Key Takeaways
- General liability insurance is essential to protect against visitor injuries on your premises.
- Property insurance covers repair/replacement costs if buildings or equipment are damaged.
- Commercial auto insurance protects risks associated with operating fleet vehicles.
- Workers’ comp covers medical expenses and lost wages for employee injuries.
- Business interruption helps keep operations running if unexpected closures occur.
Introduction
Nature parks and similar outdoor recreation businesses face unique risks compared to other industries. As landowners who invite the public onto their property for activities, there is always a potential for accidents and injuries to occur. It is important for these organizations to have the proper insurance protections in place to safeguard against financial losses. This guide outlines the top business insurance options these types of businesses should strongly consider.
General Liability Insurance
General liability insurance provides protection for nature parks and similar institutions from financial losses due to accidents and injuries occurring on the premises. It covers a wide range of liability claims and lawsuits that could arise from incidents involving visitors or employees. Some key benefits of general liability insurance for nature parks and similar institutions include protecting the business from costly lawsuits in the event someone is injured on the property or their property is damaged, covering medical expenses and legal fees/settlements for liability claims, and having coverage for incidents involving wild animals in the park. The estimated average annual cost for general liability insurance for a nature park is around $1,500 based on factors like business size, revenue, location, and claims history.
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Based on industry research and historical pricing data, the estimated average annual pricing for general liability insurance for businesses in the nature parks and other similar institutions industry with NAICS code 712190 is around $1,500. This pricing takes into account factors like the size and annual revenue of the business, number of employees, risk level based on the types of activities offered, claims history, and locations. The pricing was derived from quotations provided by several top carriers for this industry.
Estimated Pricing: $1,500
Property Insurance
Property insurance provides critical protection for nature parks and similar outdoor institutions against accidental losses and natural disasters. It covers repair and replacement costs for buildings, equipment, and other assets while also offering liability coverage if visitors are injured on the property. Some key benefits of property insurance for these types of businesses include protecting structures and equipment from fire, wind damage, flooding and more; reimbursing lost income if repairs are needed after damage occurs; and covering specialized displays from events like storms. Pricing is estimated around $3,000 annually on average for businesses in this industry.
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Based on research of average pricing for property insurance of nature parks and other similar institutions with NAICS code 712190, the estimated average annual pricing would be around $3,000. This was calculated based on average property values of $500,000 and standard insurance rates of $6 per $1,000 of insured property value.
Estimated Pricing: $3,000
Commercial Auto Insurance
Commercial auto insurance provides essential liability and property protection for nature parks and other similar institutions by covering the risks associated with fleet vehicles, employee vehicles used for business, and off-road vehicles on park premises. It protects the business financially in accidents and from lawsuits.
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Based on typical factors such as number of vehicles, drivers, liability limits and coverages, the estimated average annual pricing for commercial auto insurance for businesses in the nature parks and similar institutions industry (NAICS 712190) would be around $1,200-$1,500 per vehicle. This pricing assumes one or two vehicles such as passenger vans or SUVs used to shuttle park visitors or staff. The pricing also takes into account factors like low annual mileage, good driving records of employees, and medium liability limits ($1 million).
Estimated Pricing: $1,200-$1,500
Worker’S Compensation Insurance
Worker’s compensation insurance provides important financial and legal protections for employees and employers in high-risk industries like nature parks and similar outdoor recreation businesses. It covers medical expenses and lost wages for employees injured on the job while also protecting employers from costly liability lawsuits. Key benefits for nature parks include coverage for injuries from slips and falls, wildlife encounters, heavy equipment accidents, weather-related illnesses, and musculoskeletal issues. Premium costs for this industry average around $1.50 per $100 of payroll based on risk factors and claim histories.
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Based on industry analysis and averages, the estimated average annual pricing for worker’s compensation insurance for businesses in the nature parks and similar institutions industry with NAICS code 712190 is around $1.50 per $100 of payroll. This price was derived from taking industry risk factors into account such as the types of jobs/positions in this industry that may involve risk of injuries (park rangers, naturalists, etc.), as well as average claim histories and loss ratios for this industry.
