Key Takeaways
- General liability insurance protects against lawsuits from visitor injuries.
- Property insurance covers damage to buildings, rides and other assets.
- Workers’ compensation covers employee injury claims and medical costs.
- Commercial auto insures vehicles used for park operations.
- Business income protects lost revenue during closures.
Introduction
As businesses in the amusement and theme park industry face unique risks, it’s important to have the proper insurance protections in place. This article outlines the top business insurance types amusement parks with NAICS code 713110 should consider.
General Liability Insurance
General liability insurance is an important type of coverage for amusement and theme parks. It provides financial protection for businesses in the industry from lawsuits related to injuries that commonly occur at these locations due to accidents, slips and falls, or issues like ride malfunctions.
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Based on historical pricing data for businesses in the Amusement and Theme Parks industry (NAICS Code 713110), the estimated average annual price for general liability insurance is around $12,000 – $15,000 per year. Premiums are calculated based on several risk factors including total annual revenue, number of employees, number and types of rides/attractions offered, prior claims history, safety record and protocols. Larger parks with higher revenue and more rides/attractions can generally expect to pay closer to the higher end of the range.
Estimated Pricing: $12,000 – $15,000
Property Insurance
Property insurance provides crucial financial protection for amusement and theme parks against losses from unforeseen incidents and disasters that can severely damage their valuable infrastructure, rides and assets. It ensures funds are available to quickly cover rebuilding costs and help parks reopen their operations smoothly after covered events.
Some key benefits of property insurance for amusement parks include protecting against losses from natural disasters, equipment breakdown, vandalism and liability exposures from visitor injuries on the premises. Business interruption coverage also provides financial relief if operations need to shut down temporarily for repairs after property damage incidents.
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Based on industry data, the estimated average annual property insurance premium for amusement and theme parks is $7.50 per $100 of insured value. This pricing is derived based on the risk level of the industry which involves operations of rides, entertainment shows as well as large visitor volumes that can lead to higher liability exposures. Higher risk factors such as water parks or outdoor rides may lead to slightly higher premium pricing.
Estimated Pricing: $7.50 per $100 of insured value
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial benefits and protection for businesses in the amusement and theme parks industry. This industry faces various occupational hazards that could result in injuries like slips, falls, cuts, strains and more from tasks like maintenance, operations and dealing with customers. Workers’ comp helps ensure financial support and timely recovery for workers through paid medical expenses and wages, while reducing costs for employers from liability, lost productivity, absenteeism and customer injury costs. It aims to support both employee wellbeing and reduce business expenses.
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Based on industry data and factors such as risks of injuries, the estimated average pricing for workers’ compensation insurance for businesses in the amusement and theme parks industry with NAICS Code 713110 is around $5.50 per $100 of payroll. This price was derived by taking into account the industry’s average total incurred losses (paid claims + reserves for future payments on existing claims) per $100 of reported payroll, the average expense rates to administer the claims, profit margins, and other fees.
Estimated Pricing: $5.50/100 of payroll
Umbrella Insurance
Umbrella insurance provides excess liability coverage that protects businesses from large claims exceeding their existing insurance policy limits. It is especially important for amusement and theme parks due to the high risks of injuries from rides and attractions potentially resulting in expensive lawsuits.
Adding to the above, umbrella insurance can offer pricing between $2-3 per $1,000 of coverage, with higher risk parks paying more. Factors influencing pricing include guest numbers, types of rides, location risks and claim history. Umbrella insurance also covers legal costs, risks not covered by other policies and provides higher liability limits than standard policies.
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Based on average risk factors for businesses in the Amusement and Theme Parks industry (NAICS Code: 713110), umbrella insurance would typically price at around $2-3 per $1,000 of coverage. Factors influencing the pricing include number of guests, any extreme attractions/rides, location/region risks like hurricanes/tornadoes, existing general liability limits, claim history, and safety protocols. $2 per $1,000 would be for lower risk profile parks while $3 per $1,000 would be more for higher risk ones.
Estimated Pricing: $2-3 per $1,000 of coverage
Cyber Liability Insurance
As amusement parks and theme parks collect and store large amounts of sensitive customer data, they face significant risks from cyber threats and data breaches. Cyber liability insurance can help protect these businesses from the high costs associated with cyber incidents and data compromise events. Notable benefits of cyber liability insurance for amusement parks include covering breach response costs, business interruption expenses, lawsuits, fines and more. Common use cases where coverage would apply involve data theft, network attacks, ransomware, and third-party liability claims. Premium costs for cyber insurance generally range from $4,000 to $6,000 annually depending on park size and data security practices.
