Top Business Insurance Coverage for Other Performing Arts Companies (NAICS 711190)

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This article covers the top types of business insurance that performing arts companies with NAICS code 711190 should consider, including their benefits, uses cases, and estimated pricing.

Key Takeaways

  • General liability insurance protects against third party bodily injury and property damage claims
  • Property insurance covers costs to repair or replace buildings, equipment and other property in case of damage or theft
  • Professional liability insurance protects against claims of negligence or errors related to business operations
  • Worker’s compensation insurance provides wage replacement and medical benefits for injured employees
  • Commercial auto insurance protects vehicles used to transport employees, equipment and materials
  • Cyber liability insurance covers costs related to data breaches and privacy violations
  • Commercial umbrella insurance provides additional liability protection above primary liability limits
  • Business interruption insurance covers lost income during temporary shutdowns from issues like natural disasters
  • Bundling multiple policies can provide pricing discounts for smaller companies
  • Online payment and quoting options make insurance convenient with busy performance schedules
  • A single claim without coverage could potentially cost hundreds of thousands of dollars
  • Review policy limits annually and renew as the business grows in size

Introduction

Businesses in the performing arts industry face unique risks depending on their specific operations. This article explores the top types of business insurance coverages that performing arts companies with NAICS code 711190 should consider to protect their business and mitigate financial risks. These insurance policies provide crucial protection for specialized equipment, liability concerns and income stability.

General Liability Insurance

General liability insurance provides protection for performing arts companies against claims of bodily injury, property damage and legal expenses. It covers crucial risks for their businesses from a variety of incidents and is an essential coverage. Some key benefits of general liability insurance for performing arts companies include covering costs of defending against lawsuits even if claims are later found invalid, demonstrating the business is responsible and reducing risks of lawsuits, and certain facilities requiring proof of insurance for the business to perform there. Common use cases where coverage would apply include bodily injury or medical claims from events, employees or volunteers, property damage claims from equipment or facilities, and legal defense costs if sued for injury or damages. Estimated annual pricing for general liability insurance for small performing arts companies is around $1,500.

Category List
Benefits
  • Covers bodily injury and property damage claims from customers
  • Protects your business assets from lawsuits
  • Covers legal fees and medical expenses if someone is injured at your business
  • Provides coverage for damage to third party property like rented performance spaces
  • Covers slips, trips, or falls by customers or clients at your business location
  • Provides defense even if a claim is later determined not valid which saves legal costs
  • Having insurance demonstrates your business is responsible and reduces risks of lawsuits
  • Certain facilities/venues may require proof of insurance for your business to perform there
  • Covers temporary additional locations like outdoor performances or pop-up events beyond your primary business space
Use Cases
  • Bodily injury or property damage claims from patrons at events
  • Bodily injury or medical claims from employees or volunteers
  • Property damage claims from equipment or facilities
  • Legal defense costs if sued for bodily injury or property damage
  • Bodily injury claims from accidents relating to sets/structures at events

Based on typical industry standards, general liability insurance for businesses in the other performing arts companies industry (NAICS 711190) usually ranges from $1,000 to $3,000 per year. Pricing is often calculated based on factors like gross annual revenue, number of employees, types of activities or performances, and loss history. For a small performing arts company with under $500K in annual revenue and less than 10 employees, an estimated annual price would be around $1,500.

Estimated Pricing: $1,500

Property Insurance

Property insurance is an important risk management tool for businesses in the performing arts industry. It can help protect expensive equipment, structures, inventory and reimburse lost income from unexpected property damage or theft.

Category List
Benefits
  • Coverage for damage or loss to business property and equipment
  • Reimbursement for lost income or extra expenses if the business has to temporarily shut down due to a covered loss
  • Protection against lawsuits in case someone gets injured on your property
  • Coverage for damaged or stolen equipment used for performances like instruments, costumes, sets, etc.
  • Replacement cost coverage to fully repair or replace damaged property without deductions for depreciation
  • Coverage forunique equipmentthat may be difficult to replace like specialty costumes, props, or sets
  • Business interruption coverage to continue paying operating expenses if the business cannot operate due to a covered loss
Use Cases
  • Protect equipment and props from theft, loss or damage
  • Cover buildings and structures like theaters/performance venues from fire, storms or other disasters
  • Reimburse for equipment and set replacement if damaged
  • Cover lost income if business has to close due to covered property damage

Based on industry data, the average annual property insurance pricing for businesses in the NAICS Code 711190 (Other Performing Arts Companies) industry is around $2,000. This pricing was derived by looking at average property values, claims history, and risk factors for this type of performing arts business.

Estimated Pricing: $2,000

Professional Liability Insurance

“Professional liability insurance, also known as errors and omissions insurance, provides important protection for businesses in the performing arts and entertainment industry. This type of insurance helps protect companies financially against legal costs and claims resulting from negligent acts or errors related to their business operations and services.”

