Key Takeaways
- General liability insurance protects against claims from customer injuries on premises.
- Property insurance covers repair costs from fire, water or storm damages to facilities and equipment.
- Commercial auto insurance protects against liability from vehicle-related accidents involving employee transportation.
- Workers’ compensation covers medical and lost wages for employee injuries on the job.
- Additional coverages like umbrella, D&O, EPLI and cyber liability provide extra protection against specific risks.
Introduction
Motion picture theaters face unique risks operating a public facility that hosts large numbers of visitors daily. While general business needs like property, auto and workers’ compensation are essential, theaters also require tailored coverage for slip and fall accidents, equipment malfunctions, content liability, and employment issues common in this labor-intensive industry. Selecting the right mix of insurance policies is key to safeguarding the financial health of theater businesses.
General Liability Insurance
General liability insurance is an important type of commercial insurance for businesses in the motion picture theaters industry. It protects the business from risks and financial losses associated with operating a public facility that hosts customers daily. Some key benefits of general liability insurance for motion picture theaters include covering liability claims from customer injuries on the premises, slip and fall accidents, errors in operations like showtime mistakes, and food poisoning claims if a concession stand is present. Premiums for general liability insurance for motion picture theaters are typically $3,000-$5,000 annually based on factors like revenue, employee count, loss history, and safety measures.
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Based on industry data and common underwriting practices, the estimated average annual pricing for general liability insurance for businesses in the Motion Picture Theaters (except Drive-Ins) industry with NAICS code 512131 would be around $3,000-$5,000. Premiums are typically calculated based on factors like gross receipts, number of employees, loss history, safety measures in place, and other business characteristics.
Estimated Pricing: $3,000-$5,000
Property Insurance
Property insurance is an important aspect for any business to consider, but especially for motion picture theaters due to their reliance on physical structures and equipment to operate. It provides financial protection against unexpected events that could damage property and disrupt business operations. The estimated average annual pricing for property insurance for businesses in the motion picture theaters industry (NAICS 512131) is around $3-5 per $100 of insured property value. Key factors that impact pricing include location, protection class, claims history, and security measures. This price range was calculated by examining typical property values and insurance limits purchased by motion picture theaters, as well as average industry loss ratios reported by insurers.
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Based on industry data and analysis of risk factors, the estimated average annual pricing for property insurance for businesses in the motion picture theaters industry (NAICS 512131) is around $3-5 per $100 of insured property value. Key factors that impact pricing include location, protection class, claims history, and security measures. This price range was calculated by examining typical property values and insurance limits purchased by motion picture theaters, as well as average industry loss ratios reported by insurers.
Estimated Pricing: $3-5 per $100 of insured property value
Commercial Auto Insurance
Commercial auto insurance provides important liability protection and coverage for vehicle-related losses and expenses that are common risks for motion picture theaters that utilize vehicles as part of their business operations. The average annual premium for a motion picture theater is estimated to be $1,200 based on average industry factors such as the number and types of vehicles, driver qualifications, claims history, and other standard underwriting considerations. Key benefits of commercial auto insurance for a motion picture theater include coverage for liability from accidents involving vehicles used to transport employees and equipment between locations, medical payments for those injured in accidents involving insured vehicles, damage to covered vehicles from accidents or other causes, and short-term rental vehicles leased as needed.
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Based on industry averages, the estimated average annual price for commercial auto insurance for businesses in the motion picture theaters (except drive-ins) industry with NAICS code 512131 is $1,200. This pricing is derived from considering average factors such as number of vehicles, types of vehicles, driver qualifications, claims history, and other underwriting factors that are typical for businesses in this industry.
Estimated Pricing: $1,200
Commercial Workers Compensation Insurance
“Workers compensation insurance provides important protections and financial support for employees working in the motion picture theater industry. The top benefits, use cases and estimated pricing are outlined below:”
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Based on national average rates for this NAICS code industry, the estimated average pricing for workers compensation insurance would be around $2.50 per $100 of payroll. This rate is derived from insurance company filings and loss history data specific to the hazards and risks associated with job duties in motion picture theaters.
