The price of protection: why waterpark insurance premiums are skyrocketing, and what operators are doing to cope--including four ways to keep premiums in check.

The rumors have been circulating. "I think there were three or four this last year that opted not to open because the cost of doing business was so high," says Franceen Gonzales, corporate director of operations at Golfland Entertainment Centers, based in Mesa, Ariz. "I can't confirm that, but some folks are saying it's not worth being in business."

It's a hushed affair in the waterpark industry. Most owners and operators have heard through various sources that a handful of their colleagues have shut down operations, but no one knows with certainty how many (if any) or why. Yet, the quiet fear is that it may be true, and the culprit--drastically rising insurance ...