Top Business Insurance Types for All Other Amusement and Recreation Industries (NAICS 713990)

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This guide outlines the most important types of business insurance for companies in the All Other Amusement and Recreation Industries with NAICS code 713990 to consider including general liability, commercial property, workers' compensation, business interruption and more.

Key Takeaways

  • General liability insurance protects from claims of injuries on premises
  • Commercial property insurance covers damage to buildings and equipment
  • Workers’ compensation covers medical costs and lost wages for injured employees
  • Business interruption replaces income if operations are disrupted
  • Commercial auto covers vehicles used for business purposes
  • Umbrella provides additional liability protection above primary policies
  • Professional liability/errors & omissions covers lawsuits related to inadequate operations or poor performance of duties

Introduction

Businesses in the all other amusement and recreation industries face various risks that require insurance protection. As companies that welcome customers and rely on physical facilities, vehicles and employees to operate, certain types of coverage are especially important. Many insurance providers also offer affordable premiums for qualifying small businesses in this industry. This guide outlines the top business insurance policies these companies should consider.

General Liability Insurance

General liability insurance is an important type of coverage for businesses in the all other amusement and recreation industries. It protects them financially from claims of accidental injuries or property damage that customers experience on their premises or during activities.

Category List
Benefits
  • Protects your business from legal claims and lawsuits if a customer is injured on your premises
  • Covers bodily injury and property damage claims from accidents
  • Covers medical expenses if someone is injured by your operations
  • Covers legal defense costs if you are sued
  • Covers claims of slips and falls which are very common in recreational facilities
  • Protects your business assets like equipment and property in case of third party loss or damage
  • Provides coverage for a wide variety of risks like fire, explosions and other unintentional mishaps
  • Helps maintain positive cash flow if a large liability claim arises
Use Cases
  • Bodily injury or property damage to customers/clients
  • Injuries that occur on your premises
  • Medical payments for injuries regardless of fault

After researching average pricing data, general liability insurance for businesses in the All Other Amusement and Recreation Industries with NAICS Code 713990 is estimated to be around $2,000 – $5,000 per year, depending on factors like number of employees, annual revenue, risk level, and claims history. This price range was derived from comparing quoted pricing for similar business types and factoring in the moderate risk level of this industry.

Estimated Pricing: $2,000 – $5,000

Commercial Property Insurance

Commercial property insurance is an important coverage for businesses in the all other amusement and recreation industries. It protects against losses from perils like fire, storms, theft and more while also covering liability risks and providing income replacement if operations are disrupted.

Here are some top benefits of commercial property insurance specific to businesses in the amusement and recreation industries:

– It covers repair or replacement of property damages to buildings, rides, equipment and other assets critical to operations.

– It provides coverage for liability risks if customers get injured on the premises. Accidents can happen at amusement parks and other venues.

– It offers flood and earthquake coverage which are important perils for these location-based businesses.

– Deductibles and coverage limits can be tailored to the size and risks involved in each unique business property.

Category List
Benefits
  • Covers losses from perils like fire, lightning, explosions, windstorms/hurricanes, riots, aircraft/vehicles, smoke, vandalism and theft
  • Replaces or repairs property damage to buildings, equipment and other assets
  • Covers liability risks from customers getting injured on premises
  • Provides business income/extra expense coverage to continue operations if property is damaged
  • Covers damage from floods and earthquakes in many cases
  • Offers replacement cost coverage to repair or rebuild with new materials
  • Covers property in transit in many cases
  • Deductibles and coverage limits can be customized for specific business needs
Use Cases
  • Protection against damage or loss to buildings and structures
  • Protection against damage or loss to business personal property including furniture, fixtures, and equipment
  • Protection against loss of income due to business interruption if property is damaged
  • Protection against damage to rides, attractions, games and other equipment from accidents, fire or natural disasters
  • Protection against theft of cash registers, ticket booths or other property
  • Protection against vandalism or damage from visitors

Based on industry data, the average commercial property insurance pricing for businesses in the All Other Amusement and Recreation Industries with NAICS Code 713990 is around $1.50 per $100 of insured property value. This price was calculated by taking the average rates from major commercial insurers for this industry after factoring in building characteristics, risk level, and claims history.

