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:
- What Is Drive-In Theater Insurance?
- How Much Does Drive-In Theater Insurance Cost?
- Why Do Drive-In Theaters Need Insurance?
- What Type Of Insurance Drive-In Theaters Need?
- What Does Drive-In Theater Insurance Cover & Pay For?
What Is Drive-In Theater Insurance?
Drive-In Theater insurance is a type of insurance policy specifically designed for drive-in movie theaters. This insurance covers a variety of risks associated with operating a drive-in theater, such as property damage, liability for injury to customers, and business interruption. This insurance may also cover damages caused by weather, theft, fire, and other events that could disrupt the operation of the drive-in theater.
The policy may also provide coverage for equipment breakdowns and other losses related to the operation of the drive-in theater.
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
What Does Drive-In Theater Insurance Cover & Pay For?
Drive-in theaters can be sued for a variety of reasons, some of which are:
- Injury to a patron: A patron may be injured while on the premises of the drive-in theater, for example, by slipping and falling in a poorly lit area or being hit by a car while walking around the theater.
- Damage to property: Property damage can occur due to a variety of reasons, such as a tree falling on a car or a fire starting on the premises.
- Copyright infringement: Drive-in theaters may be sued for showing copyrighted movies without obtaining the necessary licenses and permissions from the movie studios.
- Negligence: Drive-in theaters may be sued for negligence, such as failing to maintain the premises or failing to provide adequate security.
Insurance can protect drive-in theaters from lawsuits in several ways, depending on the specific circumstances. Here are some examples:
General Liability Insurance: This type of insurance can cover bodily injury and property damage claims made against the drive-in theater. For example, if a patron slips and falls in a poorly lit area of the theater and sues for medical expenses, the general liability insurance can help pay for the settlement or judgment.
Property Insurance: Property insurance can help pay for damages to the drive-in theater's property, such as in the case of a fire or severe weather event. For example, if a tree falls on a car on the premises and damages it, property insurance can help pay for the repairs.
Copyright Infringement Insurance: This type of insurance can help pay for legal fees and settlements or judgments if the drive-in theater is sued for copyright infringement. For example, if the theater shows a movie without obtaining the necessary licenses and is sued by the movie studio, copyright infringement insurance can help pay for the legal costs and any settlement or judgment.
Professional Liability Insurance: This type of insurance can protect drive-in theaters from claims of negligence, such as failing to provide adequate security. For example, if a patron is assaulted on the premises and sues the drive-in theater for failing to provide adequate security, professional liability insurance can help pay for the settlement or judgment.
In summary, drive-in theaters can be sued for various reasons, including injury to patrons, property damage, copyright infringement, and negligence. Insurance can help protect them from these lawsuits by providing coverage for bodily injury and property damage claims, legal fees, settlements or judgments, and claims of negligence.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7833 Drive-In Motion Picture Theaters
- NAICS CODE: 512132 Drive-In Motion Picture Theaters
- Suggested Workers Compensation Code(s): 9154 Theater NOC - All Other Employees
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.
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.