Arena insurance costs increase; parking lot shows new territory for all involved

Jul. 9--WILKES-BARRE TWP. -- Annual insurance policies renewed Wednesday by the Luzerne County Convention Center Authority increased by more than $10,000 with the coronavirus driving up the premiums.

During its monthly public meeting at the Mohegan Sun Arena at Casey Plaza, the authority approved renewals of plans for property, general liability, employment practices and itself through directors' and officers' coverage.

The authority's decision to choose a plan with a lower deductible drove up the overall $10,587 cost. But it could pay off in the long run, said Joe Joyce of the Pittston-based Joyce Insurance Group.

Joyce presented the authority with two options from Berkley Assurance Co. for the directors' and officers' coverage and the employment practices liability. One package carried a premium of $14,293 with a $25,000 deductible that the authority would be responsible for. The other had a premium of $15,793 with a $10,000 deductible.

"We thought the option where the additional thousand dollars merited at least us showing you," Joyce said of the higher premium and lower deductible package. The choice was up to the authority board members, he said, adding, "But again, if we do have one claim, it pays for the cost of the insurance."

Last year, the insurance package cost the authority $13,024. "We're starting to see a hardening of the market. The reason is because of COVID," Joyce said. There's been an "uptick" in wrongful termination, sexual harassment and discrimination claims related to layoffs from the coronavirus, he told the board as something to consider when choosing either of the options.

There was no choice in the other coverage presented by Edward Miller of Assured Partners in Plains Township.

"We really didn't get too far when we were marketing the account because of the fact that, just like everything else, in all businesses, the insurance markets are in turmoil," Miller said. "There's no way they can measure their risk. There's no way they can do anything."

Miller noted the upkeep of the arena that opened in 1999 is noticed by insurance companies. "The arena as a whole over the year has always done well for maintenance. That is critical," Miller said.

The board approved the new package with a premium of $154,005 from $146,007 for the policies that expire on Aug. 11.

With the arena closed since March because of the coronavirus and no timetable yet for allowing people back into the venue, the attention's turned outdoors, specifically the parking lot.

The arena will hold a three shows next week, starting with the Come Together community benefit concert for the arts on July 16, the Almost Queen tribute band on the 17th and comedian Jim Gaffigan on the 18th.

Will Beekman, general manager of the arena for ASM Global, acknowledged it's new territory for him, his staff, the public and performers.

"I feel way more comfortable today than I did last month," Beekman said.

All the performances will be live and the audience will be able to see and hear the performances on stage or on high-definition LED screens from their vehicles that will be spaced far enough apart to comply with social distancing guidelines set by the state.

Tickets have been selling, Beekman replied to a question from board member Tom Woods about poor sales.

"I think there's two factors at play. One is people are trying to figure out exactly what it is. And the other thing is, it's general admission so there's really no incentive to buy a week ago, or today," Beekman said.

Another variable is the weather. But the shows will go on, rain or shine.

"We're happy with the way it's trending, certainly. And I think you'll see as we get closer and closer, it starting to pick up a little more," Beekman said.

Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.

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