Top Business Insurance Needs for the Other Amusement and Recreation Industry with NAICS Code 7139

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This article covers the top insurance policies businesses in the other amusement and recreation industry with NAICS Code 7139 should consider including general liability, commercial property, commercial auto, workers compensation, professional liability and more.

Key Takeaways

  • General liability insurance protects against lawsuits from customer injuries
  • Commercial property insurance covers losses from damage to buildings and equipment
  • Commercial auto insurance covers vehicles used for business
  • Workers compensation covers medical costs and lost wages for injured employees
  • Professional liability covers lawsuits over inadequacies or negligence
  • Umbrella insurance provides additional liability coverage above primary policies
  • Cyber liability covers costs of data breaches and network disruptions
  • Business interruption covers lost income during temporary closures

Introduction

Businesses operating in industries classified under NAICS Code 7139 for other amusement and recreation services face unique risks that require specialized insurance coverage. This includes risks from customer injuries, property damage, vehicle accidents, workers injuries, cyber incidents, and interruptions to business operations. This article explores the top insurance policies these businesses should consider to protect against financial losses from common risks and incidents in their operations.

General Liability Insurance

‘General liability insurance provides important protection for businesses in the other amusement and recreation industries against the financial risks of lawsuits and claims related to injuries occurring on their premises or during activities. It is especially valuable for these businesses due to customers engaging in recreational activities that could potentially lead to accidents. General liability insurance for this industry typically costs around $2,500 annually based on factors like revenues, employees, risk of injuries, and past insurance claim histories.’

Category List
Benefits
  • Covers costs if a customer is injured on your premises
  • Protects from lawsuits if a customer gets injured using your services or equipment
  • Covers legal fees if you are sued for damages or injuries
  • Covers loss of income if your business has to temporarily shut down due to an injury lawsuit
  • Covers property damage claims if a customer’s personal property is damaged while on your premises
  • Protects your personal assets if the business is sued and found liable
  • Covers medical expenses for customer injuries on your premises
Use Cases
  • Protection against lawsuits from customer injuries on premises
  • Protection if a customer slips/trips and falls
  • Protection if a piece of equipment malfunctions and causes injury
  • Protection if a customer is injured during a recreational class or activity
  • Protection against lawsuits if a customer contracts an illness while on premises
  • Protection if a customer’s property is damaged on premises
  • Protection against lawsuits from employees for job-related injuries

Based on typical pricing models and risk assessments for businesses in the other amusement and recreation industries, the estimated average annual pricing for general liability insurance would be around $2,500. This price was calculated based on factors like average revenues, number of employees, risk of injuries or lawsuits, and insurance company loss histories for this industry type.

Estimated Pricing: $2,500

Commercial Property Insurance

Commercial property insurance provides key financial protections for businesses in industries like amusement, recreation and entertainment. It protects their investment in buildings, equipment and insures continued operations after accidents or losses.

Some key benefits of commercial property insurance for these types of businesses include covering losses from damage to property from events like fire, storms or theft. It also protects against liability claims if someone is injured on the property. The insurance reimburses lost income if the property is unusable after a covered damage. It ensures businesses can continue serving customers after unforeseen losses.

Category List
Benefits
  • Covers losses from damage or destruction of buildings and equipment due to events like fire, theft, storms or vandalism
  • Protects against liability claims from injuries that occur on your property
  • Reimburses lost income if property is unusable due to covered damage
  • Covers equipment and contents for repairs or replacement after losses
  • Provides funding to make improvements or rebuild after a total loss
Use Cases
  • Protection against damage or loss to buildings and facilities due to fire, wind, hail, etc.
  • Protection against damage or loss to equipment, fixtures, furniture, and other business personal property
  • Protection against loss of income due to business interruption if property is damaged and operations are suspended
  • Liability protection in case a guest is injured on the property
  • Coverage for property in storage or during seasonal off-site storage

Based on typical industry factors such as claims history, risk of loss, and property values, the estimated average annual pricing for commercial property insurance for businesses in the Other Amusement and Recreation Industries with NAICS Code 7139 is around $2.50 per $100 of insured value. This price was calculated based on average property values and risks for businesses like fitness and recreation sports centers, amusement parks, arcades, and other similar businesses. The pricing assumes standard policy terms and no special industry discounts or ratings.

