Auditorium Insurance Policy Information
Auditorium Insurance. Auditoriums feature rooms built or adapted to facilitate performances attended by an audience.
Auditoriums are designed for large public gatherings: business events, cultural events, educational events, political events, or other types of programs. They can be open-air or covered. They can be owned and operated by governmental or private entities.
They generally have a stage in front and rows of seats for spectators. Often private box seating is available. Auditoriums may have gift shops, private meeting rooms, or snack bars. Liquor may be served at some events. Auditoriums can often hold thousands of patrons.
These rooms may be used, for example, to host stand-up comedy performances, musical concerts, dance performances, educational lectures, and professional or political conferences.
Auditoriums have stages where performances take place, as well as rows of seats for the audience.
Those who own and run a commercial auditorium play a vital role in their communities. While they will do everything in their power to ensure that their business operates smoothly and their auditorium remains a hub for cultural, public, and professional presentations, the reality is that they also face a range of risks.
Each of the perils that may befall your business carries the potential of inducing devastating financial losses - and that is why it is crucial to invest in proper auditorium insurance coverage. What kinds of insurance might an auditorium need? Keep reading to discover more.
Auditorium insurance protects your facility from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked broom and brush manufacturing insurance questions:
- How Much Does Auditorium Insurance Cost?
- Why Do Auditoriums Need Insurance?
- What Type Of Insurance Do Auditoriums Need?
How Much Does Auditorium Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small auditoriums ranges from $67 to $89 per month based on location, size, revenue, claims history and more.
Why Do Auditoriums Need Insurance?
Auditoriums, like other commercial ventures, are vulnerable to numerous perils. Some of the perils that could impact your business are universal, while others unique to this field of commerce. An auditorium could be hit by an act of nature, such as a hurricane or earthquake, or an accident could lead to a fire.
Theft or vandalism could lead to the loss of essential equipment or property damage. An employee within your facility could sustain a work-related injury, or members of the public could become injured when your auditorium is impacted by a disaster.
Should sound equipment break down in the middle of a performance, a client may also attempt to hold you responsible for poor publicity, and file a lawsuit.
No matter how strictly you adhere to health and safety protocols, or what disaster-mitigation plans you may have in place, risks can never be completely eliminated. Both property and liability risks can lead to extensive expenses that may prove to be devastating.
If an auditorium is armed with quality insurance coverage, however, a significant portion of those costs will be covered, allowing your business to overcome the challenge and get back on its feet.
This is why it is essential to carefully consider what types of auditorium insurance are available to your business.
What Type Of Insurance Do Auditoriums Need?
To protect their financial interests and meet legal requirements, auditoriums will need to carry multiple different kinds of insurance. The location of the auditorium, the number of people it can host, and the number of people it has employed are just some of the variable that influence insurance needs.
A commercial insurance broker will be able to advise you regarding the types of auditorium insurance coverage your facility needs after familiarizing themselves with your company's risk profile.
With that in mind, an auditorium will certainly require the following types of coverage:
- Commercial Property - Your facility - the physical building as well as all the assets therein - can sustain severe damage when it is struck by an act of nature, or affected by an accident such as a fire. Theft and vandalism can also have a serious impact. In these cases, commercial property insurance helps by covering a significant portion of repair or replacement costs. Some of the revenue you lose to business interruptions may further be covered.
- Commercial General Liability - This type of auditorium insurance is essential for any business, as it covers financial losses associated with third party liability lawsuits in which bodily injury or property damage are alleged. It protects you from the legal and settlement costs that are bound to follow, even if the lawsuit is ultimately unfounded.
- Workers Compensation - In the event that any of your employees suffer a work-related injury, this kind of coverage will help you by paying for their medical bills. Any income an employee loses to related work absences is also covered by this type of policy.
- Equipment Breakdown - Should equipment you rely on to run your business effectively - such as lighting or sound systems - break down, equipment breakdown insurance helps you cover the repair or replacement costs.
Although these types of insurance coverage are important to any auditorium, your business may have additional insurance needs - in the form of commercial auto insurance, for instance.
To find out what types of auditorium insurance coverage best protect your facility in the event of unforeseen circumstances, consult a commercial insurance broker who is familiar with your industry.