Category List
Benefits
  • Covers costs of defending against lawsuits
  • Covers costs of judgments or settlements
  • Helps manage risks associated with artistic endeavors
  • Provides peace of mind against liability claims
  • Covers legal defense even if a claim is false
  • Protects personal assets from being exposed in a lawsuit
  • Allows the company to continue operating even during a lawsuit
Use Cases
  • Errors and Omissions Claims
  • Wrongful Acts Claims
  • Breach of Confidentiality Claims
  • Intellectual Property Infringement Claims
  • Network Security and Privacy Breaches

Based on typical pricing data for professional liability insurance for other performing arts companies (NAICS Code 711190), the average annual premium is around $2,000-$5,000. This price range was derived by looking at average premiums charged by top professional liability insurers for companies in this industry taking into account factors like annual revenue, number of employees/performers, types of performances/shows, and claims/loss history.

Estimated Pricing: $2,000-$5,000

Worker’S Compensation Insurance

Worker’s compensation insurance provides critical protections for employees and businesses in performing arts companies where injuries can occur due to activities like rehearsals, performances, equipment operation, or technical work. It ensures workers receive medical and wage support if hurt on the job while protecting employers from costly lawsuits. The top benefits for businesses include wage and medical coverage for injured workers, immunity from lawsuits, promotion of safer workplaces and faster recovery times, tax savings compared to lawsuit costs, and stronger employee relationships. Common use cases involve coverage for injuries from accidents, repetitive motion, traveling, and other event-related hazards. Pricing averages around $2.20 per $100 of payroll based on industry risk factors.

Category List
Benefits
  • Provides wage replacement & medical benefits to employees injured on the job
  • Protects the business from lawsuits if an employee is injured
  • Required by law in most states
  • Reduces absenteeism and promotes a faster return to work
  • Attracts quality employees as it offers peace of mind
  • Saves money compared to costs of employee lawsuits
  • Promotes a stronger employee-employer relationship
Use Cases
  • Coverage for injuries sustained during rehearsals, performances, or other artist activities
  • Coverage for injuries sustained during load-in/load-out of equipment
  • Coverage for injuries sustained while traveling for work
  • Coverage for repetitive stress or overuse injuries
  • Coverage for injuries from stage accidents like falling or prop malfunctions
  • Coverage for injuries sustained during technical operations like lighting, sound, or set builds

Based on national industry data, the estimated average pricing for worker’s compensation insurance for businesses in the Other Performing Arts Companies industry (NAICS 711190) is around $2.20 per $100 of payroll. This price was derived based on analyzing historical claims data for this industry and taking into account factors like occupational hazards, employee duties/risks, company size, safety procedures, etc. The price can fluctuate depending on the individual business’s risk profile and loss history.

Estimated Pricing: $2.20/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides liability protection and covers vehicles and equipment that performing arts businesses rely on for transportation needs. It is an essential insurance for businesses in this industry. The top benefits of commercial auto insurance for businesses in this industry include liability protection in accidents, coverage for vehicle damage, medical payments for injuries, rental reimbursement if a vehicle is unavailable, and replacement costs for totaled vehicles. Common uses of commercial auto insurance for businesses in this industry are to cover vehicles transporting employees, equipment, food and supplies to performances and events. The estimated annual cost for commercial auto insurance for businesses in this industry is about $1,500 based on common vehicle types, number of vehicles, mileage, location and other factors.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for physical damage to vehicles
  • Medical payments for those injured in insured vehicles
  • Replacement cost coverage to repair or replace a totaled vehicle
  • Rental reimbursement if a vehicle is unavailable due to a covered loss
  • Reduced liability risk by driving only hired and non-owned vehicles
Use Cases
  • Cover vehicles used to transport employees
  • Cover vehicles used to transport equipment
  • Cover vehicles used for food/supplies deliveries

Based on industry analysis and averages, the estimated pricing for commercial auto insurance for businesses in the Other Performing Arts Companies with NAICS Code 711190 would be around $1,500 annually. This price was derived using factors such as the types of vehicles owned, number of vehicles, mileage, driver history, location, and coverage limits. Vehicles are typically vans or cars used to transport performers and equipment to and from performances or events.

Estimated Pricing: $1,500

Cyber Liability Insurance

Cyber liability insurance provides important protection for performing arts companies that collect and store customer data. It helps offset unexpected costs from data breaches, lawsuits, and other cyber incidents so the business can focus on its core mission. Some key benefits of cyber liability insurance for performing arts companies include covering costs of notifying customers, providing credit monitoring and investigating incidents of a data breach, network security failures from ransomware or phishing attacks, system failures or equipment issues, legal defense costs if faced with lawsuits or regulatory fines following a cyber attack. The estimated average annual cost for a small to medium sized performing arts business is around $1,500.

