Top Business Insurance Considerations for Bowling Centers with NAICS Code 713950

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Understand the key insurances bowling centers need to protect their business such as general liability, commercial property, workers' comp, business interruption and more.

Key Takeaways

  • Consider general liability, commercial property, workers’ compensation and business interruption insurance as core protections
  • Also examine commercial auto, cyber liability, D&O and EPLI coverages depending on your specific risks and needs
  • Equipment breakdown insurance provides specialized coverage for essential bowling lane and pinsetter machinery
  • Commercial umbrella liability extends protection above base liability limits

Introduction

As a bowling center business classified under NAICS code 713950, it’s important to understand the key types of commercial insurance needed to protect operations. Core policies help cover liability risks from customer injuries, property damages and losses, employee accidents, and income interruptions from disruptive events.

General Liability Insurance

General liability insurance is an essential coverage for bowling centers. It helps protect the business from costly lawsuits and claims if a customer is injured on the premises or during bowling-related activities.

Category List
Benefits
  • Covers bodily injury and property damage claims from customers
  • Protects against slip and fall accidents common in bowling alleys
  • Covers medical expenses if a customer gets injured on the premises
  • Covers damage to customer property if it is accidentally damaged at the bowling center
  • Provides liability protection for other operations at the bowling center like arcade games, snack bars, etc.
  • Covers legal fees if the business is sued for injuries
  • Protects the business from bankruptcy if a large lawsuit occurs
Use Cases
  • Protect against lawsuits from customers who slip and fall or are otherwise injured at the bowling alley
  • Cover liabilities if a customer is injured by improperly maintained bowling equipment like lanes or pins
  • Provide coverage if a customer is injured while being taught or practicing bowling techniques
  • Defend and pay claims if a customer is injured in a vehicle accident while being transported to or from a league or tournament
  • Protect against claims from customers who are injured by League/Tournament activities like prizes/awards ceremonies
  • Cover liabilities if a customer alleges food poisoning from items purchased from the bowling center’s kitchen/snack bar

Based on industry statistics, the average cost for general liability insurance for bowling centers is around $2.50 per $100 of gross receipts. For a typical bowling center with annual gross receipts of $500,000, the estimated annual premium would be $2.50 x $500,000 / $100 = $12,500.

Estimated Pricing: $12,500

Commercial Property Insurance

Commercial property insurance is essential coverage for bowling centers to protect their business and investments from losses. It reimburses repair and replacement costs after covered incidents like fires or storms and helps keep operations running after an event. Commercial property insurance also covers liability if someone is injured on the property, business income loss if operations are suspended, and equipment replacement if bowling lanes, pins or balls are damaged.

Category List
Benefits
  • Covers damages and losses to building and business personal property from covered perils like fire, wind, hail, theft and vandalism
  • Reimburses costs to repair or rebuild after covered losses like fire or natural disasters
  • Covers liability if someone is injured on your property from hazards (slip and falls, etc.)
  • Covers business income loss if operations are suspended due to covered property damage
  • Covers equipment replacement if bowling lanes, pins, balls or other equipment are damaged
  • Provides equipment breakdown coverage for mechanical breakdown of machines
  • Covers extra expenses to minimize business interruption like temporary relocation
  • Protects the value of your investment and assets
Use Cases
  • Protection against fire damage
  • Protection against storm/hurricane damage
  • Protection against burglary and theft
  • Protection against vandalism and malicious damage
  • Protection against equipment breakdown

Based on industry data, the average annual commercial property insurance premium for bowling centers is estimated to be around $3.50 per square foot. The premium is calculated based on factors such as the size and construction of the building, protection class, and location. For a typical 20,000 square foot bowling center, the estimated annual premium would be $3.50 x 20,000 = $70,000.

Estimated Pricing: $70,000

Workers Compensation Insurance

Workers compensation insurance is a critical protection for bowling centers due to the physical nature of operating and maintaining bowling alleys. It provides essential medical and wage replacement benefits if employees are injured on the job, helping both employees and businesses manage costs from accidents and ensuring care is received. Additionally, it protects bowling centers from expensive liability lawsuits and covers legal defense costs if claims are disputed. Rates are derived by analyzing industry payroll amounts and past injury claims, with bowling centers facing moderate risks around $3.50 per $100 of payroll.