Auditorium's Risks & Exposures
Premises liability exposure is generally limited due to the lack of public access to the storage facilities. Customers should be confined to specific areas that are kept clean, dry and free of obstacles. If customers pick up goods, loading docks must be clearly marked and user-friendly. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
There should be a disaster plan in place for unexpected emergencies. Contracts with transportation and storage providers may expose the operation to additional liability. Railroad sidetrack agreements pose additional concerns. If there is a railroad sidetrack or dock, an employee must verify that no one is in the path of an incoming or outgoing train. Railroad tracks and conveyors can be attractive nuisances. The premises should be enclosed by fencing with "No Trespassing" signs posted.
Products liability exposure is moderate to high because food products are particularly vulnerable to contamination and spoilage. Allergic reactions may occur if products are not properly labeled or are allowed to cross contaminate. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure.
Accurate records must be kept of products and batches to monitor for recalls. There should be controls in place to prevent contamination from chemicals used inside the facility, such as insecticides and pesticides. Stock should be regularly rotated so older, but not out of date, stock is sold first, and out of date stock is removed and discarded.
Environmental impairment exposure can be high due to the potential for air, land, or water pollution from the leakage of ammonia and other refrigerants used to keep stock fresh and fuel tanks used to service vehicles. All tanks and pipes should be routinely tested for leakage.
Spill procedures must be in place to prevent the accidental discharge of contaminants. Contracts should be in place to dispose of all environmentally dangerous chemicals. Record keeping is critical.
Workers compensation exposure is very high. Lifting injuries such as back pain, hernias, sprains and strains are common. Workers should be trained in proper lifting techniques and to use conveyances. Shelving must be stable to prevent stored goods from falling onto workers. Continual standing can result in musculoskeletal disorders of the back, legs, or feet.
Floor coverings or coatings may be slick and pose slip and fall hazards. Forklift operators must be properly trained. Leaking ammonia is a serious health hazard that can lead to lung damage or even death. Protective breathing equipment must be available to all workers in the event of any ammonia leak. Housekeeping is critical.
To avoid frostbite and hypothermia resulting from exposure to sub-zero temperatures, the length of time spent in refrigerated areas must be limited, and protective clothing required. When work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome.
Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals. Drivers of delivery vehicles may be confronted by robbers, injured in automobile accidents, or be injured at customers' premises. Training must be provided on dealing with such situations, and any necessary security should be provided.
Property exposure is high due to multiple ignition sources, open construction, and the combustibility and damageability of the goods and their packaging materials. Ignition sources include electrical wiring and equipment, refrigeration units, heating and air conditioning systems. All wiring must be well maintained and up to code for the occupancy.
Food products are particularly vulnerable to damage by smoke, heat, fire or water and have very little salvage value. Even a small loss can cause all stock to be condemned by the FDA due to possible contamination. All goods should be palletized or shelved. Aisle space must be adequate for firefighting. The age, condition and maintenance of coolers and refrigeration equipment are important to review.
Ammonia leaks could cause an explosion. There should be detection systems, emergency shut-off valves, and exhaust systems to allow venting in the case of a leak. Ammonia pipes should run outside the building to prevent accidental collision with forklifts inside the building, and have impact barriers around them to prevent contact with vehicles. Alarms should be in place to warn of power outage or shutdown. Backup generators should be available in case of equipment failure.
Good housekeeping and fire controls are critical. Smoking should be prohibited. If there is a sprinkler system, heads must be located high enough to avoid accidental contact with forklifts. Recharging of forklifts and maintenance of vehicles should be done in a separate, ventilated area away from combustibles.
Grocery products may be a target for thieves. Appropriate security controls must be taken, including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Business income and extra expense exposures are high. Recovering from a loss could require a lengthy time to rebuild the facility and purchase replacement refrigeration equipment.
Equipment breakdown exposures are high as temperatures must remain constant. All refrigeration equipment must be inspected and maintained on a regular basis. Back-up generators should be available. Additional coverage for spoilage and ammonia contamination should be considered because even a small power interruption could result in a large loss.
Inland marine exposure is from accounts receivable if the distributor offers credit to customers, computers for tracking inventory, contractors' equipment, goods in transit, and valuable papers and records for manufacturers' and customers' information. Duplicates must be kept of all data to permit easy replication in the event of a loss.
