Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises.
- Property insurance covers buildings, equipment and lost revenue from disasters.
- Workers’ comp covers medical bills and lost wages for on-the-job injuries.
- Commercial auto insures vehicles used for transportation and emergencies.
- Business interruption reimburses lost income during shutdowns.
- Equipment breakdown repairs or replaces costly machinery if it fails.
- Professional liability protects against claims of negligence from services/injuries.
- Umbrella insurance provides additional liability protection above commercial policies.
- Snowmaking equipment insurance covers repairs/losses for this crucial asset.
- Cyber liability protects sensitive customer data in the event of a breach.
Introduction
As a skiing facility operator, it is important to understand the various types of business insurance available to protect the business from both financial and legal risks. Key policies to consider include general liability, property, workers’ compensation, commercial auto, business interruption, equipment breakdown, professional liability, umbrella, snowmaking equipment and cyber liability insurance.
General Liability Insurance
General liability insurance provides essential protection for ski resorts and other snow sport facilities. It helps defend against lawsuits and cover costs associated with accidents and injuries that may occur at the business.
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Based on industry statistics, the average general liability insurance premium for skiing facilities in the United States is around $12 per $1,000 of gross receipts. For a skiing facility with an average of $2 million in annual gross receipts, the estimated general liability insurance premium would be $12 * $2,000 = $24,000 per year.
Estimated Pricing: $24,000
Property Insurance
Property insurance provides crucial financial protection for skiing facilities and businesses in the skiing industry against unexpected property losses or damage from various risks. It helps ensure business continuity and stability even after experiencing covered catastrophic events by covering costs of repairs, rebuilding and lost revenues. Key benefits of property insurance for skiing facilities include protection from natural disasters common to mountain regions like avalanches and floods, liability protection if a customer gets injured on premises, and reimbursement for loss of business income if operations have to be temporarily suspended for covered repairs. Pricing is usually based on the total insured property value, averaging $3-5 per $100, with larger resorts paying closer to $5 per $100 due to more extensive property assets.
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Based on average statistics, property insurance for businesses in the skiing facilities (NAICS 713920) ranges from $3 to 5 per $100 of insured property value. Premiums are typically calculated annually based on the total insurable property value being insured. Ski resorts will often pay around $4-5 per $100 since their properties tend to be more extensive with costly ski lifts, facilities, and equipment. Smaller ski schools or rentals may pay closer to $3 per $100 given their smaller property exposure.
Estimated Pricing: $3-$5 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical benefits and protections for skiing facility businesses and their employees. It covers medical expenses and lost wages for employees injured on the job from common risks like collisions, falls, and equipment operation. This protects the business from lawsuits while demonstrating commitment to workforce safety and wellbeing. Injuries are common in this hazardous industry. Covering costs upfront provides predictability compared to potential liability claims. Maintaining safety over time can also help lower insurance premiums.
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Based on industry data and risk factors, the estimated average pricing for workers’ compensation insurance for skiing facilities is between $4 to $6 per $100 of payroll. The rates are derived from states’ experience modification factor (EMF) which reflects a business’s past claim history. Skiing industry typically sees higher injury rates so premiums tend to be on the higher end. Location also impacts rates with states like Colorado, Utah, Vermont seeing higher costs than elsewhere due to frequency and severity of claims.
Estimated Pricing: $4-$6/$100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides important liability protection and coverage for vehicles used in ski resort operations. It helps protect the business financially in the event of accidents and ensures daily activities can continue smoothly. Additional paragraphs include:
Commercial auto insurance is especially important for skiing facilities due to the various vehicles they operate for transportation, maintenance, and emergency response purposes on mountainous terrain. Proper insurance coverage can help protect the business from financial liability in the event of an accident. Based on industry data, the average commercial auto insurance pricing for businesses in the skiing facilities industry with NAICS code 713920 is around $1,500 per vehicle per year. Key factors that influence pricing include the number of vehicles, driver age and experience, safety records, types of vehicles (e.g. snowmobiles, ATVs, etc.), and geographic location.
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Based on industry data, the average commercial auto insurance pricing for businesses in the skiing facilities industry with NAICS code 713920 is around $1,500 per vehicle per year. Key factors that influence pricing include the number of vehicles, driver age and experience, safety records, types of vehicles (e.g. snowmobiles, ATVs, etc.), and geographic location.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance protects the income of businesses like ski facilities from losses due to events outside of their control by reimbursing operating expenses and lost profits while operations are disrupted. It is an important coverage for ski facilities due to their reliance on predictable winter weather and conditions for generating revenue through skiing and other winter activities. Examples of top use cases where business interruption insurance would apply for ski facilities include loss of income due to lack of snow, damage from fires or storms, power outages preventing lift operations, or health orders limiting activities. Pricing is typically estimated around 1% of annual revenues for full lost profits and expenses coverage up to 12 months.
