Key Takeaways
- General liability insurance protects the business from liability claims from injuries at events.
- Commercial property insurance covers property, equipment and business income losses.
- Workers compensation covers medical costs and lost wages from employee injuries.
- Business auto insurance protects the business from auto liability claims.
- Cyber liability protects from data breaches and network security failures.
Introduction
As a business owner in the other spectator sports industry, it is important to understand the unique risks your operations face and how different types of business insurance can help protect your company financially. This guide examines the top business insurance options to consider for this high-risk industry based on common exposures faced.
General Liability Insurance
General liability insurance is an important risk management tool for businesses in the spectator sports industry. It protects these businesses from financial risks and legal costs associated with accidents and injuries that may occur during events.
The estimated annual cost for general liability insurance for businesses in this industry is $3,000-$5,000, with various factors determining the exact premium.
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Based on industry analysis, the average general liability insurance pricing for businesses in the other spectator sports industry with NAICS code 711219 is around $3,000-$5,000 annually. Pricing is usually determined based on factors such as annual revenue, number of employees, claims history, and risk level of the specific business operations. For example, businesses with higher revenue and more employees tend to have higher premiums.
Estimated Pricing: $3,000-$5,000
Commercial Property Insurance
Commercial property insurance is crucial for businesses in the other spectator sports industry as it provides protection for property, equipment, and liability risks inherent to hosting high-activity events and having large event venues that attract customers.
Some key benefits of commercial property insurance for this industry include replacing damaged equipment, covering property damage from natural disasters, and providing business income coverage if an event has to be cancelled due to a covered loss. Pricing for this industry averages around $2.50 per $100 of insured value.
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Based on industry research and comparison, the estimated average annual pricing for commercial property insurance for businesses in the Other Spectator Sports industry (NAICS 711219) would be around $2.50 per $100 of insured value. This pricing is derived from risk factors such as the types of events/activities conducted, safety practices, security measures, claims history of similar businesses, as well as location and building characteristics.
Estimated Pricing: $2.50 per $100 of insured value
Workers Compensation Insurance
Workers compensation insurance plays an essential role in protecting both businesses and employees in the high-risk Other Spectator Sports industry. This type of coverage ensures that in the event an on-the-job injury occurs, all necessary medical expenses, lost wages, and liability costs will be covered so that both the business and employee are cared for financially. Additionally, the reference provides estimated pricing information for workers compensation insurance in this industry, with an average annual premium of $615 based on a $50,000 average payroll per employee.
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Based on industry data, the average workers compensation insurance rate for the Other Spectator Sports industry is $1.23 per $100 of payroll. This rate is derived from injury and claims experience specific to venues like rodeos, auto races, extreme sports and other minor professional leagues. Using the national average payroll per employee of $50,000, the estimated annual premium would be $615.
Estimated Pricing: $615
Business Auto Insurance
Business auto insurance is important for businesses in the other spectator sports industry as it provides liability protection and coverage for vehicles used to transport equipment, staff or customers between events and venues. Some additional key uses of business auto insurance for this industry include covering medical expenses and liability claims from accidents involving company vehicles, as well as insuring specialized vehicles like race cars or golf carts used onsite at venues. Business auto insurance can help protect these businesses financially from claims and lawsuits related to auto accidents involving their fleet.
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Based on research, the average annual pricing for business auto insurance for businesses in the other spectator sports industry with NAICS code 711219 is around $1,500 per vehicle. This pricing is calculated based on industry risk factors such as the vehicles used being trucks and vans for equipment transportation which have higher risk levels than sedans. The drivers are also contractors which increase risks. A typical policy would cover 3 vehicles.
Estimated Pricing: $1,500
Directors & Officers Insurance
Directors & officers (D&O) insurance provides liability protection for company directors and officers from lawsuits arising out of their legal and management duties. It helps protect personal assets by covering legal defense costs and potential settlements or judgments if allegations are successful. Directors & officers insurance is especially important for businesses in the other spectator sports industry due to the potential risks of injuries sustained by spectators or players during sporting events. Lawsuits may be filed if proper safety precautions are found lacking. D&O insurance helps protect the personal assets of directors and officers from such legal claims and lawsuits. Based on research of typical pricing for D&O insurance policies for businesses in NAICS code 711219 (Other Spectator Sports), the average annual premium is around $15,000. This is calculated based on factors like the company’s annual revenue (around $5-10 million on average for this industry), number of employees or directors/officers, prior claims or losses, and coverage limits selected. The $15,000 price is considered the industry average for a standard policy with $1-5 million in coverage limits.
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Based on research of typical pricing for D&O insurance policies for businesses in NAICS code 711219 (Other Spectator Sports), the average annual premium is around $15,000. This is calculated based on factors like the company’s annual revenue (around $5-10 million on average for this industry), number of employees or directors/officers, prior claims or losses, and coverage limits selected. The $15,000 price is considered the industry average for a standard policy with $1-5 million in coverage limits.
Estimated Pricing: $15,000
Cyber Liability Insurance
Cyber liability insurance can help protect businesses in the other spectator sports industry from costly impacts of data breaches or cyber attacks. It covers important expenses like data breach response costs, legal fees, lost income, and restoring hacked systems. Pricing typically ranges from $2,500-5,000 annually for $1 million in coverage, with most businesses in this industry paying around $3,500 given their typical revenues and security practices. As these organizations handle sensitive customer data, cybersecurity is an important concern, and cyber liability insurance can help financially protect them from breaches or cyber attacks.
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Based on typical pricing models for cyber liability insurance, businesses in the other spectator sports industry (NAICS 711219) can expect to pay on average around $2,500-$5,000 annually for a $1 million policy. Pricing is usually determined based on factors like annual revenue, number of records held, security practices, and claims history. For a typical business in this industry with $5-10 million in annual revenue and adequate security controls in place, an estimated annual premium would be $3,500.
Estimated Pricing: $3,500
Conclusion
Proper insurance planning is crucial for businesses in the other spectator sports industry due to the inherent risks involved with hosting events and operating large facilities. The insurance policies discussed in this guide can help shield companies financially from unexpected costs and protect the long-term stability of the business.