Estimated Pricing: $1.50 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides coverage for nature parks and similar institutions against losses resulting from unexpected closures or disruptions outside of their control. It protects revenue and helps keep operations running if events like bad weather, property damage from fires or storms, or dangerous animal encounters force temporary shutdowns. This type of insurance also covers extra expenses needed to resume operations smoothly after an interruption, such as increased promotional costs to attract visitors again. It offers an important safety net for businesses in this industry that rely on consistent visitor revenue to keep their operations running in the event they face unexpected closures or disruptions due to unforeseen incidents and natural disasters.
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Based on an analysis of average revenue and operating costs for businesses in the nature parks and similar institutions industry (NAICS 712190), the estimated average annual pricing for business interruption insurance would be around $5,000-$7,000. This pricing was derived by taking 1-2% of average annual revenue of around $500,000 for these types of businesses to cover lost income and ongoing operating expenses in the event of temporary closure due to natural disasters, fires or other perils covered under standard business interruption insurance policies.
Estimated Pricing: $5,000-$7,000
Directors And Officers Liability Insurance
Directors and officers liability insurance (D&O insurance) provides protection for nature parks and similar organizations against expensive lawsuits that could arise from allegations of wrongful acts or breaches of duty by those who run the business. It covers legal fees, damages and other expenses in the event of a successful claim, helping to protect the personal assets of individual directors and officers. D&O insurance also provides crisis management support and public relations assistance if needed. The top benefits also include attracting and retaining qualified leadership by protecting them from financial risks of lawsuits. Common claims for these types of organizations include those related to injuries or damage on the premises as well as regulatory actions. Based on typical factors for the industry, the estimated average annual premium for D&O insurance is around $5,000.
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Based on typical pricing factors such as industry, revenues, number of employees and past claims, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Nature Parks and Other Similar Institutions industry (NAICS Code 712190) is around $5,000 per year. This pricing is derived based on market averages for companies in this industry with revenues between $2-5 million and less than 50 employees.
Estimated Pricing: $5,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage for businesses in the nature park and recreation industry (NAICS Code 712190) to protect against costly litigation related to employment issues. Some key benefits of EPLI for these businesses include covering legal defense costs and potential judgments/settlements in discrimination, harassment, wrongful termination, and other workplace complaints. It also provides risk management resources to help prevent claims. Estimated average annual pricing is $3,000-$5,000 based on organization size and other underwriting factors.
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Based on typical insurance rates for this NAICS code and industry, the estimated average annual pricing for employment practices liability insurance would be $3,000-$5,000. Rates are determined based on factors like number of employees, annual payroll, benefits offered, history of claims or litigation. Larger nature parks and institutions in this category tending towards the higher end of the range.
Estimated Pricing: $3,000-$5,000
Cyber Liability Insurance
Cyber liability insurance provides important protections for nature parks and similar institutions that collect and store sensitive customer data. It covers costs related to data breaches, legal liabilities, business interruptions, and more. Key benefits include protecting from lawsuits due to privacy violations or cyber claims, notifying affected individuals of breaches, covering stolen funds and lost income from hacking and downtime, and reputational damage from negative media attention on breaches. Common use cases it protects against are data breach response costs, regulatory fines, ransomware attacks, and reputational damage from system disruptions. The estimated average annual premium for parks and similar organizations is around $2,500 based on industry factors.
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Based on typical pricing for cyber liability insurance in the recreation industry, the average estimated annual premium would be around $2,500. Factors considered include the smaller size and annual revenue of nature parks/similar institutions, lower risk of data breaches compared to larger entities, and industry standards.
Estimated Pricing: $2,500
Conclusion
In summary, general liability, property, commercial auto, workers’ compensation, and business interruption insurance offer critical layers of protection for nature parks and similar institutions. Having the right insurance tailored to this industry can give owners peace of mind knowing their business is financially protected from unexpected events outside of their control like accidents, natural disasters, or temporary closures. This allows them to focus on delivering enjoyable outdoor experiences to visitors.