis, which means that the operator must carry a policy for 100% of his anticipated income. The policy covers a period of at least three hours, during which time 1/20 or 1/10 inch of rain must fall, depending on the conditions of the contract. The insured selects the three hours he wants covered, and all readings are

taken at the nearest U. S. weather station. A typical rate for this insurance in the New York metropolitan area during the month of September would be 8% for 1/10 inch and 10.4% for 1/20 inch.

Form D rain policy is issued in an amount not to exceed 60% of the gross income for similar previous exhibitions. All other conditions follow the general outline of Form A, and comparable rates would be 10% for 1/10 inch and 13% for 1/20 inch. Form D is a more ilexible contract and would be the more desirable type in most instances.


Personal insurance for operators, such as Partnerships, Sole Proprietor, or Key Man Life insurance and Accident and Health policies, constitute a field of their own, and no attempt will be made to discuss them here.

Conclusion and Summary

This article is intended only as a general guide to the various coverages that are available to the drive-in operator, but care should be taken that each theatre is discussed as an individual problem with a competent broker or agent because the constant desire for something new and the very individuality of each owner, as expressed in the plan and operation of his theatre, forbids the use of a hard and fast rule for surveying drive-in needs. Savings can also be effected on premiums paid under a group drive-in plan.

Even as this article is published, the succe5s 0f the ttKiddie-Lands" now run in conjunction with drive-ins warns us that we will be faced with a new insurance problem in the very near future.

It is not difficult or complicated to write an insurance policy and to pay the premium. The two important items are to write the correct policy with the proper endorsements and then to be properly reimbursed when a loss occurs.

mission and a tour-minute time exposure was made. On a crowded night. as the last scene fades, this exact condition exists, and without marked roadsides 500 to 1000 cars switch on their headlights and start a iam tor the exits. This is one need for proper insurance coverage.
1950-51 Theatre Catalog, 9th Edition, Page 261