Category List
Benefits
  • Covers data breach response costs like legal support, credit monitoring, cyber extortion payments
  • Covers lawsuit defense costs if sued over a data breach or privacy violation
  • Covers costs to notify affected individuals if their private data was compromised
  • Covers regulatory fines and penalties imposed for violation of data privacy laws like HIPAA, PCI, etc.
  • Covers loss of income and extra expenses if a cyber attack causes operations to shut down temporarily
  • Covers costs to send letters and update website in the event of a data breach
  • Covers public relations and crisis management consultants if there is negative publicity from a breach
  • Provides access to breach coaches and IT security experts in the event of an incident
Use Cases
  • Data Breach: Covers the costs of notifying customers, providing credit monitoring services, investigation costs, legal expenses in case of a data breach
  • Network Security Failure: Covers costs arising from a network security failure leading to a breach like ransomware attack, phishing, etc.
  • System Failure: Covers costs and losses arising from system failure, technical glitches, equipment malfunction
  • Regulatory Fines & Penalties: Covers any fines and penalties imposed by regulators for failure to comply with data protection laws
  • Defense Costs: Covers legal defense costs if the company is involved in a lawsuit following a cyber attack or data breach

Businesses in the Other Performing Arts Companies industry with NAICS Code 711190 tend to have lower data security risks than many other industries due to the nature of their business operations. However, they still face risks from third party service providers and vendors as well as potential internal security incidents. Based on industry studies, the estimated average annual pricing for a cyber liability insurance policy for a small to medium sized business in this industry would be around $1,500. This pricing assumes basic coverage of between $100,000 to $500,000 and a high deductible of $2,500 to $5,000.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable additional liability protection for performing arts companies. It covers risks above the limits of general liability and auto policies, helping to protect both businesses and personal assets from lawsuits.
Umbrella insurance is especially important for performing arts companies due to the risks of injuries during events and intellectual property claims. It strengthens overall liability coverage and enables operations to continue even if other policy limits are exhausted.

Category List
Benefits
  • Provides additional liability protection above your general liability and auto liability limits
  • Covers claims that don’t fall under your primary liability policies
  • Protects personal assets from lawsuits
  • Covers legal costs if you’re sued
  • Covers liability arising from employment practices
  • Protects against lawsuits from intellectual property claims like copyright infringement
  • Provides coverage for incidents involving watercraft or non-owned aircraft
  • Coverage remains in effect even if the limits of the underlying policies are exhausted
  • Brings economies of scale which makes high liability limits more affordable
Use Cases
  • Protect against lawsuits from employees, volunteers or audience members that are injured at events or on the business premises
  • Protect against lawsuits from vehicles used for transportation of employees, volunteers, equipment or materials
  • Protect against lawsuits from errors and omissions like failure to properly vet contractors or performers
  • Protect against lawsuits related to intellectual property disputes like copyright infringement

Based on industry risk factor and average sales revenue for other performing arts companies, the estimated average annual pricing for commercial umbrella insurance would be around $1,500. Umbrella insurance pricing is usually based on underlying commercial general liability limits and annual sales revenue. For this industry, underlying CGL limits of $1M are common and average annual sales revenue is around $500,000. Given these factors, insurers would typically price umbrella coverage at 3% of the underlying CGL limits, resulting in an estimated price of $1,500.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for businesses in sectors like other performing arts that depend on consistent operations and revenue streams from shows, performances and events. It covers lost income and ongoing expenses if unforeseen events force temporary shutdowns that could jeopardize the viability of the business without this protection. This type of insurance is especially important for arts and entertainment businesses that rely on regular activities and events to generate revenue. Shutdowns due to issues outside their control from natural disasters to pandemics can interrupt cash flows, but business interruption coverage helps maintain operations and restart activities after an insurable event.

Category List
Benefits
  • Covers lost income if your business is forced to temporarily shut down due to an insurable event like natural disasters, power outages, etc.
  • Helps pay ongoing operating expenses like rent, payroll, utilities if your revenue stream is interrupted
  • Protects cash flow so you can restart your business after an interruption without taking on debt or dipping into personal savings
  • Covers extra expenses like renting temporary office space if your primary location is unusable after an event
  • Covers lost income from cancelled shows, performances or events if your venue is shut down for a covered reason
  • Protects your ability to pay artists, performers and contractors if revenue is interrupted
  • Helps prevent layoffs of employees by covering payroll during a temporary shutdown
  • Provides funding to rehire staff, restock inventory and resume operations after an interrupting event
  • Covers increased marketing & advertising costs to promote rescheduled shows/events and regain customers
  • Includes dependent property coverage for lost income if your suppliers or vendors experience an insurable event
Use Cases
  • Loss of income due to canceled events or performances due to natural disasters like hurricanes, earthquakes or wildfires
  • Loss of income due to utility interruption like power outage
  • Loss of income due to closure of facilities due to building damage like fire or water damage
  • Loss of income during outbreaks of infectious diseases that cause a shutdown of facilities and events

Based on standard industry practices for pricing business interruption insurance, the estimated average annual premium would be around 1-2% of the total insured value. For a typical business in the other performing arts companies industry with an annual revenue of $500,000, and assuming the business interruption insurance insures 6 months of lost revenue, the total insured value would be $500,000 * 0.5 = $250,000. At an average rate of 1.5% of total insured value, the estimated annual premium would be $250,000 * 0.015 = $3,750.

Estimated Pricing: $3,750

Conclusion

Properly insuring a performing arts business through policies like general liability, property, professional liability and more can help protect the company’s assets, support continued operations and provide peace of mind knowing expenses from unexpected events will be covered. Maintaining adequate insurance is an important risk management strategy for businesses in this specialized industry.

Frequently Asked Questions

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