Key Takeaways
- General liability insurance protects against visitor injury claims.
- Property insurance covers buildings, vehicles, equipment from losses.
- Workers’ compensation covers medical costs for job-related injuries.
- Business interruption insurance covers revenue losses during closures.
- Auto insurance protects vehicles used to transport animals and staff.
- Cyber liability covers costs from data breaches and network attacks.
Introduction
Zoos and botanical gardens face various risks to their operations and need adequate insurance. This guide covers the essential types of coverage these businesses should consider like general liability, property, auto and more. Proper insurance protects the financial health of the organization and ensures it can continue serving the community in the event of losses.
General Liability Insurance
General liability insurance provides essential coverage for zoos and botanical gardens to protect their business from financial losses due to accidents and injuries occurring on the premises. It covers costs associated with visitor claims related to slips, trips and falls as well as incidents involving animal interactions or exhibits. An additional benefit is that it covers legal fees if the business is sued for incidents outside of their control, and protects the business from unexpected large claims with an annual estimated premium of $12,000 – $15,000.
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Based on average pricing data for general liability insurance for businesses in the zoos and botanical gardens industry (NAICS 712130), the estimated annual premium is around $12,000 – $15,000. Premium is calculated based on factors like number of employees, annual revenue, number of visitors annually, number and types of animal exhibits/collections, safety practices and protocols, number of claims/losses in past years.
Estimated Pricing: $12,000 – $15,000
Property Insurance
Property insurance provides critical protection for zoos and botanical gardens against unexpected losses of their buildings, animal collections, vehicles, and equipment due to disasters, damage or theft. It ensures the business can continue operating and replace damaged items after a covered loss occurs. The top benefits of property insurance for zoos include protection against property damage and loss from disasters, reimbursement for repair/replacement costs, liability coverage if someone is injured, and coverage for facilities, collections, fences and more. The key uses of property insurance are to provide coverage for buildings, animal enclosures, equipment, vehicles as well as loss of income if the property is damaged. Typically zoos and botanical gardens may expect to pay around $30,000 annually for adequate property insurance based on their property values and risks.
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Based on average property values and risks associated with zoos and botanical gardens, the estimated average annual pricing for property insurance would be around $30,000 per year. Factors that influence this pricing include the size and value of buildings and structures, number and types of animals, security measures, fire protection systems, and claims history.
Estimated Pricing: $30,000
Workers Compensation Insurance
Workers compensation insurance provides crucial benefits and financial protections for employees and employers in the zoos and botanical gardens industry. It covers costs associated with work-related injuries, illnesses and deaths so businesses in this sector can care for injured workers without facing financial hardship. The estimated average annual cost for a business in this industry is around $3.50 per $100 of payroll based on general risks like animal attacks, outdoor hazards, and lifting injuries as well as average claim costs.
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Based on overall industry risks and average claim costs, the estimated average annual pricing for workers compensation insurance for businesses in the Zoos and Botanical Gardens industry with NAICS Code 712130 is around $3.50 per $100 of payroll. This pricing takes into account factors like the risk of animal bites/attacks, slips/trips/falls in outdoor/uneven terrain, heavy lifting injuries, exposure to plant/wildlife toxins, as well as average claim severity for this type of industry. The pricing was derived from analyzing published industry data and insurance rates over time for similar business classifications.
Estimated Pricing: $3.50 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides an important layer of protection for zoos and botanical gardens. It helps ensure financial stability and continuity of operations if disruptive events occur that impact business revenue or force temporary closures.
The top benefits of business interruption insurance for zoos and botanical gardens include coverage for losses of income during shutdowns, extra expenses to continue operations, and protection against a wide range of events from natural disasters to accidents that could damage facilities or force evacuations. Pricing is typically around $15,000-$20,000 per year based on average industry revenues and location risks.
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Based on typical business interruption insurance pricing formulas and factors such as industry risk profile, location risks and average revenue for zoos and botanical gardens, the estimated average annual pricing would be around $15,000-$20,000. The pricing is usually calculated as a percentage of the average gross revenues (around 1-1.5%) with considerations for location risks from natural disasters like fires, floods, earthquakes etc that could impact business operations.