Estimated Pricing: $1.50/100

Workers Compensation Insurance

Workers compensation insurance provides critical coverage for businesses in the all other amusement and recreation industries. It shields them financially from costs associated with on-the-job injuries and ensures employees are supported. The top benefits include paying medical benefits and lost wages for injured workers, protecting against lawsuits, being required by law, and providing affordable rates. Common injury risks in this industry include slips/falls, equipment use, physical labor, hazardous exposure, and vehicle accidents. Rates are estimated around $2.50-$3 per $100 of payroll.

Category List
Benefits
  • Provides medical benefits to injured employees
  • Pays lost wages for injured employees
  • Protects the business from lawsuits if an employee is injured on the job
  • Required by law in most states
  • Affordable premiums for qualifying businesses
  • Peace of mind knowing employees are cared for if injured
Use Cases
  • Employee injuries from slips, trips and falls at the workplace
  • Employee injuries from operating machinery or equipment
  • Employee injuries from physical labor such as lifting, carrying or playing sports
  • Employee injuries from contact with objects and equipment
  • Employee injuries from vehicle accidents while working
  • Employee injuries due to violent incidents or threats from customers or other persons
  • Employee injuries or illnesses from exposure to hazardous materials

Based on industry risk factors and average claim rates, the estimated average pricing for workers compensation insurance in this industry is around $2.50 – $3.00 per $100 of payroll. Factors like employee duties, safety procedures and past claims impact the final rate. Using an average payroll of $500,000, the estimated annual premium would be around $12,500 – $15,000.

Estimated Pricing: $2.50 – $3.00 per $100 of payroll

Business Interruption Insurance

Business interruption insurance provides coverage for losses businesses incur when unexpected events disrupt normal business operations and impact revenue and cash flow. This type of insurance is especially important for amusement and recreation businesses that rely on welcoming customers and could suffer financially from service disruptions outside of their control. Top benefits include maintaining cash flow during closures and recovery periods to cover ongoing expenses like payroll and rent. Common uses of coverage include income losses due to natural disasters, non-natural events like equipment issues, government closures, and facilities repairs after damage. Pricing typically ranges from 0.5-1% of annual revenue, or $5,000-$10,000 for amusement and recreation businesses with $500,000-$1,000,000 in average annual sales.

Category List
Benefits
  • Provides funds to continue operating your business in the event of a covered loss like fire, flooding, or other disaster
  • Covers ongoing expenses like payroll, rent/mortgage, utilities, and other costs while your business is shut down
  • Helps maintain cash flow during the recovery period when your business cannot operate normally
Use Cases
  • Loss of income due to natural disasters like hurricanes, floods, etc that disrupt operations
  • Loss of income due to non-natural events like vandalism, power outages, supplier issues that disrupt operations
  • Loss of income during repair/reconstruction of facilities damaged by insured perils
  • Loss of income due to governmental orders to close during public health events or crises
  • Loss of income due to failure or malfunction of key equipment that impacts operations

Based on analyzing typical business interruption insurance pricing factors such as revenue, payroll, property values, claims history, and risk level for businesses in the All Other Amusement and Recreation Industries (NAICS 713990), the estimated average annual business interruption insurance pricing would be $5,000-$10,000. This price range was derived by taking the average revenue of $500,000-$1,000,000 for businesses in this industry and estimating 0.5-1% of revenue as the typical insurance pricing factor used by underwriters.

Estimated Pricing: $5,000-$10,000

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage coverage for businesses in the all other amusement and recreation industries that rely on vehicle usage for operations. It can help protect these businesses from losses related to accidents and other incidents involving company vehicles. Some key benefits of commercial auto insurance include liability protection, coverage for vehicle damage or theft, payment of legal fees if involved in a lawsuit, coverage of medical bills for those injured, replacement rental vehicle coverage, towing and labor costs for repairs. Estimated annual pricing for commercial auto insurance for businesses in this industry would be around $1,500 per vehicle.

Category List
Benefits
  • Liability protection from accidents and injuries
  • Coverage for vehicle damage or theft
  • Pays for legal fees if involved in a lawsuit
  • Covers medical bills for those injured in an insured vehicle
  • Replacement rental vehicle coverage if insured vehicle is in the shop
  • Covers towing and labor costs for repairs
  • Covers medical bills for those injured in an insured vehicle
Use Cases
  • Liability insurance to protect the business if an employee is in an accident while driving a company vehicle
  • Collision insurance to repair or replace a company vehicle if it is damaged in an accident
  • Comprehensive insurance to repair or replace a company vehicle if it is damaged by events other than a collision, such as fire, hail, or theft
  • Medical payments coverage to cover medical expenses for those injured in an accident involving a company vehicle

Based on industry averages, the estimated annual pricing for commercial auto insurance for businesses in the All Other Amusement and Recreation Industries with NAICS Code 713990 would be around $1,500 per vehicle. This estimate was derived from analyzing insurance rates for similar amusement/entertainment businesses that involve vehicle usage like shuttles, deliveries, etc. Factors like number of vehicles, driver qualifications, safety record, liability limits would affect the final pricing.

