K&K Insurance : Everything you need to know

K&K Insurance: Everything you need to know

Founded in the US: 1952
Founded in Canada: 1990
Business written by brokers: Over 95%
Industries of focus: Sports, leisure, and entertainment

K&K Insurance has been providing coverage for the sports, leisure, recreation, entertainment, and motorsports industries since 1952. It has operations in both Canada and the US, with K&K Insurance Brokers Canada being a wholly owned subsidiary of K&K Insurance Group. The Canadian outpost was launched in 1990, when there was strong demand for insurance products and underwriting expertise in the world of sports, leisure, and entertainment in the country.

K&K Canada is a managing general agent (MGA) that works with several insurance companies. The company offers insurance programs focused on sports teams, leagues and associations, racing activities, and general sports competitions, as well as leisure activities, such as mountaineering and camping, and entertainment activities, including gambling, bingo, fairs, festivals and other special events and activities. According to the company, “If it is fun, we probably insure it.”

K&K is licensed to do business across Canada, in all provinces and territories. Its offices are located in Mississauga and Vancouver.

Risks that K&K writes
Within the industries that K&K specializes, the MGA offers a variety of coverages, such as general liability with property, crime, liquor and participant accident. Its programs cover a wide range of offshoots in its industries of focus, including gaming, camps, whitewater rafting, arenas and stadiums, to name a select few.

Over 95% of the business that K&K writes is brought to the MGA by brokers. Only when it comes to motorsports does the company consider working directly with the insured.

Around the track
The founders of K&K, Nord and Teddi Krauskopf, started the company in 1952, when they decided to create a benevolent fund that would offer accident medical benefits to injured race car drivers. Being enthusiasts, Nord and Teddi already had a clear understanding of the types of risks associated with motorsport racing, which allowed them to grow their operation by designing and bringing to the market many specialty products that would benefit all aspects of the motorsport industry, from racetrack facilities to promoters, sanction organizations to race teams.

In the 1960s and 1970s, the Krauskopfs and K&K were involved in several racing activities as a team owner/sponsor. Nord’s dedication landed him in the winners’ circle many times, winning NASCAR’s Grand National Championship in 1970, attaining 28 land speed records at the Bonneville Salt Flats, many of which still stand today, and setting a closed-course world speed record in 1971 that would remain the best in this class for over 13 years.

While K&K is not involved in motorsports as a car owner or sponsor today, the company still holds the title as the largest single provider of motorsports insurance in the industry.

Goat yoga, rollercoasters, pandas, oh my!
K&K’s experts in Canada have a lot of knowledge to pass on to insurance professionals. When Insurance Business came to the MGA for insight on how to approach insuring risks associated with an activity like goat yoga, K&K had all the answers.

“Yoga has really exploded in Canada in terms of popularity, and it’s really venturing into different spaces. This year we wrote a few policies for goat yoga, which was one of the more interesting requests,” said Kevin Dannemann, vice president and general manager of K&K Insurance Canada.  “We write yoga on a regular basis, so the exposure itself isn’t that much of an issue. But when you add in little animals, you have to look at the risk in a different way.

“At K&K Insurance Canada, we don’t provide coverage for the goats, but we do recognize the extra exposure linked with having an animal present. In general, goats are fairly tame, but there could be an injury as a result of doing yoga in the presence of goats, so we incorporate that in terms of the exposure, pricing and making sure there are valid waivers in place.”

Wonderland’s rides for thrill-seekers also bring their own set of insurance challenges, even if they’re actually safer than people expect.

“A lot of people think the rides are the greatest exposures at big amusement parks, but they’re actually probably one of the safest things you could be doing. Rides like the Yukon Striker have to meet the rules and regulations set out by the Technical Standards and Safety Authority (TSSA), and parks have to follow the maintenance and inspection recommendations of the ride manufacturer,” Dannemann told Insurance Business. “They’re generally very safe and secure in terms of how they’re operated, as long as the manufacturer’s guidelines are being followed.”

Finally, the Toronto Zoo’s popular panda pen or any of its animal attractions require a unique and carefully honed insurance program. K&K has the expertise to get parks like this insured.

“We rate our liability policy on annual attendance, so at the end of the year, we’ll adjust the policy to reflect the increased exposure, if there were more patrons attending that year,” said Dannemann. “For new attractions, we would sometimes, depending on what it is, ask about increased security or increased medical staffing needs.”