Contractors' equipment includes forklifts, cherry pickers, and hand trucks used for moving stored items. While goods may come to the warehouse via contract or common carriers or trains, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to spoilage loss from breakdown of refrigeration equipment and damage from collision or overturn.
There will be very little salvage following any transit incident due to the possibility of contamination. Because of the potential for theft, vehicles should be unmarked, have alarms, and be attended at all times. Sales representatives may carry sample stock to retailers.
Crime exposure is from employee dishonesty. Background checks, including criminal history, should be performed on all employees handling money. Warehouse operations involve a number of transactions and accounts that can be manipulated if duties are not separated. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.
Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Good security systems should be in place to discourage employee theft. Physical inventories should be conducted at least annually.
Commercial auto exposure is moderate for the salespersons' fleet and delivery vehicles. There should be written policies on personal and permissive use of any vehicles furnished to employees. All drivers must be well trained and have valid licenses for the type of vehicle being driven.
MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained, including refrigeration systems, with records kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 6512 Operators Of Nonresidential Buildings
- NAICS CODE: 531120 Lessors of Nonresidential Buildings (except Miniwarehouses)
- Suggested ISO General Liability Code(s): 44100 Governmental: Municipalities - Population Under 2,500, 44101 Governmental: Municipalities - Population 2,501 - 10,000, 44102 Governmental: Municipalities - Population 10,001 - 25,000, 44103 Governmental: Municipalities - Population 25,001 - 50,000, 44104 Governmental: Municipalities - Population 50,001 - 100,000, 44105 Governmental: Municipalities - Population 100,001 - 250,000, 44106 Governmental: Municipalities - Population Over 250,000, 44108 Governmental: Counties or Parishes - Population Under 10,000, 44109 Governmental: Counties or Parishes - Population 10,001 - 25,000, 44110 Governmental: Counties or Parishes - Population 25,001 - 50,000, 44111 Governmental: Counties or Parishes - Population 50,001 - 100,000, 44112 Governmental: Counties or Parishes - Population 100,001 - 250,000, 44113 Governmental: Counties or Parishes - Population Over 250,000, 63215 Exhibition or Convention Buildings - Other Than Not-For-Profit, 63216 Exhibition or Convention Buildings - Not-For-Profit Only
- Suggested Workers Compensation Code(s): 9016 Amusement Park or Exhibition Operation & Drivers
Description for 6512: Operators Of Nonresidential Buildings
Division H: Finance, Insurance, And Real Estate | Major Group 65: Real Estate | Industry Group 651: Real Estate Operators (except Developers) And Lessors
6512 Operators Of Nonresidential Buildings: Establishments primarily engaged in the operation of nonresidential buildings.
- Bank buildings, operation of
- Insurance buildings, operation of
- Lessors of piers, docks, and associated buildings and facilities
- Operators of commercial and industrial buildings
- Operators of nonresidential buildings
- Retail establishments, property operation only
- Shopping centers, property operation only
- Theater buildings (ownership and operation)
Auditorium Insurance - The Bottom Line
To find out more about the specific types of auditorium insurance policies you'll need and how much coverage you should carry, consult with a reputable broker that is experienced in commercial insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Local, State And Federal Government Insurance
Learn about commercial insurance for local, state and federal government agencies, services, operations and buildings.
- County Administration Offices
- Fire Departments
- Government Buildings
- Law Enforcement Entities
- Public Buildings
Cooperative efforts between insurance professionals and public officials have led to the satisfactory arrangement of coverages for public properties that may include large building schedules spread over a number of locations and geographic areas.
Liability insurance protection is a matter of much greater concern. As governmental and charitable institutional immunity continues to erode, the onslaught of lawsuits makes adequate liability protection essential.
Public utilities have unique insurance needs usually best handled by specialists in their field.
Because government entities are becoming more inventive in raising money, they are involved in activities that may not appear to be government-related so that they may require coverages that at first glance do not seem appropriate for them.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Audio/Visual Equipment, Computers, Contractors' Equipment, Fine Arts, Valuable Papers and Records, General Liability, Cyberliability, Employee Benefits, Public Officials' Liability, Umbrella, Hired and Non-Oowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Extra Expense, Flood, Computer Fraud, Forgery, Employment-related Practices, Business Auto Liability and Physical Damage and; Stop Gap Liability.