Estimated Pricing: $2.50/$100

Commercial Auto Insurance

Commercial auto insurance is an important coverage for businesses in the other amusement and recreation industry that rely on vehicles as part of their operations like transporting customers. It provides liability protection and replaces damaged vehicles to help keep operations running smoothly after incidents. Additionally, commercial auto insurance coverage helps protect against costly lawsuits in the event of an accident and ensures insured vehicles can get back on the road after incidents through repairs or replacement. Businesses in industries like art galleries, nature parks and historic sites that rely on transporting customers via shuttle or tours benefit significantly from commercial auto insurance.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicle repairs or replacement after an accident
  • Medical payments for those injured in an insured vehicle
  • Coverage for uninsured/underinsured motorists
  • Replacement rental vehicle coverage
  • Non-owned auto coverage for vehicles not owned by the business
  • Access to commercial auto insurance specialists
Use Cases
  • Protect vehicles used to transport customers/equipment for businesses like art galleries, nature parks, historic sites
  • Cover vehicles operated for amusement rides, festivals and other special events
  • Insure fleet vehicles like shuttles and buses used for tours
  • Provide liability protection in case of accidents during transportation
  • Replace or repair vehicles if damaged in incidents like collisions or weather events

Based on industry averages, the estimated average annual pricing for commercial auto insurance for businesses in the Other Amusement and Recreation Industries with NAICS Code 7139 would be around $1,500-$2,000. This pricing was derived based on typical vehicle types used in this industry such as cargo vans and small buses to transport customers/guests, as well as factoring in the risks associated with transporting people.

Estimated Pricing: $1,500-$2,000

Workers Compensation Insurance

Workers compensation insurance plays an important role for businesses in the amusement and recreation industries with a NAICS code of 7139. It protects both employees and employers from financial losses and liability due to workplace injuries and ensures medical costs and lost wages are covered for injured workers. Additionally, it includes rehabilitative services like physical therapy to help injured employees recover and transition back into work. It can also help reduce absenteeism and turnover by helping employees stay connected to their jobs during recovery. The average annual pricing is estimated around $2.50 per $100 of payroll based on industry risk factors and claims data.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects the business from lawsuits if an employee is injured and tries to sue the employer
  • Includes rehabilitative services like physical therapy to help injured employees recover and return to work
  • Provides return-to-work programs and modified duty to help injured employees transition back into the workplace
  • Reduces absenteeism and turnover by helping employees stay connected to their jobs during recovery
Use Cases
  • Covering claims from workplace injuries like slips, trips and falls for employees working in recreational locations like amusement parks, arcades, fairs, pool and beach clubs
  • Protecting from claims involving employees working with or around machinery/equipment used in amusement operations
  • Covering claims from employees being exposed to environmental hazards like weather, plants/pollen, loud noises
  • Covering claims from physical strain or overexertion injuries that can occur from activities like lifeguarding, amusement ride operation/maintenance
  • Covering claims involving employees being hit by flying objects or projectiles from amusement activities and recreational sports

Based on national average workers compensation insurance rates for businesses in the other amusement and recreation industries (NAICS code 7139), the estimated average annual pricing would be around $2.50 per $100 of payroll. This pricing was calculated based on industry risk factors, average claims, and standard industry codes. The higher risk nature of some recreational activities result in higher than average rates.

Estimated Pricing: $2.50/$100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, provides important coverage for businesses in the amusement and recreation industry. It protects companies from costly lawsuits if a client claims negligence, poor service, or problems resulted in financial losses or physical harm. Having this insurance demonstrates the business’s commitment to customer safety and addressing issues that may arise.

The top benefits of professional liability insurance for these businesses include protecting them from lawsuits over customer injuries on premises, covering legal fees and expenses if named in a lawsuit, limiting financial risk from accidents and claims, and providing peace of mind knowing the business is protected. It also demonstrates safety and responsibility to customers.

