Amusement Park Insurance Policy Information
Amusement Park Insurance. Amusement parks - with famous offerings like Ferris wheels, carousels, roller coasters, and other mechanical rides - have existed since the industrial revolution.
Amusement parks or centers are stationary facilities designed for recreational purposes. The park and its attractions may be centered on a theme, such as a cartoon or a toy.
The park may have stands, bleachers, or stadiums for shows and concerts, family or thrill rides, game arcades, exhibits or museums, swimming, boating, or other water activities, camping, lodging, gift shops, or eating facilities.
Guests' admission fees may cover all events, or guests may pay on a per-event basis. Season tickets may be available.
Today's amusement parks are sprawling hubs of entertainment that typically feature multiple restaurants and cafes as well as fun activities for visitors of all ages. The thrills found in an amusement park might offer visitors a much-needed Adrenalin boost, but they are, as a result of technological innovation and numerous safety protocols, extremely safe.
That does not mean that nothing can go wrong in an amusement park, however. All business owners have to take the reality that the company they worked so hard to build and grow is always threatened by a spectrum of risks and uncertainties into account, and take proactive steps to protect their assets.
Investing in the right insurance program is a crucial part of that. What types of amusement park insurance are needed? This short guide offers handy pointers.
Amusement park insurance protects recreation operations from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked amusement park insurance questions:
- What Is Amusement Park Insurance?
- How Much Does Amusement Park Insurance Cost?
- Why Do Amusement Parks Need Insurance?
- What Type Of Insurance Amusement Parks Need?
- What Does Amusement Park Insurance Cover & Pay For?
What Is Amusement Park Insurance?
Amusement park insurance is a type of insurance that covers the risks associated with operating an amusement park or similar attraction. This type of insurance typically includes coverage for liability, property damage, and injuries that occur on the property.
It may also include coverage for ride malfunction, loss of income due to park closures, and other potential risks. The specific coverage and limits will vary depending on the insurance policy and the needs of the amusement park.
How Much Does Amusement Park Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small amusement parks ranges from $97 to $159 per month based on location, size, revenue, claims history and more.
Why Do Amusement Parks Need Insurance?
Amusement parks need insurance for several reasons, including:
Liability: Amusement parks are open to the public, and as such, they are liable for any accidents or injuries that occur on their property. Insurance can protect the park from financial losses in the event of a lawsuit.
Property Damage: Amusement parks have a lot of valuable equipment and structures, such as rides and buildings. Insurance can protect the park from financial losses in the event of damage or destruction of these assets.
Business Interruption: Amusement parks rely on revenue from ticket sales, food, and merchandise. Insurance can protect the park from financial losses in the event of a temporary closure due to an accident or natural disaster.
Employee Injury: Amusement parks employ a large number of people, and there is always a risk of accidents or injuries occurring on the job. Insurance can cover the costs of medical treatment and lost wages for employees who are injured on the job.
Overall, insurance is a necessary expense for amusement parks to protect against financial losses and keep the park running smoothly.
What Type Of Insurance Do Amusement Parks Need?
Amusement parks will need to carry multiple types of insurance to protect their business from all major threats. The precise types of coverage you need are influenced by factors as varied as the location of the amusement park, its size, the types of rides and other amenities it offers, and its number of employees.
Because the risks an amusement park faces are multifaceted, it is essential to consult an experienced commercial insurance broker who understands this niche. With that in mind, some of the types of amusement park insurance coverage that are most important include:
- Commercial Property: This crucial kind of insurance exists to help you minimize the financial damage associated with perils such as acts of nature, theft, and vandalism, which cause damage to your physical assets. It covers outdoor assets of the kind that will make up the bulk of amusement park property as well.
- Commercial General Liability: In the event that a third party files a lawsuit alleging that your company is responsible for the damage of their property or any injuries they sustained while on your premises, general liability insurance for businesses covers a portion of the legal costs that follow. Amusement parks may further consider excess liability policies, which cover costs that general liability insurance does not.
- Workers Compensation: This type of amusement park insurance covers the medical bills and any lost income for employees, but not contractors, who suffer work-related injuries. In doing so, it further protects your company from liability.
- Business Interruption: If a peril covered by this type of policy causes you to temporarily close your business to the public, it will replace anticipated lost revenue as well as covering the costs of wages for your employees.
It is important to note that other kinds of amusement park insurance coverage may be needed - to optimally protect financial interests. To discover more, you are advised to speak to a commercial insurance agent who is familiar with recreation insurance.
Amusement Park's Risks & Exposures
Premises liability exposure is high due to the large number of visitors to the premises. Public and life safety code compliance is very important. The numbers and type of rides and their potential to injure, maim or cause death must be thoroughly reviewed. Great care must be given to the setup, operation, maintenance, and condition of rides, with adequate security and safety provided for patrons.
The amusement park must have appropriate permits from the state. The integrity of the ride operators is a key concern as inattentiveness can result in injury or death to patrons. Age, height, weight, and health restrictions on rides must be followed. Good housekeeping is critical to preventing trips, slips, and falls. Floor coverings must be in good condition.
Adequate lighting, marking of exits and egress are mandatory. Steps should have handrails, be well lit, marked, and in good maintenance and repair. Temporary stages may collapse. Parking must be appropriate for the type of amusement park. Security at the facility, in buildings, corridors, and parking areas, needs to be carefully reviewed.
There should be an evacuation plan for emergencies. Lodging, camping, and other sleeping facilities present significant loss potential. The amusement park may present an attractive nuisance hazard when not in use.
There must be adequate security to prevent acts of theft or crime against guests or unauthorized entry to children, vandals, or would-be terrorists. Personal injury losses may occur due to alleged wrongful removal, invasion of privacy, or discrimination.
