Insurer takes the plunge into bungee coverage.

Bungee jumpers defy death by tying elastic cords to their bodies and jumping off crane booms and hot air balloons -- hoping that those cords will stop the fall and send them shooting back skyward.

But a more remarkable feat may be finding someone willing to provide insurance for bungee businesses which charge enthusiasts for each jump.

Enter Swett & Crawford, a Los Angeles-based specialty insurance brokerage which has become one of the first insurance brokerages in the nation to place bungee businesses with insurers.

The company has already insured seven bungee operators, one of which operates in California, said Lori Hunter, vice president and casualty manager for the brokerage's Los Angeles office.

Insuring the companies is no easy task since 1991 was the first year bungee jumping -- an import from Australia and New Zealand -- really caught on in the U.S. For insurance companies, insuring the jumpers is a plunge into the dark.

"I don't think you can (determine the risk) -- you pull a number out of a hat," Hunter said.

That price ranges from $6 to $25 per jump, depending on the number of jumps an operator coordinates. That is a large slice of the profits, considering that operators tend to charge patrons $50 to $75 per jump, Hunter said.

The coverage policyholders receive in return has ranged from $500,000 to $1 million per accident and $500,000 to $3 million in aggregate damages for a policyholder over a year, Hunter said.

Hunter thinks that as the sport grows, so will the market for insurance.

"There will be a bigger market in the U.S.," she said. "The sport was in its infancy stages this year. It will be like para-sailing; people can put up cranes wherever they want to."

Numerous Australian and New Zealand firms, in fact, are moving into the U.S. to set up operations. There are about 40 commercial bungee-jump firms operating in California, said Tom Woodward, president of the North American Bungee Association, which represents commercial operators throughout the country.

Despite interest by California enthusiasts, the Golden State has lagged behind other states because of regulatory concerns.

Triggered by the fatal plunge of a La Mirada bungee instructor in October, state safety engineers began regulating bungee-jumping operations in late November.