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Based on typical pricing models, business interruption insurance for ski facilities would be priced at around 1% of annual revenues. Given the average annual revenue for NAICS 713920 Skiing Facilities is around $3 million, the estimated annual premium would be around $30,000. This pricing is derived from common business interruption coverage providing lost profits for up to 12 months.
Estimated Pricing: $30,000
Equipment Breakdown Insurance
This reference provides useful information on equipment breakdown insurance for skiing facilities. It outlines the key benefits of coverage such as repair/replacement costs, property damage coverage, lost income protection, additional expenses coverage, no deductible for equipment issues, upgrade coverage, and damaged stock/supply coverage. It also details common use cases like lifts/transport failures, HVAC/boiler issues, refrigeration accidents, and snow-making/grooming breakdowns. Finally, it provides an estimated $1,500 annual premium amount for $100,000 of protection. It emphasizes how equipment failures could seriously impact operations and finances for ski resorts without this specialized protection to help ensure continuity after accidents.
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Based on typical equipment such as ski lifts, snow machines, buildings and their utilities used in skiing facilities, the estimated average annual premium for $100,000 of equipment breakdown insurance would be around $1,500. This was calculated based on 1% of insured value which is a standard calculation for such specialized property insurance given the risks involved with operating skiing facilities.
Estimated Pricing: $1,500
Cyber Liability Insurance
As skiing facilities collect sensitive customer information and are at risk of cyber incidents, cyber liability insurance provides an important way to mitigate financial risks from data breaches or other cyber events.
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Based on the average size and risk profile of businesses in the skiing facilities industry (NAICS Code: 713920), the estimated average annual premium for a cyber liability insurance policy would be around $2,500. This estimation takes into account factors such as annual revenue, number of payment card transactions, cyber security practices, and claim history. The pricing is also benchmarked against similar policy structures and risk profiles in adjacent industries.
Estimated Pricing: $2,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides crucial coverage for businesses in the skiing facilities industry. It protects them from costly lawsuits related to injuries that may occur on ski slopes or within their facilities. Some key benefits of this type of insurance for ski facilities include covering legal expenses if sued, demonstrating financial responsibility to customers, protecting the business owners and employees, covering claims that may arise years after an incident, and providing access to valuable risk management and loss prevention services.
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Based on industry research, the estimated average annual pricing for professional liability insurance for businesses in the skiing facilities industry with NAICS code 713920 is $3,500. This price was derived from analyzing insurance rates from several top providers for this industry and taking into account factors like number of employees, annual revenue, claims history, and types of activities.
Estimated Pricing: $3,500
Umbrella Insurance
Umbrella insurance provides additional liability protection above a business’s commercial policies. For ski resorts and other winter outdoor recreation facilities, umbrella insurance is highly recommended due to the inherent risks of injuries from winter activities like skiing and snowboarding. High-value claims for traumatic brain injuries, spinal cord injuries or wrongful death accidents are not uncommon at ski resorts. The additional protection of umbrella insurance can help shield assets and financial stability in these situations. Umbrella insurance is especially important for these businesses due to the risks of litigation from class action lawsuits or catastrophic losses if multiple guests are injured in the same incident.
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Based on typical factors like payroll, revenue, property values and claims history, the estimated average annual pricing for a $1 million umbrella insurance policy for businesses in the skiing facilities industry with NAICS code 713920 would be around $1,500. This price was derived from industry benchmark data and accounting for the risks associated with winter outdoor recreational activities.
Estimated Pricing: $1,500
Snowmaking Equipment Insurance
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Snowmaking is crucial for ski resorts and facilities to ensure enough snow coverage for skiing activities. Having proper insurance coverage for expensive snowmaking equipment can help mitigate financial risks and losses in case the equipment is damaged by accidents, storms or regular wear and tear.
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Based on average data from top insurance providers for ski facilities (NAICS 713920), the estimated average annual pricing for insuring snowmaking equipment is around $5,000. This price was derived by taking into account factors like the value and age of equipment, number of hoses and guns, past claims experience, and safety practices implemented.
Estimated Pricing: $5,000
Conclusion
Proper insurance coverage helps ski resorts and other winter recreation businesses maintain financial stability even after experiencing covered accidents, injuries, property damage or disruptions to operations. It also demonstrates your commitment to guest and worker safety. Consult with an insurance agent to review your specific risks and needs to develop an optimal business insurance strategy and understand estimated pricing ranges for each coverage.