Blaming rising insurance costs Albany Indoor Adventures facility closes its doors

An indoor gym and rock-climbing business in the city of Albany in Western Australia is to close - reportedly as a result of no longer being able to secure appropriate liability insurance cover for its indoor ‘ninja’ obstacle course.

As reported by ABC Great Southern, despite making no insurance claims in the four years it has been trading, as well as boasting a clean safety record, James McLean, the owner of Albany Indoor Adventures, has been unable to secure insurance cover for the business.

Cited as the latest example of an attractions and recreation industry operator facing challenges in securing and maintaining insurance cover, the matter came as a shock given to McLean given his facility’s safety track record.

McLean advised “we have operated for nearly four years now and without any major incident. No official claims, we've had a couple of rolled ankles, so we didn't expect any problem."

As well as the ninja obstacle course, Albany Indoor Adventures features bouldering, an adventure playground, archery and mini golf, with McLean explaining that it would be financially unviable without the obstacle course, which generates about a third of its revenue.

He noted “it's sad. There has been a huge affection for the business.

"We've done over 600 kids birthday parties here and after school ninja classes, climbing classes and countless schools from all over the state. The place is going to be missed."

McClean said the business was given three months' notice that the liability insurance cover for the course would not be continued, during which time they approached five different brokers.

He explained that the response he received “was either a flat 'No' - we're talking right through the Lloyds of London — or conditions so onerous, like doubling staff numbers, for a small operation like us is just not viable."

The Insurance Council of Australia (ICA) said it had been particularly tough for the attractions - along with caravan parks, community events and pubs - to secure public liability insurance.

An ICA spokesperson told the ABC “in the past three years the few insurers underwriting this sector have been reassessing their involvement in these markets, globally and locally, and have either exited or significantly reduced their involvement.”

Mclean also owns South Coast Nature Play, which has not been impacted.

Images: Features at Albany Indoor Adventures, including the ninja obstacle course (below). Credit: Albany Indoor Adventures.