Drive-In Theater Insurance Policy Information
Drive-In Theater Insurance. The popularity of drive-in theaters - large outdoor venues that screen movies that visitors can enjoy from the comfort of their vehicles - was at its height between the 1940s and 1960s.
Drive-in movie theaters are outdoor facilities with a screen in front, a projection booth and concessions stand in back, and a large area in between for automobile parking. Patrons view movies from the comfort and privacy of their own cars using sound from speakers provided by the drive-in or their own car radios.
There is often a playground area for children available before the show and during breaks. The hours, days and months of operation will vary by risk and by locale.
While many operate on only weekends during the summer months, others have added daytime activities such as flea markets, or started operating in the early spring, with operations continuing until late fall.
Today, drive-in theaters offer an exciting sense of nostalgia that means these cinematic venues are thriving once again due to COVID-19.
Typically consisting of now digitalized projection systems, movie screens, large parking lots from which visitors can view the content on offer, and obligatory concession stands that allow movie-goers to partake of traditional popcorn and soda, drive-in theaters require savvy management.
If you own and run a drive-in theater or are considering opening such a venue, it is not only crucial to discover what your customers want and to deliver it. You also have to take the risks a drive-in theater may be confronted with into account, and plan for unexpected circumstances that may jeopardize the financial health of your business.
What kinds of drive-in theater insurance might drive-in movies need? This brief guide offers insights.
Drive-in theater insurance protects your outdoor facility from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked drive-in movie theater insurance questions:
- How Much Does Drive-In Theater Insurance Cost?
- Why Do Drive-In Theaters Need Insurance?
- What Type Of Insurance Drive-In Theaters Need?
How Much Does Drive-In Theater Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small drive-in theaters ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Drive-In Theaters Need Insurance?
Drive-in theaters may have a unique business model, but they are vulnerable to many of the same risks that threaten any commercial venture, while also facing some hazards unique to this particular field of commerce.
All the hard work you put into growing your business can be undone virtually overnight if your drive-in theater is impacted by a major peril - unless you have taken proactive steps to invest in a comprehensive insurance plan.
Nobody can plan for acts of nature such as hurricanes, wildfires, or floods, for example, but natural disasters could have a ruinous impact on your property, including the essential equipment you depend on to show your movies.
Should such a perilous event strike your drive-in theater, you will not only be left with substantial repair costs, but you will also face costly business interruptions. Theft and vandalism are two more common perils that the owners of business premises primarily located outdoors have to pay special attention to.
In addition, an employee, guest, or anyone else may be physically injured on your premises under circumstances for which you could be held liable. In these cases, costly lawsuits can follow. Unless you are prepared by carrying the right forms of insurance, such litigation could threaten the future of your business.
By investing in the best drive-in theater insurance you can afford, you can focus on what you do best - delivering exciting content in a venue your patrons will love - without worrying about what would happen to your business in a worst-case scenario.
What Type Of Insurance Do Drive-In Theaters Need?
Every drive-in theater is unique - your size, location, the equipment you use, your number of employees, and even the surrounding terrain and climate, are all among the factors that influence the character of your business.
All these variables determine what kinds of insurance you need to carry, as well. Consulting a skilled commercial insurance broker who is familiar with your field is a vital part of the process of acquiring excellent insurance, as they will be able to offer insights based on the specific risk profile of your drive-in theater.
Having said that, some types of drive-in theater insurance that are useful include:
- Commercial Property: While many people will immediately think of physical buildings when they hear the term "property insurance", this essential form of insurance covers your outdoor assets as well. In the event of perils such as theft, fire, and vandalism, the resulting repair and replacement costs will be covered.
- Commercial General Liability: Should a third party file a property damage or bodily injury claim against your business - alleging, in other words, that your drive-in theater was responsible - commercial general liability insurance covers the resulting legal costs. Attorney and court fees, medical bills, repair bills, and settlement costs are examples of the expenses covered.
- Equipment Breakdown: Should your sound system, projection equipment, or other essential machinery break down suddenly and need to be repaired or replaced, this form of drive-in theater insurance coverage will help you manage those costs.
- Workers' Compensation: Any business with employees will also need workers comp insurance. It covers medical bills and the cost of lost wages if an employee sustains a work-related injury, and thereby also protects your business from costly litigation.
Bear in mind that these important kinds of coverage may not be the only ones a drive-in theater needs.