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Based on typical pricing models and risk factors for businesses in the Amusement and Theme Parks industry (NAICS 713110), the estimated average annual premium for a $1M cyber liability policy would be around $4,000-$6,000. This estimate takes into account considerations like number of customer records, data security practices, and business size. Larger parks with more customers may see premiums closer to $6,000 whereas smaller independent parks could qualify for rates around $4,000.
Estimated Pricing: $4,000-$6,000
Business Income Insurance
Business income insurance, also known as business interruption insurance, protects amusement and theme parks from financial losses if they experience an unexpected closure or interruption to normal operations. It covers ongoing expenses and lost revenue to help the business resume functioning as quickly as possible after an insurable event like a natural disaster, mechanical failure, maintenance needs, or health issue forces a temporary shutdown. Key benefits include replacing lost profits during downtime, compensating for cancelled events, and paying operating costs even if the business is closed. The estimated annual premium is 1.5-2% of revenues, or $75,000-$200,000 for typical small to medium theme parks with $5-10 million in annual sales.
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Based on industry analysis, the average business income insurance pricing for amusement and theme parks is about 1.5% to 2% of their annual revenues. Given the typical revenue range is between $5-10M per year for small to medium sized theme parks, the estimated price would be $75,000 – $200,000 per year.
Estimated Pricing: $75,000 – $200,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is an important type of coverage for businesses in the amusement and theme park industry. It protects them from financial losses due to negligent acts, errors, or omissions that result in injuries to visitors.
Some key benefits of professional liability insurance for amusement and theme parks include covering legal costs if sued for injuries occurring on rides or premises, negligence related to ride maintenance or safety protocols, and claims arising from improper training or supervision of staff. Pricing is estimated between $5,000-$10,000 annually based on business size and risk factors.
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Based on industry data and risk factors analysis, the estimated average pricing for professional liability insurance for businesses in the Amusement and Theme Parks (NAICS 713110) industry is around $5,000 – $10,000 annually. Factors such as the size of the business, number of attractions and rides, past claim history, and safety record would impact the final pricing. Larger theme parks or those with risky attractions may pay closer to $10,000 while smaller local parks may pay around $5,000.
Estimated Pricing: $5,000 – $10,000
Directors And Officers Liability Insurance
Directors and officers liability insurance (D&O insurance) is an important type of liability insurance that businesses in the amusement and theme park industry should consider, given the risks of litigations related to accidents, injuries, employee issues and shareholders that are common in this sector. Some key benefits of D&O insurance for amusement parks include protecting directors and officers from lawsuits, covering legal defense costs, reimbursing indemnification costs if lawsuits are successful, and covering settlement costs. Typical pricing for D&O insurance for amusement parks is between $15,000-$25,000 annually based on factors like revenue, employees, claims history and location. Common use cases where D&O insurance provides protection include shareholder lawsuits, litigations related to wrongful termination or discrimination, and negligence claims resulting from accidents.
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Based on typical pricing models, the average estimated pricing for Directors And Officers Liability Insurance for businesses in the Amusement and Theme Parks industry (NAICS Code: 713110) would be around $15,000-$25,000 annually. The pricing is derived based on factors such as annual revenue, number of employees/directors, claims history, geographical location, and risk profiles unique to theme park operations.
Estimated Pricing: $15,000-$25,000
Commercial Auto Insurance
Intro paragraph: Commercial auto insurance provides important liability and physical damage protection for vehicles used in amusement and theme park operations like transporting guests and carrying out daily maintenance tasks.
Additional content: The estimated annual pricing provided of $2,500 per vehicle is a useful data point for amusement and theme parks to understand their potential commercial auto insurance costs based on industry averages. Factors like number of vehicles, loss history, and policy details will influence actual quotes.
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Based on national industry averages, the estimated annual pricing for commercial auto insurance for businesses in the amusement and theme parks industry (NAICS 713110) would be around $2,500 per vehicle. This estimate takes into account factors like the types of vehicles commonly used, average number of vehicles, loss history specific to this industry, and other variables insurance companies use to calculate commercial auto rates.
Estimated Pricing: $2,500
Conclusion
In summary, general liability, property, workers’ compensation, commercial auto, umbrella, cyber and business income policies are critical for theme parks. Having the right insurance tailored to this industry’s exposures can help shield the business financially from unexpected events.