Key Takeaways
- General liability insurance provides protection from lawsuits if a patron is injured on your premises.
- Property insurance covers costs to repair or rebuild if your facilities are damaged in events like fires or storms.
- Commercial umbrella insurance offers added liability protection above primary policies’ limits.
- Workers’ compensation covers medical expenses and lost wages for employees injured on the job.
- Commercial auto insurance protects businesses using vehicles as part of operations.
- Business interruption insurance helps cover costs if your business must close due to covered causes.
Introduction
As a theater company or dinner theater business, it is important to have adequate insurance coverage in place to protect your operations, assets, employees and finances from various risks. This article examines the top business insurance options theater companies and dinner theaters with NAICS code 711110 should consider including general liability, property, commercial umbrella, workers’ compensation, commercial auto and business interruption insurance.
General Liability Insurance
General liability insurance is an important coverage for businesses in the theater companies and dinner theaters industry (NAICS 711110). It provides protection from lawsuits, damage claims, and other costs if a patron or member of the public is injured on the premises or through incidents related to business operations. Some key benefits of general liability insurance for this industry include covering legal defense costs if sued, paying medical expenses for injuries on the property, and protecting the business from financial hardship due to unforeseen lawsuits. Top use cases where the coverage applies include patron injuries during performances, slips and falls, wrongful acts leading to claims, property damage from incidents like fires, and liability from contractor accidents on site. Estimated average annual pricing is between $2,500-$5,000 depending on business factors.
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Based on typical factors such as number of employees, annual revenue, prior claims history, and risk assessment, the estimated average annual pricing for general liability insurance for businesses in the NAICS 711110 Theater Companies and Dinner Theaters industry is around $2,500-$5,000. This pricing was derived from averaging quotes from multiple insurers for businesses of varying sizes and operations within this industry.
Estimated Pricing: $2,500-$5,000
Property Insurance
This reference provides useful information about the top benefits, use cases, and estimated pricing of property insurance for theater companies and dinner theaters with NAICS code 711110. It outlines key protections property insurance offers like coverage for fire damage, water damage, replacement costs, liability, and lost income. Examples of how it can be used to protect equipment, cover rebuilding after disasters, replace lost income if the business must close, and cover liability if a prop causes injury are also included. An estimate of $25,000-$30,000 annual premium is given based on average payroll and facility value for the industry.
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Based on an average payroll of $2 million and facility value of $5 million for theater companies and dinner theaters in NAICS code 711110, the estimated annual property insurance pricing would be around $25,000-$30,000. This was calculated using industry standard rates of 0.5-1% of property value for building coverage and 0.5-1% of payroll for business personal property coverage.
Estimated Pricing: $25,000-$30,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable liability protection for theater companies and dinner theaters against risks inherent in their operations such as performances, events, and premises activities. It layers on top of primary policies to offer enhanced coverage for losses exceeding primary limits. Theater companies and dinner theaters face risks of catastrophic losses from lawsuits and need umbrella insurance to protect their assets and finances. Umbrella insurance also covers legal costs and offers additional liability limits. The top benefits of umbrella insurance for these businesses are that it provides protection from large jury awards and settlements over primary limits, covers various liability claims, protects owners’ personal assets, and offers worldwide coverage for events outside premises.
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Based on industry risk factors and average claims data, commercial umbrella insurance for businesses in the theater companies and dinner theaters industry (NAICS code: 711110) would be priced at an average of $2,500-$5,000 annually. Prices are dependent on factors like gross receipts, number of employees, types of performances/shows, and loss history. With an average of 50-100 employees and $2-5M in annual gross receipts, most businesses in this industry would expect to pay around $3,500 per year for a $1M commercial umbrella policy.
Estimated Pricing: $3,500
Workers Compensation Insurance
Workers compensation insurance is a critical coverage for any theater company or dinner theater business to ensure protection for employees against on-the-job injuries and for the business from liability risks. The benefits provided include medical expenses, lost wages coverage, reduced liability risks, and access to job training for injured workers. Key use cases where coverage applies include injuries to actors, stage crew, dancers, and from risks like falling sets. The estimated annual premium for a small to mid-sized business in this industry would be around $12,500 based on average payroll costs.
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Based on national average workers compensation insurance rates for the NAICS code 711110 Theater Companies and Dinner Theaters industry, the estimated average annual premium would be around $2.50 per $100 of payroll. This rate is derived from statistical data on employee injury rates and average claim costs for jobs within this industry classification. Using the national average payroll of $500,000 for a small to mid-sized business in this industry, the estimated annual premium would be $12,500.
Estimated Pricing: $12,500
Commercial Auto Insurance
Commercial auto insurance provides important protections for businesses in the theater companies and dinner theaters industry. It offers coverage for vehicles used to transport equipment, performers, and food between locations as well as liability protection if an accident occurs while using a vehicle for authorized business purposes. Maintaining adequate commercial auto coverage through insurance of owned, rented, and non-owned vehicles helps protect these businesses financially in the event of an accident, with estimated average annual pricing of around $2,500 per vehicle.
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Based on typical factors such as number of vehicles, drivers, liability limits and driving records, the estimated average annual pricing for commercial auto insurance for businesses in the theater companies and dinner theaters industry (NAICS Code 711110) is around $2,500 per vehicle. This pricing assumes 1-5 vehicles are covered with basic liability limits of $1,000,000 and no major violations on driver records in the past 3 years.
Estimated Pricing: $2,500
Business Interruption Insurance
Business interruption insurance provides crucial financial support to theater companies and dinner theaters if unexpected events prevent them from operating and generating revenue. It helps cover fixed costs and lost income to keep the business afloat during recovery from disruptions such as fire, flooding, utility failures, public health orders, and other covered causes of loss. These policies are especially important for theaters because closures or disruptions to their operations could threaten their ability to survive until they can fully reopen. Standard coverage amounts to 1-2% of annual revenue but many consider it worthwhile to protect against financial hardship during recovery from unexpected closures and disruptions.
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Based on industry research, business interruption insurance for theater companies and dinner theaters typically costs between 1-2% of annual revenue. For a theater company with $2 million in annual revenue, their estimated business interruption insurance pricing would be $20,000-40,000 per year. This price was derived based on standard industry pricing models that take into account factors like company revenue, location risks, claims history and coverage details.
Estimated Pricing: $20,000-$40,000
Conclusion
Maintaining proper insurance coverage through policies like general liability, property, commercial umbrella, workers’ compensation, commercial auto and business interruption insurance can help theater companies and dinner theaters with NAICS code 711110 operate smoothly and remain financially stable even when unfortunate events occur. It is wise for business owners in this industry to consult with insurance professionals to ensure they have the recommended types and sufficient levels of coverage in place tailored to their specific risks and needs.