Full Disclosure is a good thing. The only issue is when you ask someone to do it they get pissed!

We are getting a little flack from the competition for the previous notices that were sent out. It appears that the truth is painful to some people. Boy, I would love to have a debate like the Presidential debates where we could just put it all on the table! Boy would the paintball industry be upset...

Ok, the biggest question we are receiving from over 200 fields in just the last week is this:

How can you bring field insurance to us that costs so much less?

First we do not charge association dues, especially when the association is not acting as a true association or the association does not exist. In all other industries the association provides services, training, discounts, and then is associated with an insurance agency that may provide a group insurance program. Only in the paintball industry have they been able to get away with charging association dues to access a program that is not "their" program. And the funny thing is that this "program" is something that any field owner can go direct and purchase without paying these so call association dues.

In paintball the associations provide discounts with fantastic companies that are very useful to the paintball community like FTD, Choice Hotels and Hertz. Unfortunately when you call these companies and ask for your "association discount" they do not know these associations. Hmmm.

Ok, let's look at why the competition is so upset and why you should be also. There is only one reason, and that reason is bunch of money. Let's do the math.

MIC is one of the brokerage houses that underwrites all accounts for Apl and Nsera, MIC is the one that has the actual association liability policy that the paintball industry uses. So of course MIC charges $150 association dues for access to that policy. So understand that every paintball field insured with Nsera or Apl that MIC issues, MIC gets $150. The accident medical policy has a $100 "administration fee" tacked also on by MIC. So for each policy MIC gets $250. About 700 fields are insured times $250 = $175,000 in fee income, not to count the commission...... Yeah they are pissed.

Now understand that both Apl and Nsera claim that this is THEIR program and that you have to pay the association dues to access it. But you can go direct to MIC and purchase the same association program that MIC sells to these guys but without the Apl and Nsera dues.... So everyone is paying double dues. Only in paintball... Probably not legal either.

Ok, let's look at the next level of fees you are paying. We will use estimated numbers since no body has ever received a bill from any association for just association dues. Who knows how much you are being charged!

Now lets assume that Apl and Nsera are charging from $300-400 association dues. Apl only has about 50 fields at $300 which is $50,000 in association dues income, but at least he has filed the Apl as a corporation and it actually exists. Now Nsera, does not exist with the Secretary of State in SC, hmmm. Ok now they say they insure 800 fields, so let's just do the discounted amount of 700-50=650 fields that they insure. That is 600 X $300 (lower amount) which equals $195,000 in so called association dues income for an association that does not exist. Sounds like a class action suit to me just waiting. Yeah they are pissed.

Bottom line, each field owner is paying an estimated minimum of $550 in association dues and fees, and they ask what they get for that money. Sorry, there are no answers you want to hear about... Oh yeah, last year if you renewed early you got a banner from one association, and the other association gives you a cd on how paintballs are made. Oh yeah, I forgot, the numbers above are estimates only, actual numbers may be higher. And, this is not counting the commission paid which should be approximately the same numbers...... Yeah, they are pissed.

Second, we are a full service insurance agency and work with over 50 companies providing specialty insurance to several different niche markets, one of them is paintball. I designed a new program for paintball fields that took AIG 4 years to decide to come on board. Since they are the largest insurance company with probably the most financial strength of any insurance company in the USA they are probably the strongest insurer in the paintball industry. They have been insuring paintball fields since 2001 so they know what they are insuring. We only work with A+ rated insurance carriers which are financially sound. The field program that we write with Lexington Insurance, part of the AIG group is also rated A+. We work directly with the company so we do not have the levels of people in between you and the insurance company adding their so called association dues. We also write with Riverport Insurance, another A+ rated company, part of the Berkley Group. No slouch in the insurance industry. We do use a brokerage house for this program but there are no association dues.

Once again, the company that underwrites the competition's policy is Philadelphia, another great A+ rated carrier providing excellent coverage.

Our products that we bring to the table are different in nature with the underwriting guidelines and pricing. Now you might see the competition deciding that they want to change their position and guidelines on what they will cover. Such changes are they only allowed semi auto mode on their application last year. Now they consider other modes like we do and surcharge for them. Hmmm.

Another issue that field owners have complained about is that the competition no longer accepts barrel plugs as an acceptable form of a safe barrel blocking device, per their safety rules. This basically leaves barrel condoms or socks as the only product that they will allow on their insured fields. Wow! Since the barrel condom is the product I invented in 2000 it is funny that they are the only ones requiring it. For the record, Larry Cossio has never required barrel condoms on any insurance program that I have been affiliated with, even though I was accused of it. Field owners on their own, without too much pressure have found out that barrel condoms are the best safety device for accidental discharges. I still make them and sell thousands so I obviously believe in them!!! Now this brings me to a very important part that Mike Ratko brought up in 2001, with the hundreds of thousand barrel plugs that are in the market, and with all the manufacturers that are still including barrel plugs in new gun packages, we can not require just barrel condoms as the only approved safety device. This is not fair to field owners or players to impose this as a regulation, even though a barrel condom is much safer. Now most field owners require it now, I am happy with that as I sell more! Free enterprise is great!!

Many field owners that we have given quotes to have called us back stating that the associations have been calling them back and offering huge discounts. Unfortunately those discounts are not able to get close to the pricing of our program. So when the field owners make a much better business decision in 2008 now that that they finally have a choice of a different insurance carrier after 5 years with better coverages and better rates with no association dues, these so called associations are going to have financial shortages. I believe that I will be called some new names in 2008, and that I probably will not be receiving any Christmas cards from any associations this year, probably no banners or cd's either... oh darn...

Just received a call from a field owner in North Carolina that was notified via email that if he chooses to allow tanks on his field that they will not insure his field any longer. We do not have this challenge with our program.

If you have any questions or concerns you may call me or email me directly. My number is 864-688-0121 ext. 100 and my email is larry@cossioinsurance.com. If you want a quickie quote on how much we can save you call our office. If you want the full official written quote please complete our online application at www.paintballinsurance.com.

My name is Larry Cossio and I approve this message...