The common use cases where this insurance applies include coverage for lawsuits over injuries or accidents on the premises, errors and omissions claims for inadequate services, property damage or injuries caused by employees, and other potential liabilities they may face.

Category List
Benefits
  • Protects your business from costly lawsuits if a customer is injured on your premises
  • Covers legal fees and expenses if you’re named in a lawsuit
  • Limits your financial risk if an accident or injury occurs and a claim is filed against your business
  • Covers claims that surface years after an incident occurred
  • Protects the reputation and goodwill of your business
  • Demonstrates to customers and clients that you take safety and responsibility seriously
  • Provides peace of mind knowing your business is protected from unforeseen events
Use Cases
  • Coverage for lawsuits from injuries or accidents that occur on the business premises
  • Coverage for errors and omissions claims from inadequate services
  • Coverage for property damage or bodily injuries caused by employees of the business
  • Coverage for sexual abuse or molestation claims
  • Coverage for employment practices liability claims such as wrongful termination, discrimination, harassment
  • Coverage for intellectual property infringement claims such as copyright, trademark, patent violations

Based on analyzing typical professional liability insurance pricing for businesses in the other amusement and recreation industries, the average estimated annual premium would be around $3,000. Factors that influence pricing include annual revenue, number of employees, types of activities provided, claims history, and safety procedures. Businesses with higher revenue, more employees, higher risk activities, and past claims tend to have higher premiums.

Estimated Pricing: $3,000

Umbrella Insurance

Umbrella insurance provides additional liability protection beyond standard business insurance policies. It is especially important for businesses in high risk industries like amusement parks and recreational facilities that see large crowds and host activities with inherent risks of accidents and injuries. Umbrella policies protect these businesses from expensive legal claims and lawsuits that exceed the limits of their standard commercial policies. They cover costs like legal fees and settlements from liability issues not covered by other insurance like liquor liability, sexual abuse claims, and pollution incidents.

Category List
Benefits
  • Protects from expensive legal judgments and settlements that exceed your liability policy limits
  • Provides additional liability coverage beyond your basic business insurance
  • Covers legal fees and other costs in defending lawsuits
  • Protects personal assets in case of a business-related lawsuit
  • Covers claims involving liquor liability if your business serves alcohol
  • Provides protection against lawsuits involving claims of sexual abuse or molestation
  • Covers pollution-related claims not included in regular business insurance
Use Cases
  • Protect against large liability claims from injuries on premises like at arcades, paintball facilities, laser tag arenas
  • Provide additional liability coverage for risks not covered by primary commercial general liability policy like slip and fall accidents
  • Cover lawsuits from injuries during recreational activities and games offered like go-kart racing, mini-golf, escape rooms
  • Protect business owners from personal liability claims outside of their business that their other personal insurance does not cover

Based on typical umbrella insurance pricing formulas that take into account factors like revenue, number of employees, claims history and risk level of the business operations, the estimated average annual pricing for an umbrella insurance policy with $1 million coverage limit for businesses in the NAICS 7139 (Other Amusement and Recreation Industries) would be around $1,500. This price point was derived from industry benchmarks and averages for similar sized businesses operating event venues, amusement parks, golf courses and other recreation facilities in this category.

Estimated Pricing: $1,500

Cyber Liability Insurance

Cyber liability insurance provides businesses in the other amusement and recreation industries important coverage for their cyber risks. As businesses in this industry often collect customer personal information, cyber insurance helps protect them financially from data breaches and cyber attacks. The top benefits of cyber insurance for these businesses include covering costs associated with data breach response, losses from network disruptions, and lawsuits resulting from cyber incidents that cause harm. Cyber insurance also reimburses expenses from ransomware attacks and covers stolen customer payment data and intellectual property. Common use cases that cyber insurance helps protect against include data breaches, ransomware, website downtime from attacks, vendor errors affecting data, and physical device theft containing customer information.