Category List
Benefits
  • Provides medical benefits to injured employees
  • Pays lost wages for employees who cannot work due to injuries
  • Protects the business from lawsuits if an employee is injured on the job
  • Covers rehabilitation costs if an injury requires physical therapy or counseling
  • Reduces the costs associated with on-the-job accidents through negotiated medical rates with providers
  • Required by law in all states
Use Cases
  • Cover medical expenses and wages if an employee gets injured on the job
  • Pay disability benefits if an injury prevents an employee from returning to their usual job
  • Cover lost wages and medical treatment if an employee suffers from an occupational disease or illness
  • Pay funeral expenses if a work-related injury or illness causes an employee’s death
  • Cover legal defense costs if an employee files a workers’ compensation claim

Based on national industry standards and averages, the estimated pricing for workers compensation insurance for bowling centers is around $3.50 per $100 of payroll. This rate is derived from analyzing payroll amounts and past claim history for the industry. Businesses in this category have a moderate risk level due to the physical nature of the work.

Estimated Pricing: $3.50 per $100 of payroll

Business Interruption Insurance

Business interruption insurance provides crucial protection for the financial stability and recovery of bowling centers in the event that operations are disrupted due to unforeseen events and incidents. It covers lost income and ongoing expenses to help maintain cash flow and the ability to pay employees and obligations during closure or recovery periods. The top benefits of this type of insurance for bowling centers include reimbursing additional expenses for temporary facilities if repairs take a long time, and covering loss of income from dependent businesses that may also be impacted. The most common use cases necessitating coverage are natural disasters, equipment failures, security incidents, labor disputes, and damage from plumbing or boiler issues requiring repairs. On average, business interruption insurance for a bowling center is estimated to cost around $2,500 annually based on their typical revenue and risk factors.

Category List
Benefits
  • Provides income if the business needs to temporarily close due to damage to the property
  • Covers lost profits and ongoing expenses if the business is unable to operate
  • Protects cash flow so you can pay your employees and other obligations
  • Helps maintain stable revenue when unexpected events cause business disruptions
  • Reimburses additional expenses like renting temporary space if repairs take a long time
  • Covers loss of income from dependent businesses if they are also affected by an event
  • Allows the business owner to focus on recovery instead of finances during a difficult time
Use Cases
  • Natural disasters like hurricanes, floods or wildfires damage the property
  • Equipment failures like mechanical breakdowns or electrical outages disrupt operations
  • Vandalism or other security incidents force closure of the business
  • Labor disputes like strikes result in reduced income
  • Plumbing leaks or boiler issues force temporary closure for repairs

Based on typical business interruption insurance pricing factors such as revenue, payroll, location risks, etc. for bowling centers, the estimated average annual pricing would be around $2,500. This was calculated based on industry averages that business interruption insurance pricing is usually around 0.5-1% of annual revenue. The average annual revenue for a bowling center is around $500,000. So at the mid-point of 0.75% of revenue, the estimated price is 0.0075 * $500,000 = $2,500.

Estimated Pricing: $2,500

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for property damage or medical expenses resulting from vehicle accidents for businesses in the bowling centers industry. It protects the financial health of bowling centers from a variety of risks involved with vehicle usage such as transporting equipment, making deliveries, and providing transportation services to customers. Based on the usage details provided, an estimated annual commercial auto insurance premium for a typical bowling center with 3-5 vehicles used mostly for local delivery and transport would be around $2,000.

Category List
Benefits
  • Protects your business from liability claims if an employee is in an accident while driving a company vehicle
  • Covers the repair or replacement costs if a company vehicle is in an accident
  • Provides medical payments coverage if someone is injured while in your vehicle
  • Covers loan or lease payments if a financed vehicle is totaled in an accident
  • Includes uninsured/underinsured motorist coverage in case an at-fault driver lacks enough insurance
  • Offers coverage for vehicle theft or damage
Use Cases
  • Protect from liability if an employee gets into an accident while using a company vehicle
  • Cover medical expenses and property damage if an accident occurs while making deliveries or transporting supplies and equipment
  • Replace or repair a company vehicle if it’s damaged or totaled in an accident
  • Cover medical bills and liability claims if an accident occurs while giving customers rides to and from the bowling center

Based on the average risks involved for vehicle use in bowling centers, commercial auto insurance for this industry typically ranges from $1,500 – $2,500 per year for a single vehicle policy. Factors such as number of vehicles, driver qualifications, safety records, and certain policy limits/coverages can affect pricing. For a small to mid-sized bowling center with 3-5 vehicles used mostly for local delivery/transport, an estimated annual price would be around $2,000.

