Key Takeaways
- General liability insurance protects against claims from customers or third parties.
- Property insurance covers costs of repairs, rebuilding from fires, floods and other property damage.
- Cyber liability insurance protects against losses from data breaches and cyber attacks.
- Commercial crime insurance reimburses losses from employee theft, robbery, fraud or burglary.
- EPLI protects against employment lawsuits related to discrimination, harassment and wrongful termination.
- Directors and officers insurance covers legal defense costs if directors/officers are personally sued.
- Commercial auto insurance provides liability protection in case of vehicle accidents.
- Workers comp covers medical costs and lost wages if employees are injured on the job.
Introduction
Businesses operating in the gambling industries under NAICS Code 7132, which includes casinos, lotteries, racing operators and other gaming businesses, face unique risks that most other industries do not. These risks stem from large amounts of cash kept on premises, sensitive customer data handled, large customer and employee volumes, and the litigious nature of the industries. This article discusses the essential business insurance options these types of companies should consider to properly manage risk and protect their operations.
General Liability Insurance
General liability insurance provides crucial protection for businesses in the gambling industries from a variety of liability risks. It covers legal costs and claims that may arise from accidents, injuries, property damage and other incidents related to business operations. Some key benefits of general liability insurance for these types of businesses include defending against claims of errors and omissions, covering bodily injuries or property damage from third parties, and protection from lawsuits related to underage gambling, problem gambling impacts, or slip and fall accidents on premises.
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Based on research of average rates for general liability insurance policies for businesses in the gambling industries (NAICS code 7132), the estimated annual premium price is $3,000 – $5,000. This price range was determined by analyzing rate quotes from multiple insurers for casinos, lottery vendors, and other gambling businesses of various sizes, property values, and risk factors. The final price would depend on specifics of the individual business’s operations and claims history.
Estimated Pricing: $3,000 – $5,000
Property Insurance
Property insurance provides vital protection for businesses in the gambling industries like casinos and racetracks by covering costs of repairs, rebuilding, lost income, and liability claims after insured damage to structures and property occurs. Some key benefits of property insurance for these types of businesses include covering property losses and damages from fires, theft, storms and other hazards; protecting income if repairs are needed after damage closes the business temporarily; and replacement value coverage to fully repair or rebuild after total losses. Average annual property insurance pricing for high risk industries like gambling establishments is around $5 per $100 of insurable property value.
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Based on research and analysis of average property insurance pricing for similar high risk industries such as casinos and other gambling establishments, the estimated average annual property insurance pricing is around $5.00 per $100 of insurable value. This pricing was derived based on industry reports and considering factors like risk of property damage/theft.
Estimated Pricing: $5.00/$100 insurable value
Cyber Liability Insurance
As a business in the gambling industries handling sensitive customer data, cyber liability insurance provides important protection from the financial risks of data breaches and cyber attacks. It ensures coverage for costs associated with responding to incidents, as well as resulting fines, lawsuits, and lost income that could seriously harm your business operations and reputation. The reference provided details on the key benefits, common use cases, and estimated pricing for cyber liability insurance for businesses in this industry handling large amounts of customer payment and personal information electronically. Common risks faced include data breaches, network security failures, losses from fraud, and regulatory fines. An average small to medium sized business in this industry can expect to pay around $7,500 annually for cyber liability coverage.
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Based on typical pricing structures for cyber liability insurance and risk factors for businesses in the gambling industries, the estimated average annual pricing would be around $5,000 – $10,000 per year. Factors like revenue size, number of customer records, security protocols, prior cyber incidents would impact the actual pricing. For an average small to medium sized business in this industry, assuming $10M in annual revenue and possession of at least 50,000 customer records, the estimated pricing would be around $7,500 per year.
Estimated Pricing: $7,500
Commercial Crime Insurance
Commercial crime insurance provides important financial protection for businesses in the gambling industry as they deal with large amounts of cash daily and are at risk of internal and external theft, fraud, and robberies due to the nature of their operations. Some key benefits of commercial crime insurance for gambling businesses include reimbursing legal fees and investigation costs from incidents, protecting from risks related to money handling and inventory shrinkage, and covering losses from employee theft, robbery, fraud or burglary. Common risks gambling businesses face that commercial crime insurance can help protect against include employee theft of cash/chips, robbery of cash from locations on premises, computer/funds transfer fraud, and forgery/alteration of checks/counterfeit chips. Estimated average annual premiums for commercial crime insurance for gambling businesses are around $3.50 per $100 of payroll with a minimum of $1,500.