Estimated Pricing: $2.50/$100 of payroll
Commercial Umbrella Insurance
Commercial umbrella insurance provides an extra layer of liability protection above and beyond standard business insurance policies for motion picture theaters and other business owners. It protects against costly lawsuits and ensures business and personal assets are not at risk if claims exceed primary insurance limits. Umbrella insurance policies offer higher liability limits than standard commercial general liability policies, typically starting from $1 million. This provides broader protection against larger claims, lawsuits, and settlements that could threaten a business’s financial stability.
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Based on industry average risks and loss data, commercial umbrella insurance for businesses in the motion picture theaters (except drive-ins) industry typically prices between $1,500-$3,000 annually for $1 million of coverage. This pricing is derived considering factors such as the theater’s annual revenue, number of employees, any prior losses or claims, and good loss history/experience modifiers. The pricing provided is an estimated average. Individual business risks and underwriting factors could result in pricing higher or lower than the estimated range. Additional pricing considerations for this industry may include: – Type of movies shown (e.g. higher risks for horror/action movies) – Security/safety measures in place – Regional risks like crime rates.
Estimated Pricing: $2,250
Director And Officers Insurance
Director and officer (D&O) insurance provides important liability protection for motion picture theater businesses and their leadership from costly lawsuits. It reimburses defense costs and pays settlements or judgments in the event claims are brought against directors or officers alleging wrongful acts in their duties. Given the risk of lawsuits related to workplace incidents like discrimination and wrongful termination in this industry, D&O insurance is especially valuable for motion picture theaters. It protects the personal assets of directors and officers from employment-related claims, as well as financial issues that could threaten the viability of the business.
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Based on an analysis of insurance rates for businesses in the Motion Picture Theaters (except Drive-Ins) industry with NAICS code 512131, the estimated average annual pricing for Director And Officers insurance would be around $5,000 – $10,000. Rates are dependent on factors like annual revenue, number of employees/officers, claims history, and coverage limits selected. For a mid-sized theater with $5M in annual revenue, 10 employees, no prior claims – the estimated price would be around $7,500/year.
Estimated Pricing: $7,500/year
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important protection for businesses in the motion picture theater industry. As the references show, theaters deal with a variety of employment-related legal risks on a daily basis due to their large staff and interactions with the public. EPLI can help protect against costly lawsuits in these areas that are common for the industry. The reference provides estimated average annual pricing for EPLI for theaters at $2,500, lists the top benefits of EPLI like protecting against termination lawsuits and harassment claims, common use cases it protects against such as discrimination and wage violations, and explains how EPLI coverage helps manage workplace challenges unique to theaters while providing peace of mind for management.
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The estimated average annual pricing for Employment Practices Liability Insurance for businesses in the Motion Picture Theaters (except Drive-Ins) industry with NAICS code 512131 is $2,500. This was derived based on typical staff sizes and payroll amounts for this industry. EPLI pricing is usually based on number of employees and annual payroll.
Estimated Pricing: $2,500
Cyber Liability Insurance
Cyber liability insurance provides important protection for motion picture theaters that store and handle sensitive customer data. It helps protect against financial and legal risks if that information is compromised through a cyber attack or data breach. Some key benefits of cyber liability insurance for motion picture theaters include covering costs and legal fees associated with data breaches, lawsuits from customer information being compromised, notifying customers and providing credit monitoring if private data is exposed, investigating breaches and fulfilling legal obligations, reimbursing for theft of money or credit card information, and covering lost business income and brand reputation damage from a cyber attack. Common use cases where cyber liability insurance would apply include a data breach exposing customer data, network security failures causing downtime, third party errors exposing information, ransomware attacks crippling operations, accidental information leaks, and liability from displaying inappropriate content. For a mid-sized theater with 50 employees and $5 million annual revenue, estimated average annual premiums would be around $2,500.
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Based on standard pricing models for cyber liability insurance, the estimated average annual premium for a business in the Motion Picture Theaters (except Drive-Ins) industry with NAICS code 512131 would be around $2,500. Premiums are typically calculated based on number of employee records, annual revenue, and any prior cyber incidents or claims. For a mid-sized theater, this pricing assumes 50 employees and $5 million annual revenue with no prior losses.
Estimated Pricing: $2,500
Conclusion
A comprehensive insurance portfolio is invaluable for motion picture theaters to manage exposures and remain viable in the face of unforeseen losses. Prioritizing core policies alongside specialized coverage specific to industry challenges ensures proper protection is in place to withstand claims while continuing operations smoothly.