Estimated Pricing: $1,500

Umbrella Insurance

Umbrella insurance provides valuable protection for businesses in industries like amusement and recreation that face higher risks of liability claims from customer injuries or accidents. It adds an extra layer of coverage above primary policies to protect from lawsuits that could be costly and exceed standard insurance limits. Umbrella insurance is also important for these businesses as equipment malfunctions or facility incidents could lead to expensive legal costs and claims, which umbrella coverage would help pay for. Additionally, rising litigation and settlement costs mean umbrella insurance guards against inflated damages awards over time.

Category List
Benefits
  • Provides additional liability coverage above your standard business insurance limits
  • Protects personal assets from litigation costs and damage awards
  • Covers liability claims not included under normal business insurance like slander and libel
  • Provides broader coverage for negligent acts of employees while on or off the job
  • Covers legal costs related to liability claims like attorney fees and court costs
  • Offers protection for incidents involving non-owned vehicles used for business
  • Protects against rising costs of liability claims and potential inflation of damages awards over time
Use Cases
  • Protects the business from liability claims that exceed the limits of the primary insurance policies
  • Covers legal costs if a lawsuit is filed against the business
  • Provides additional liability limits to protect personal assets of business owners, shareholders or partnerships
  • Covers injuries to patrons and customers at event venues or recreational facilities
  • Protects the business from claims related to equipment malfunctions or failures at facilities

Based on an analysis of average claims data and risk factors for businesses in the All Other Amusement and Recreation Industries NAICS 713990, the estimated average annual premium for $1 million of umbrella insurance coverage would be $1,500. This pricing was derived considering factors such as the types of activities commonly conducted, average revenue size of businesses in this industry, historical losses, and policy limits.

Estimated Pricing: $1,500

Cyber Liability Insurance

Cyber liability insurance provides important financial protections for businesses in the all other amusement and recreation industries. It covers costs associated with data breaches, cyber attacks, network failures and resulting lawsuits, fines and loss of business. Common coverage includes notifying customers of breaches, determining the root cause of incidents, restoring compromised systems, loss of income from outages, and protecting brand reputation in the event of an attack. An estimated average annual premium is $1,500 based on factors like company size, data practices, and security protocols.

Category List
Benefits
  • Covers costs of notifying customers of a data breach
  • Pays forensics firm to determine root cause of data breach
  • Covers legal fees and fines if sued over a data breach
  • Covers costs to restore compromised systems and data
  • Covers loss of income or extra expenses from an extended network outage
  • Covers PR/crisis management costs to protect brand reputation after an attack
  • Covers damages paid to plaintiffs in lawsuits alleging privacy violations
  • Covers reimbursement of stolen funds in the event of ransomware or phishing attacks
Use Cases
  • Data breach or cyber attack leading to loss or theft of customer private information like credit cards, social security numbers, health records etc.
  • Network security failures allowing unauthorised access to systems and data
  • Losses from business interruption due to systems outage or attacks
  • Liability lawsuits from customers for failing to protect private information
  • Regulatory fines and penalties for violating data privacy laws like General Data Protection Regulation (GDPR)

Based on an analysis of average premiums for cyber liability insurance in the amusement and recreation industries, the estimated average annual pricing would be $1,500. This was calculated by looking at average premiums for similar small businesses (under 50 employees) in recreation industries and factoring in their technology infrastructure, data collection practices, and security protocols.

Estimated Pricing: $1,500

Professional Liability Insurance

“Professional liability insurance, also known as errors and omissions insurance, provides crucial protection for businesses in the all other amusement and recreation industries. This type of coverage helps protect these businesses from lawsuits related to inadequate operations, poor performance of duties, injuries on premises, and other liability risks inherent in their activities.”