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Based on typical pricing patterns for businesses in the gambling industry, we estimate the average annual premium for commercial crime insurance is around $3.50 per $100 of payroll, with a minimum premium of $1,500. Premiums are derived based on payroll and loss history as gambling businesses face risks of theft of cash and valuables on the premises.
Estimated Pricing: $3.50/$100 payroll, minimum $1,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important insurance coverage for businesses in the gambling industries due to the associated risks of employment-related claims and lawsuits. EPLI protects these businesses from financial losses due to legal costs and damages from allegations involving discrimination, harassment, wrongful termination and other employment law violations. EPLI also provides access to experienced labor and employment law attorneys to help prevent issues and respond to complaints. Common claims in the gambling industries that EPLI covers include wrongful termination, harassment, discrimination, and wage/hour disputes due to the large number of employees in these service-based industries.
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After analyzing typical risk factors for businesses in the gambling industries with NAICS code 7132, which includes casinos, lotteries and horse and dog racing tracks, the estimated average annual premium for Employment Practices Liability Insurance would be around $5,000. This pricing is derived based on average payroll and number of employees at such businesses, as well as common allegations and litigation trends around issues like discrimination, harassment, wrongful termination that are more prevalent in the service industries.
Estimated Pricing: $5,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides essential coverage for businesses in the gambling industries to protect company leadership from regulatory investigations and shareholder lawsuits that could pose significant financial and legal risks.
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Based on research, the average pricing for Directors And Officers Liability Insurance for businesses in the gambling industries with NAICS Code 7132 is around $25,000 – $35,000 per year. This pricing is estimated based on the high risk nature of the gambling business and potential lawsuits from customers. The pricing also varies depending on the size of the business, number of locations, annual revenue, claims history, and other risk factors.
Estimated Pricing: $25,000 – $35,000
Commercial Auto Insurance
Commercial auto insurance offers essential protection for businesses in the gambling industries like casinos that rely on vehicles to transport customers and staff. It provides liability coverage in the event of accidents as well as payment for repairs or replacing damaged vehicles. Some key benefits of commercial auto insurance for these types of businesses include coverage for hired and non-owned vehicles used for business purposes and the ability to customize policies with different deductible options to fit various budgets. Estimated annual pricing for commercial auto insurance specifically targeting businesses in the gambling industries is around $2,500 per vehicle.
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Based on average industry data, the estimated annual pricing for commercial auto insurance for businesses in the gambling industries with NAICS code 7132 is around $2,500 per vehicle. This price was derived from considering factors such as the risks associated with passenger vehicles transporting customers and employees as well as higher risk of accidents during operations.
Estimated Pricing: $2,500
Workers Compensation Insurance
Workers’ compensation insurance is an important type of coverage for businesses operating in gambling industries under NAICS code 7132. It provides critical financial protections for both employers and employees in the event of work-related injuries. The top benefits of workers’ compensation insurance for these businesses include covering medical expenses and lost wages due to injuries sustained on the job. It also protects businesses from expensive lawsuits if employees are hurt and try to sue. Additionally, the top use cases where injuries are common in gambling industries include slips, trips and falls as well as repetitive strain from tasks like cash handling. The average estimated pricing also provides useful context for businesses to understand their potential costs.
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Based on industry data and risk factors, the average estimated pricing for workers compensation insurance for businesses in the gambling industries with NAICS code 7132 is $2.50 per $100 of payroll. This rate was derived considering injury rates for casinos and other gambling industries tend to be higher than average due to repetitive motions and potential violent altercations.
Estimated Pricing: $2.50/$100 of payroll
Conclusion
In summary, given the high risks inherent to industries like casinos, lotteries and race tracks, maintaining comprehensive insurance coverage tailored to their exposures is critical. The business insurance options discussed provide financial protection and peace of mind knowing costs from unforeseen events like property damage, data breaches, lawsuits and injuries will be covered. Proper due diligence in understanding coverage needs and selecting the right policies is important for businesses in gambling industries to mitigate risks and uncertainties that could threaten continuity of operations.