Products liability exposure can be high if there are restaurants on premises due to the potential for food poisoning from inadequate food storage, handling, and cooking procedures. Foreign objects in food may result in choking or illness. There may be some exposure from souvenirs or other retail items, especially if those souvenirs are designed for children.
Workers compensation exposure is high. Workers who set up, build, or transport stage settings, equipment, lighting, and scenery or who repair and maintain machinery and equipment can suffer cuts, puncture wounds, electrical shocks and burns, slips and falls, back or lifting injuries, hernia, sprains, strains, and amputations. If any work is done above ground using lifting devices, falls can result.
Workers who handle rides or work in restaurants or gift shops may be injured by patrons. Animals used in performances or petting zoos can spread disease, bite, scratch, or kick workers. Groundskeepers may be exposed to chemical applications of herbicides and pesticides.
Cleaning operations can result in lung, eye or skin irritations and reactions. Workers who handle money may be held up. Security personnel should be trained to deal with both holdups and unruly patrons.
Property exposure is substantial as most amusement park operations require expensive machinery and equipment to run rides, lighting, and sound systems. The electrical system must be in good repair, adequate for the equipment used, and meet all current standards. There must be circuit breakers and/or fuse boxes that cannot be overridden. All buildings and equipment should be grounded to prevent damage from lightning strikes.
Event preparations such as building, painting, or gluing scenery or displays that use wood, plastic, or flammables will contribute to the fire load. Flammable fuels, paints, and varnishes must be stored in approved containers and cabinets. Welding and soldering must be done in a safe environment away from flammables.
If food preparation is done on premises, all cooking equipment must be properly controlled. If there is an off-season, the amusement park may be a target for vandalism. A watchperson service should be provided or a caretaker should be on premises every day.
Wind and other natural elements can severely affect large outdoor rides, stages, and exhibits. Business income and extra expense exposure is substantial because of the unavailability of backup facilities and possible seasonality of operations.
Equipment breakdown exposure is high, particularly if the amusement park operates on a seasonal basis. Damage to a key attraction that cannot be repaired quickly due to limited availability of parts may result in a substantial loss. All equipment must be maintained in good condition and documented.
Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees. Employees should be checked when they leave after their shifts to prevent inventory theft. All financial duties should be separated and reconciled regularly.
Cash may be collected for parking, admission, gift shop, food, and vending operations. All money must be counted by more than one employee and deposited by another. There should be a monitoring device to match ticket sales to cash. Cashiers' monies should be stripped regularly and deposited to prevent a large buildup of cash.
Inland marine exposures include accounts receivable if the park bills for services, bailees customers for items of others on exhibit, computers (which may include computer-run rides or machinery), contractors' equipment for machinery used to maintain the premises, and valuable papers and records for maintenance, suppliers', and vendors' information. Accounts receivables are extensive due to rentals and concessionaire activity. There may be mobile equipment, musical instruments, or theatrical property.
Business auto exposure may be relatively minor if only service vehicles are used. If patrons, customers, visitors, employees or others are transported, the exposure increases. Often buses, shuttles, or other transportation are available within the park. If lodging is available, limos and other airport transport may be offered.
Hands-free two-way communication devices should be used to track vehicle locations. Any driver should have an appropriate driver's license and acceptable MVR. All vehicles must be maintained on an ongoing basis with records kept in a central location. Valet services present garagekeepers exposures for damages to guests' vehicles.
What Does Amusement Park Insurance Cover & Pay For?
There are several reasons why amusement parks may be sued, including:
Ride accidents: Amusement park visitors may sustain injuries or even die due to accidents on rides, such as roller coasters, water slides, or other attractions. Amusement parks typically have liability insurance that can cover the costs of legal fees and settlements in the event of a ride accident. The insurance may also cover the costs of medical bills for injured visitors.
Negligent operation: The amusement park may be sued for operating a ride or attraction in a negligent manner, such as not properly maintaining it or failing to provide adequate safety precautions. Liability insurance can also cover costs associated with lawsuits filed against the amusement park for negligent operation, including legal fees and settlements.
Slip and fall accidents: Visitors may slip, trip, or fall while on amusement park grounds, resulting in injuries. Liability insurance can help cover the costs of legal fees and settlements in the event of a slip and fall accident.
Food poisoning: Visitors may contract food poisoning from food and beverages served at amusement parks. If visitors contract food poisoning from food and beverages served at the amusement park, the park's liability insurance may cover any related medical expenses, as well as legal fees and settlements.
Property damage: Amusement park rides and attractions can sometimes cause property damage, such as if a roller coaster damages nearby buildings. Liability insurance can also cover the costs of property damage caused by amusement park rides and attractions.
In summary, amusement parks face a variety of risks that can result in lawsuits, but liability insurance can help protect them from financial losses associated with legal fees, settlements, and medical expenses.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7996 Amusement Parks
- NAICS CODE: 713110 Amusement and Theme Parks
- Suggested Workers Compensation Code(s): 9016 Amusement Park or Exhibition Operation & Drivers
Description for 7996: Amusement Parks
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7996 Amusement Parks: Establishments of the type known as amusement parks and kiddie parks which group together and operate in whole or in part a number of attractions, such as mechanical rides, amusement devices, refreshment stands, and picnic grounds. Amusement concessionaires operating within the park are generally classified in Industry 7999.
- Amusement centers and parks (not fairs, circuses, or carnivals)
- Amusement parks
- Kiddie parks
- Piers, amusement
- Theme parks, amusement
Amusement Park Insurance - The Bottom Line
For the safety of your patrons, employees, and your livelihood, having the right amusement park insurance coverage is essential. To find out what types of options are available to you, how much coverage you should invest in, and how much your coverage will cost, speak to a reputable business insurance broker.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.