Estimated Pricing: $2,000

Commercial Umbrella Liability Insurance

Commercial umbrella liability insurance provides an additional layer of liability protection for businesses and can help mitigate large financial risks from various types of liability claims that may exceed primary insurance limits. Umbrella insurance is especially useful for bowling centers to protect against lawsuits from customers injured on the premises, cover incidents involving alcohol being served, and provide coverage for off-premises events like leagues and tournaments.

Category List
Benefits
  • Provides additional liability protection above your standard commercial general liability and auto liability limits
  • Covers punitive damages in most states which standard policies do not
  • Protects personal assets from liability awards and settlements
  • Covers liability claims from your contractors and subcontractors’ work for an additional layer of protection
  • Covers ‘vicarious liability’ claims that may arise from the acts of your employees or other parties working on your behalf
  • Covers liability claims from your owned or non-owned watercraft which standard policies usually exclude
Use Cases
  • Protect against lawsuits from customers that are injured on the premises
  • Cover liability claims that exceed the limits of the primary general liability insurance
  • Provide additional coverage for incidents involving alcohol being served at events
  • Cover claims from employees that are injured on the job
  • Protect the business assets from large liability lawsuits
  • Cover claims arising from the use of vehicles for business purposes like shuttle services
  • Provide excess coverage for off-premises events like leagues and tournaments

Based on typical risk factors for bowling centers such as NAICS code 713950, the estimated average annual premium for $1 million in commercial umbrella liability coverage would be approximately $1,500. This pricing is derived from average rates charged by insurers for similar businesses with no major claims over the past 3 years and basic general liability limits of $1 million.

Estimated Pricing: $1,500

Cyber Liability Insurance

Bowling centers that store customer payment card data and personal information are at risk of data breaches and cyber attacks. Cyber liability insurance provides important financial protection and peace of mind for these businesses by covering costs related to breach response and third party liability claims. Top benefits of coverage include protection against forensic investigation, legal fees, notifications, fines and penalties from a breach, as well as liability protection and reimbursement for lost income and hardware replacement if systems are impacted. Common causes of loss include data breaches, network security failures, third party lawsuits, and human errors exposing customer information. On average, cyber liability insurance for bowling centers costs around $1,500 annually based on factors like revenue, employees and IT systems.

Category List
Benefits
  • Protection against costs of a data breach including forensic investigation, legal fees, PR expenses, credit monitoring services
  • Coverage for legal damages and settlements in the event of a data breach lawsuit
  • Reimbursement of costs to recover and restore lost or damaged data
  • Regulatory fines and penalties coverage for violations of data privacy regulations like HIPAA and GDPR
  • Coverage for loss of business income if the network is impacted by a cyber attack or data breach
  • Coverage for hardware replacement if devices are damaged by a cyber attack
  • Liability protection if a malicious third party uses compromised customer data to commit identity theft or fraud
Use Cases
  • Data breaches involving customer payment card or personal information
  • Network security failures leading to ransomware or other cyber attacks
  • Liability from a third party lawsuit over a data breach or privacy violation
  • Costs associated with a data breach response including forensic investigation, consumer notifications, credit monitoring
  • Business interruption from a network outage or cyber attack
  • Liability if an employee negligently exposes customer data through human error
  • Coverage for targeted phishing or email impersonations attempting to obtain customer information from employees

Based on industry analysis, the average annual pricing for cyber liability insurance for bowling centers is estimated to be around $1,500. This pricing is derived from factors such as annual revenue, number of employees and computer systems. Bowling centers typically have smaller revenues and employee counts compared to other industries, placing them in a lower risk tier for pricing.