Only a commercial insurance agent who understands your specific business can help you craft a tailor-made drive-in theater insurance insurance plan - and therefore, consulting one should be your next step as you seek to protect your business from major risks.
Drive-In Theater's Risks & Exposures
Premises liability exposure is high due to the large number of visitors on premises. Public and life safety code compliance is very important. Patrons generally walk back and forth to concession and restroom facilities in the dark. Good housekeeping and well-maintained parking surfaces are critical to prevent slips and falls.
Patrons may leave early without turning on headlights. Adequate lighting, marking of exits and egress are mandatory. Drive-in theaters sometimes bank the rows of vehicle parking for better viewing, but banking increases the possibility of loss.
Playground equipment must be well maintained, and notices should be posted indicating that parents are responsible for supervising children. There should be contracts in place when the premises is rented out explaining duties and responsibilities.
Security at events needs to be carefully reviewed. There should be an evacuation plan for emergencies. The theater may present an attractive nuisance hazard when not in use. There must be adequate security to prevent unauthorized entry. Personal injury losses may occur due to alleged wrongful removal, invasion of privacy, or discrimination.
Products liability exposure comes from any item that is sold in the concession area. Employees should be trained in the proper handling of consumables to prevent foreign objects in food, food poisoning, or the spread of other transmissible diseases.
Workers compensation exposure hazards include burns, cuts, slips, trips, and falls in the concession area, and lifting, back, hernia, or related injury during cleaning and maintenance. Automobiles being driven by patrons may hit employees.
If the theater does its own screen maintenance and repair, workers may fall from heights or be hit by falling objects. Employees responsible for collecting, counting, possessing and depositing money may be subject to hold-ups. Security personnel may suffer injury from hold ups or unruly patrons.
Property exposure is mainly from wind and vandalism. The screen's construction is important to surviving heavy winds. A screen anchored into concrete is the most durable while wood supports are the most easily destroyed. While many provide sound through customers' FM audio systems, some continue to provide individual speaker stands which are subject to vehicle damage and vandalism.
Electrical wiring used for lighting and sound systems should be up to code. Fire can be a problem in the concessions area. If deep fat frying is done, all appropriate protections must be in place. Loss of power for any reason could result in spoilage of food items.
Drive-ins may be a target for vandalism, particularly if operations are seasonal. The perimeter should be fenced and security provided even during the off-season. Business income and extra expense may be high because of the limited revenue-generating season and the unavailability of backup facilities.
Equipment breakdown exposure may be high due to the heating, lighting, and sound equipment used for showing movies. Breakdown and loss of use could result in a significant loss, both direct and under time element, if replacements parts are unavailable or repair time is lengthy.
Crime exposure comes from employee dishonesty and money and securities. Background checks should be conducted on all employees and volunteers handling money. All ordering, billing, and reimbursement must be separate functions. All cashiers should balance with a cash register with penalties for shortages.
Inventory should be regularly monitored to prevent items from disappearing. The entrance cashier booth should be secure and locked. As admittance fees are generally paid with cash, a significant amount may accumulate.
Money should be stripped and removed from the booth during the evening. No money should be left overnight. There must be adequate security from guards.
Inland marine exposure is from audio-visual equipment, computers, contractors' equipment used to maintain the grounds and the buildings, and valuable papers and records for contracts and suppliers' information. If any live performances are conducted, there may be theatrical property. When FM audio is used, there is a radio/tower exposure.
Commercial auto exposure is generally limited to hired and non-owned for employees running errands. If there are owned vehicles, all drivers must be properly licensed and have acceptable MVRs. All vehicles must be maintained on an ongoing basis and service documented.Drive-In Theaters
Commercial Insurance And Business Industry Classification
- SIC CODE: 7833 Drive-In Motion Picture Theaters
- NAICS CODE: 512132 Drive-In Motion Picture Theaters
- Suggested ISO General Liability Code(s): 49181
- Suggested Workers Compensation Code(s): 9154
Description for 7833: Drive-In Motion Picture Theaters
Division I: Services | Major Group 78: Motion Pictures | Industry Group 783: Motion Picture Theaterss
7833 Drive-In Motion Picture Theaters: Commercially operated theaters, commonly known as drive-ins, primarily engaged in the outdoor exhibition of motion pictures.
- Drive-in theaters
Drive-In Theater Insurance - The Bottom Line
To protect your operations, employees and your patrons - having the right drive-in theater insurance coverage is important. To discover what options are available to you, how much coverage you should invest in - speak to a reputable commercial insurance broker.
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 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
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
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.