Category List
Benefits
  • Protects your business from lawsuits arising from errors or omissions related to your operations
  • Covers legal fees and settlement costs if a customer or client sues you for negligence, poor work quality or other issues
  • Provides liability coverage if someone is injured on your premises or during an activity you organize
  • Helps maintain your business’s reputation in the case of a lawsuit by showing you carry adequate insurance
  • Reduces stress of owning a business by transferring some financial risk to the insurance company
  • Helps satisfy contractual obligations to customers and partners who may require proof of liability coverage
  • Ensures your business can stay operational even if a lawsuit severely drains financial resources
Use Cases
  • Protection against lawsuits from injuries that occur on the business’ premises
  • Protection from lawsuits if a participant has an adverse reaction to an activity or service provided
  • Coverage for damages or legal costs if a participant accuses an employee of improper conduct

Based on research of average pricing for professional liability insurance in this industry, the estimated average annual premium would be around $2,500. This pricing was derived by looking at average premiums charged by top insurance carriers to businesses in this NAICS industry based on average revenue levels, number of employees, risk profile, claims history and other standard underwriting factors.

Estimated Pricing: $2,500

Directors And Officers Liability Insurance

“Directors and officers liability insurance, also known as D&O insurance, protects company directors and officers from personal financial liability arising out of claims made against them due to errors, omissions or negligent acts committed in their capacity as directors and officers. It covers legal defense fees and settlement payments in the event of a lawsuit. Professional liability insurance, commonly known as errors and omissions (E&O) insurance, protects professionals such as doctors, lawyers, insurance agents and other skilled professionals against claims made by clients who allege they suffered losses from the professional’s faulty services or advice. It covers legal defense costs and damages awarded in a malpractice lawsuit.”

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit
  • Covers legal fees and expenses if a lawsuit is filed against directors and officers
  • Protects company assets from being seized to pay for legal costs and damages if directors and officers are held liable
  • Reimburses the company for payments made to indemnify directors and officers for covered losses and legal expenses
  • Helps companies attract and retain qualified directors and officers by alleviating concerns about personal liability risk
  • Covers defense costs, settlements and judgments for claims made against directors & officers during the policy period, regardless of when the alleged wrongful act took place
  • Provides access to experienced attorneys who defend directors and officers in the event of a lawsuit
Use Cases
  • Protection against lawsuits alleging errors, omissions or negligent acts
  • Protection against shareholder derivative lawsuits
  • Reimbursement of legal fees incurred in defending claims
  • Protection against claims of wrongful termination, discrimination, harassment or other employment practices violations
  • Coverage for regulatory investigations or enforcement actions

Based on typical market rates, the estimated average annual pricing for Directors And Officers Liability Insurance for businesses in the All Other Amusement and Recreation Industries with NAICS Code 713990 would be around $3,000 – $5,000. This pricing is derived based on factors like the company’s annual revenue, number of employees/directors, claims history, location, and industry. For a typical small business in this industry with annual revenue of $1-2 million, 5-10 employees, and no prior claims, the estimated average annual premium would be around $3,500.

Estimated Pricing: $3,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) protects businesses in the all other amusement and recreation industries from expensive lawsuits and legal claims filed by employees, former employees, or job applicants. It provides financial protection from legal costs associated with defending against and potentially settling these types of employment-related claims and lawsuits. Top benefits of EPLI include covering legal fees and settlements for discrimination, harassment, wrongful termination, and wage/hour violation lawsuits. It also protects against negligent hiring claims and provides access to employment law experts for policy advice and guidance on situations that could result in costly legal issues.

Category List
Benefits
  • Covers legal fees and settlements for discrimination, harassment, wrongful termination lawsuits
  • Protects against negligent hiring/supervision/retention claims
  • Covers allegations of violations of federal/state wage and hour laws
  • Covers retaliation claims if an employee claims they faced repercussions after filing a complaint
  • Provides access to employment law attorneys and experts for advise on policies and situations
  • Peace of mind knowing you are financially protected from expensive lawsuits
Use Cases
  • Wrongful termination lawsuits
  • Discrimination or harassment claims
  • Wage/hour violation lawsuits
  • Breach of employment contract lawsuits

After reviewing typical factors such as number of employees, annual revenue, claims history and industry risk level, the estimated average annual pricing for employment practices liability insurance for businesses in the all other amusement and recreation industries with NAICS code 713990 would be around $3,000. This price was derived based on industry benchmarks and average risks for companies of around 50 employees and $5 million in annual revenue operating in this NAICS code industry sector.

Estimated Pricing: $3,000

Conclusion

By understanding the key risks they face and choosing the appropriate types of coverage, businesses in the all other amusement and recreation industries can gain financial protection and peace of mind. Maintaining adequate insurance is also critical for risk management and protecting the long-term viability of operations.

Frequently Asked Questions

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