Estimated Pricing: $1,500

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) is an important coverage for bowling centers to protect their leadership from personal liability in the event of lawsuits related to their roles in managing the business.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit
  • Covers legal fees and expenses if a claim is brought against directors or officers
  • Protects the company from indemnifying directors and officers for uncovered losses
  • Provides coverage for wrongful acts such as errors, omissions, breaches of duty, misstatement, misleading statements
  • Attracts qualified directors and officers to serve on the board by providing protection
  • Covers claims brought by shareholders, employees, customers and other third parties
Use Cases
  • Protect directors and officers from liability claims arising from errors, omissions, breaches of duty, or misleading statements made in their roles.
  • Cover legal defense costs if a lawsuit is filed against any directors or officers for covered wrongful acts.
  • Reimburse directors or officers for financial losses and settlements if a claim is successful and proven against them.

Based on typical pricing models for D&O insurance, bowling centers with NAICS code 713950 and annual revenues between $1-5 million would on average pay around $5,000-7,500 annually for D&O coverage. Pricing is determined based on factors like annual revenues, number of directors/officers, claims history, and level of coverage desired.

Estimated Pricing: $5,000-$7,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important protection for bowling centers to safeguard against costly litigation and legal risks. EPLI provides bowling centers essential coverage for claims alleging wrongful termination, discrimination, harassment and other workplace issues from current, past and future employees. It also includes defense costs if sued and payments for settlements or judgements if found legally liable. With risks such as discrimination lawsuits, EPLI can help bowling centers limit liability within an estimated annual cost of $2,500 for businesses employing 10-50 people.

Category List
Benefits
  • Protection from employee lawsuits alleging wrongful termination, discrimination, harassment or other claims
  • Defense costs if sued, even if the claim is groundless
  • Coverage for settlements or judgments if the employer is found legally liable
  • Access to risk management services and legal guidance to help prevent claims
  • Coverage for claims from past, present, and future employees
  • Peace of mind knowing the business is protected from unexpected liability
Use Cases
  • Wrongful termination lawsuits
  • Discrimination or harassment claims
  • Workplace injury lawsuits
  • Wage and hour disputes

Based on industry analysis, the average estimated pricing for Employment Practices Liability Insurance for businesses in the Bowling Centers industry (NAICS 713950) is around $2,500 annually. This price was derived from typical policy pricing for companies in this industry sector that employ between 10-50 people.

Estimated Pricing: $2,500

Equipment Breakdown Insurance

Equipment breakdown insurance provides customized protection for specialized machinery like lanes and pinsetters against mechanical failures, electrical issues, explosions and other covered causes of loss in bowling centers.

It covers repair or replacement costs, additional expenses from losses of income during repairs, inspection/maintenance costs for covered equipment, and failures due to operator error or improper maintenance. Coverage includes appliances, air conditioners, refrigeration equipment, scoring systems, and other electronic or mechanical equipment.

Category List
Benefits
  • Covers repair or replacement costs of breakdowns for equipment like lanes, pinsetters, bumpers
  • Covers additional expenses from loss of business income during equipment repair/downtime
  • Covers extra costs like overtime, temporary rentals during repairs to continue operations
  • Covers inspection and maintenance costs for covered equipment
  • Single, all-in-one policy for equipment breakdowns instead of separate property & liability policies
  • Coverage for electronic equipment components damaged by power surges or electrical current fluctuations
  • Coverage for failures due to operator error or improper maintenance/repairs
Use Cases
  • Protect bowling lane machines and pinsetters from mechanical and electrical failures
  • Cover air conditioner units, refrigeration equipment and other appliances if they breakdown
  • Repair or replace scoring systems, ball returns or other electronic equipment if damaged
  • Provide funds to rent replacements if key equipment like lane surfaces need repairs
  • Cover costs to repair or replace ventilation, plumbing or electrical systems if they malfunction

Based on typical equipment values and breakdown risk for bowling centers, the estimated annual premium for equipment breakdown insurance would be around $3,000. This was calculated based on average equipment values of $500,000 and industry loss ratios. Equipment in bowling centers such as lanes, pinsetters, scoring systems have high repair costs if they breakdown.

Estimated Pricing: $3,000

Conclusion

In summary, general liability, commercial property, workers’ comp and business interruption form the foundation of insurance protections. However, additional considerations like commercial auto, cyber liability and specialized equipment breakdown coverage provide further risk management based on each facility’s unique exposures and assets.

Frequently Asked Questions

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