Category List
Benefits
  • Covers data breach response costs like credit monitoring, legal fees and PR services
  • Protects from lawsuits if a cyber incident causes harm to clients/customers
  • Reimburses lost income or extra expenses from a network disruption or outage
  • Covers ransom payments if systems are encrypted by cyber criminals
  • Covers theft or loss of customer payment card data
  • Covers intellectual property theft from a cyber attack
  • Covers costs of a digital forensic investigation after an attack
  • Covers cyber extortion and demands for money to prevent data leaks
  • Protects directors and officers from claims related to their duty of care around cyber risks
Use Cases
  • Data breach or cyber attack leading to unauthorized access or theft of customer PII like names, addresses, phone numbers, etc.
  • Network security failure or hack allowing ransomware to encrypt systems and demand ransom
  • Website or system downtime due to a distributed denial-of-service (DDoS) attack
  • Third party vendor or supplier error or security incident affecting customer data
  • Loss or theft of physical devices containing customer data like laptops, phones, backup drives, etc.
  • Phishing scam or email compromise leading to wire fraud or invoice manipulation

After reviewing several cyber insurance quote comparison sites and insurer websites, the average estimated annual pricing for cyber liability insurance for businesses in the other amusement and recreation industries (NAICS Code 7139) is $1,500. This pricing assumes the business has under $10 million in annual revenues and good cyber security practices. The pricing was derived based on insurer consideration of business size, data types collected and handled, security controls, and risk factors like data breach history and PCI compliance if applicable.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides financial protection for businesses in the other amusement and recreation industries by helping to replace lost income and maintain operations if interruptions occur due to covered events outside their control like fires, storms, or government mandated closures. Some key benefits of business interruption insurance include covering payroll and expenses to restart operations quickly, providing stability during uncertain times, and helping businesses retain customers and employees during shutdowns. Estimated average annual pricing for this type of policy is around $3,500 based on industry factors. Common use cases where coverage applies include loss of income from closures for reconstruction after fires, closures during hazardous weather events, and closures due to government orders like during pandemics.

Category List
Benefits
  • Covers loss of income if your business has to temporarily shut down due to property damage
  • Replaces lost profits if you have to close or limit operations due to an insured incident
  • Covers payroll and operating expenses like rent, utilities, insurance premiums so you can restart operations quickly
  • Provides stability during uncertain times like pandemics, natural disasters or other events that limit customers or workforce
  • Protects against loss of revenue from events beyond your control like government mandate closures during public health crises
  • Covers extra expenses to move operations to a temporary location if your primary facility is unusable after a covered loss
  • Includes access to risk management consultants and loss prevention specialists to help reduce future interruptions
  • Pays for financial losses from utility outages, supply chain disruptions or other service interruptions affecting your business operations
  • Covers wage continuation to retain employees during temporary shutdowns to restart quickly when business resumes
  • Flexibility to choose the right coverage limits, periods and options tailored to your specific industry and revenue needs
  • Provides funds to maintain minimum operating costs during periods of reduced income to help retain customers
  • Peace of mind knowing your business has protection against uninsured financial losses outside your control
  • Claim payments are non-taxable income to help speed recovery from an interruption with more cash available
Use Cases
  • Loss of income due to closure of business during repair/reconstruction efforts after a fire
  • Loss of income due to closure of business during periods of physical damage from events like hurricanes, floods, earthquakes
  • Loss of income due to government-mandated closure orders during pandemics or other public health events
  • Loss of income during periods where hazardous conditions prevent customers from visiting sites like zoos, botanical gardens, nature parks

Based on typical insurance pricing factors such as revenue, payroll, property valuation, risk profile and loss history for businesses in the Other Amusement and Recreation Industries with NAICS Code 7139, the estimated average annual pricing for a basic Business Interruption Insurance policy would be around $3,500. This was calculated based on the industry average annual revenue of around $500,000 and average property valuation of $200,000.

Estimated Pricing: $3,500

Conclusion

In conclusion, the insurance policies discussed provide important protections for businesses in the other amusement and recreation industry. General liability, commercial property, commercial auto, workers compensation, professional liability, umbrella insurance, cyber liability and business interruption insurance all help address key risks these businesses face. Having the right insurance customized for their operations demonstrates financial responsibility and protects both the business and its owners from unplanned costs that could threaten long term viability. Business owners in this industry would be wise to carefully review their insurance needs with a knowledgeable agent or broker.

Frequently Asked Questions

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