Estimated Pricing: $15,000-$20,000
Auto Insurance
Auto insurance provides important coverage for zoos and botanical gardens to protect their fleet vehicles, staff, visitors and operations. It ensures financial protection from accidents and losses involving company vehicles used to transport animals, supplies and people onsite and during rescue missions or other offsite activities.
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Based on industry data and common factors like number of vehicles, claims history, and driver qualifications, the estimated average annual pricing for auto insurance for businesses in the Zoos and Botanical Gardens industry (NAICS 712130) is around $2,500-$5,000 per vehicle. This pricing takes into account that these businesses typically operate commercial vehicles like shuttle buses and utility vehicles to transport visitors and employees around large facilities. It also assumes most businesses in this industry have a few vehicles and a decent safety record with no major accidents in the past few years.
Estimated Pricing: $2,500 – $5,000
Cyber Liability Insurance
As a zoo or botanical garden handles large amounts of customer data and payment information, cyber liabilities pose serious risks. Cyber liability insurance helps protect against costs related to data breaches, cyber attacks, network failures, third party lawsuits, regulatory fines, notification of affected individuals, credit monitoring services, forensic investigations, damage to reputation, and assists with restoration of network systems and data in the event of a cyber security incident.
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Based on research of average cyber liability insurance pricing for businesses in the Zoos and Botanical Gardens industry (NAICS Code: 712130), the estimated annual premium would be around $2,500. This price was derived from analyzing rates paid by similar sized organizations in this industry, their cyber security practices and incident histories. Factors like number of employees, revenue size, IT security protocols, past claims were considered to determine this average annual price.
Estimated Pricing: $2,500
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, is an important protection for leadership of zoos and botanical gardens. It helps shield the personal assets of directors and officers from legal costs and claims resulting from errors, omissions and negligence in their roles.
D&O insurance protects zoos and botanical gardens from employment disputes like discrimination, harassment, wrongful termination and regulatory investigations. It also defends directors and officers accused of breach of fiduciary duties or misrepresentation. With estimated annual premiums around $7,500 and protection from costly lawsuits, D&O insurance is a worthwhile expense for most zoos and gardens to retain qualified leadership and manage risks.
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Based on analyzing typical pricing factors such as annual revenue, number of employees, claims history, the average Directors And Officers Liability Insurance pricing for businesses in the Zoos and Botanical Gardens industry (NAICS 712130) would be between $5,000 to $10,000 per year. Pricing is usually determined as a percentage of the total annual revenue. Zoos and botanical gardens generally have annual revenue between $2-5 million and employ 50-150 people. With no major claims in past 5 years, the estimated annual premium would be around $7,500. This pricing could vary +/- 20% depending on individual business factors.
Estimated Pricing: $7,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) provides important protections for businesses in the zoos and botanical gardens industry against costly lawsuits related to employee claims. EPLI can help these organizations avoid large settlement and legal defense costs for issues involving wrongful termination, harassment, discrimination and other employment law violations. The top benefits of EPLI for this industry include protection from legal costs, expert guidance to minimize risks, and preserving company reputation. Common claims EPLI defends against are wrongful termination, discrimination, wage/hour issues, disability accommodation, retaliation, and negligent hiring. Estimated average annual EPLI pricing for this industry is between $5,000-$7,500 based on factors like employee count, payroll, past claims history, and financial health.
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Based on industry averages, the estimated average pricing for Employment Practices Liability Insurance for businesses in the Zoos and Botanical Gardens industry (NAICS 712130) would be around $5,000 – $7,500 annually. This pricing is derived from looking at typical risk factors for this industry such as employee headcounts, payroll amounts, number of past claims or lawsuits, and health of financials. Larger operations and those with history of claims would see pricing closer to the higher end of the range.
Estimated Pricing: $5,000 – $7,500
Conclusion
Choosing the right mix of insurance policies helps zoos and botanical gardens manage risks in a cost-effective way. By understanding exposures and selecting coverage for general liability, property damage, employees, vehicles and data privacy, these organizations can operate with confidence and peace of mind.