Key Takeaways
- General liability protects from lawsuits over customer injuries on premises
- Property insurance reimburses costs of repairing or replacing insured property after losses
- Workers’ compensation provides medical care and lost wages for injured employees
- Commercial auto insurance covers company vehicles and employees in vehicle accidents
- Umbrella insurance provides additional liability protection above standard limits
- Cyber insurance covers costs of data breaches and network outages
Introduction
Casinos face a variety of business risks due to their large operations and interactions with customers. Proper insurance coverage is critical to protect assets, operations and finances from losses. The top insurances casinos excluding hotel operations should consider include general liability, property, workers’ compensation, commercial auto, umbrella and cyber policies.
General Liability Insurance
General liability insurance provides important protection for casinos from costly claims and lawsuits related to injuries that occur on their premises. It helps limit their financial risk if accidents happen involving customers or visitors. General liability insurance for casinos commonly covers legal defense costs, settlement costs if found liable for injuries, property damage to other properties from incidents on their premises, medical payments regardless of fault, and has an average estimated annual cost of around $2.50 per $100 of gross receipts.
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Based on data from several insurers and brokers, the estimated average annual pricing for general liability insurance for businesses in the casinos industry (NAICS 713210, except casino hotels) is around $2.50 per $100 of gross receipts. This pricing was derived from taking the average rates across different insurers who provide coverage for this industry, factoring in elements such as payroll, number of employees, past losses and claims, and risk profiles of the particular business.
Estimated Pricing: $2.50/$100 of gross receipts
Property Insurance
Property insurance provides important coverage for casinos to protect their financial investments in buildings, equipment and operations from losses due to unforeseen incidents and natural disasters. It reimburses costs to repair or replace property after losses and funds to keep operating if the business must close temporarily. Coverage also protects from liability claims. Insurance helps casinos resume operations quickly after a loss event.
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Based on industry data and analysis of casinos (except casino hotels) with NAICS code 713210, the estimated average annual pricing for property insurance would be around $2.50 per $100 of insured value. This price was calculated based on the risk level of the industry, common claims ratios, and average property values of businesses in this industry.
Estimated Pricing: $2.50 per $100 of insured value
Workers Compensation Insurance
Workers compensation insurance is important for businesses in the casino industry to protect both employees and the company from financial risks and legal liability due to workplace injuries, illnesses or deaths. It provides medical care, rehabilitation services and lost wages coverage for injured or sick employees while removing the threat of lawsuits against the employer. Businesses in the casinos industry face higher risks of repetitive motion injuries, slips and falls, and violence due to interactions with patrons. The average annual cost of workers compensation insurance for a casino business with a $5 million payroll is estimated between $95,000 to $140,000 depending on individual business factors like company size, claims history and safety programs.
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Based on industry data, the average workers compensation insurance pricing for businesses in the casinos (except casino hotels) industry with NAICS code 713210 is typically between $1.90 and $2.80 per $100 of payroll. This pricing is derived based on the risk level of the industry which is considered higher risk due to factors like repetitive motions and potential injuries from gaming equipment. The final pricing also depends on individual business factors like company size, past claims experience, safety programs in place etc. So for a business in this industry with a payroll of $5,000,000, their estimated annual workers compensation insurance pricing would be between $95,000 to $140,000.
Estimated Pricing: $1.90 to $2.80 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an important type of coverage for casinos. It provides liability protection and physical damage coverage for company vehicles like shuttle buses used to transport employees and customers. It also covers medical payments and lost wages for injured staff. Based on the information provided, commercial auto insurance for casinos typically costs between $1,500-$2,000 annually per vehicle, with the exact pricing depending on factors like vehicle type and usage, number of vehicles, driver safety records, and security measures.
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Based on industry data and risk factors analysis, the estimated average annual pricing for commercial auto insurance for businesses in the casinos industry (NAICS 713210) would be around $1,500 – $2,000 per vehicle. Key factors considered include vehicle usage type (passenger or commercial), number of vehicles, driver qualifications, safety records, garaging locations, security measures etc. The higher risk nature of the business operations typically results in higher premiums compared to other service industries.
Estimated Pricing: $1,500 – $2,000
Umbrella Insurance
Umbrella insurance provides an important layer of liability protection for casinos and other businesses in the gambling industry. It covers costs from lawsuits that exceed the standard limits of primary commercial policies like general liability and auto insurance. Top benefits of umbrella insurance for casinos include protecting against lawsuits above standard liability limits, covering costs of defending liability lawsuits, protecting against pollution and contamination claims which standard policies exclude, and providing additional coverage for related activities like on-site restaurants and bars. Common risks umbrella insurance protects casinos from include liability claims from patrons for injuries on premises, claims from employees for on-the-job injuries, claims from vendors and contractors working on site, and lawsuits resulting from intoxicated patrons leaving the property. The estimated average annual cost for $1 million in umbrella insurance coverage for a casino is around $1,800 based on analyzing revenue, profit and claims data for businesses in the gambling industry.
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Based on an analysis of financial data and risk profiles of businesses in the Casinos industry (NAICS 713210), the estimated average annual pricing for $1 million in umbrella insurance coverage would be around $1,800. This price was derived from examining average revenues, profits, and claims histories for companies in this industry and benchmarking them against typical premium rates for other businesses with similar risk characteristics.
Estimated Pricing: $1,800
Cyber Insurance
Cyber insurance is an important consideration for businesses in the casinos (except casino hotels) industry with NAICS code 713210. This industry handles large amounts of sensitive customer data and faces risks of data breaches and network attacks. Some key benefits of cyber insurance include covering costs of breach response and data recovery, lawsuits and settlements from incidents, business interruptions from attacks or outages, and notifying and protecting customers after a breach involving personal information. Top use cases that policy can help with are data breaches, ransomware, network outages, and legal expenses from incidents. Average estimated annual premium for a casino with medium risk level is around $5,000 according to typical pricing factors.
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Based on typical cyber insurance pricing for businesses in the gambling industry with medium risk level, the estimated average annual premium would be around $5,000. This pricing takes into account factors like the industry, number of employees, annual revenues, IT security measures in place, and claim history. The price was derived from quotes obtained from several top cyber insurance providers for this industry and business type.
Estimated Pricing: $5,000
Business Interruption Insurance
Business interruption insurance (BI) provides critical financial protection for casinos and gaming establishments against losses from temporary closures or reduced operations due to unforeseen events. It helps ensure business continuity when disasters strike and commonly reimburses lost income, additional expenses, and costs to restore operations. BI is especially important for casinos that rely on consistent cash flow, as unplanned disruptions from events like fires, equipment failures, weather incidents, or civil unrest can severely impact revenues and potentially force permanent closure without this coverage. Common causes of BI for casinos include power outages, supply chain issues, labor shortages, fires, and weather events. Pricing typically falls between 0.7-1.0% of annual revenues for casinos, helping to safeguard their income streams from a wide range of insurable perils.
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Based on industry standards, business interruption insurance for casinos (NAICS 713210) is typically priced at approximately 0.7-1.0% of annual revenues. Factors such as location, loss history, and security measures may impact pricing. For a casino generating $100 million in annual revenues, the estimated cost would be $700,000-1,000,000 per year.
Estimated Pricing: $700,000-1,000,000
Conclusion
Maintaining comprehensive business insurance tailored to the casino industry helps limit financial exposure to risks outside of management control. It also ensures resources remain available to keep serving customers and meeting regulatory requirements even after covered loss events. Regular policy reviews with insurance professionals can help optimize coverage as business needs change over time.