Fairs And Fairgrounds Insurance Policy Information
Fairs And Fairgrounds Insurance. Fairs of all shapes and sizes are wonderful events. They bring communities together, providing them with a place where they can enjoy fun, festivities, and of course, all types of food.
Rides, games, fun houses, and shows are just some of the attractions. Vendors sell an assortment of unique items, too. There's no doubt about it; there's nothing better than a fair.
Fairgrounds are designed for large public gatherings such as business meetings, cultural events, educational events, exhibitions, fairs, bazaar, sporting or skill events, or other types of programs.
There may be numerous buildings spread over a wide area, including exhibition halls, auditoriums, grandstands, meeting facilities, and open-air livestock barns. There may be permanent stages and seating or these may be temporary for special performances.
Fairgrounds usually have snack bars or numerous food vendors. Liquor may be sold. Thousands of guests may attend events. Operations may be seasonal or available year-round. They are usually owned and operated by a county or state board.
If you're the operator of a fair or a fairground, you are tasked with the wonderful job of spreading joy. However, your job isn't all fun and games; you are exposed to a variety of risks.
In order to protect yourself from the liabilities that are associated with owning and operating fairs and fairgrounds, you need to have the right type of fairs and fairgrounds insurance coverage in place.
Fairs and fairgrounds insurance protects local, county, state and other fairs & festivals 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 fairs, festivals and fairgrounds insurance questions:
- How Much Does Fairs And Fairgrounds Insurance Cost?
- What Type Of Insurance Do Accountants Need?
- What Is An Accounting Insurance Business Owner's Policy?
How Much Does Fairs And Fairgrounds Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small local fairs ranges from $67 to several thousand per fair - based on location, number of people attending, revenue, claims history and more.
Why Do Fairs And Fairgrounds Need Insurance?
While you try your best to make sure that your all of the events that are associated with your fair or that are held on your fairgrounds go off without a hitch, there's always a chance that something could go wrong.
A patron could trip over wires that are being used to power rides; an electrical short could spark a fire; a ride could break down, trapping rides inside…. These are just a few of the issues that could arise, and as the owner and operator of a fair or fairgrounds, you are liable for anything that does go wrong.
In order to protect yourself from the unexpected, having fairs and fairgrounds insurance is an absolute must. If you are covered, when something does go wrong, instead of having to pay the related expenses out of your own pocket, your insurer will cover them for you.
In other words, insurance can help to protect you from serious financial losses. Additionally, fairs and fairgrounds are legally required to carry certain types of insurance coverage. If you fail to have the coverage that is necessary, you could be looking at costly fines. There's a chance that you could have your license revoked, too.
What Type Of Insurance Do Fairs And Fairgrounds Need?
The specific types of fairs and fairgrounds insurance coverage needed to have in place depend on several different factors and the specifics of your particular operation; where it is located, the size of the event or property, and what type of activities occur at your fair or on your fairgrounds, for example.
Examples of some of the different types of fairs and fairgrounds coverage that should be considered include the following:
- Business personal property coverage
- Commercial general liability insurance
- Commercial property insurance
- Damage to premises rented coverage
- Personal and advertising injury coverage
- Products and complete operations coverage
- Vendor insurance
The above are just a few examples of the different types of fairs and fairgrounds coverage are needed. There are policies available that offer several different coverages under a single policy, or you may purchase separate policies.
The amount of coverage you need to fully insure your fair or fairground depends on the specifics of your operations. An agent will be able to assist you with determining how much coverage you should have in place.
Similarly, the amount that it will cost to insurance a fair and fairground also depends on several different factors, such as the size of your fair, the specific types of activities that occur on your fairground, where the operation is located, and more.
Fairs And Fairgrounds' Risks & Exposures
Premises liability exposure is high due to the large numbers of visitors on premises during events. Public and life safety code compliance is very important. Good housekeeping is critical to preventing trips, slips, and falls. Floor coverings must be in good condition. Adequate lighting, marked exits, and egresses are mandatory. Steps must have handrails, be well lit, marked, and in good maintenance and repair.
Animals brought to the fairgrounds by exhibitors or for petting zoos can spread disease, bite, scratch, or kick guests. Temporary stages may collapse. Parking areas should be maintained free of snow and ice.
Security at the facility, as well as in the building, corridors, and any owned parking area, needs to be carefully checked and reviewed. There should be an evacuation plan for emergencies. The fairgrounds may present an attractive nuisance hazard when not in use. There must be adequate security to prevent unauthorized entry to children, vandals, or would-be terrorists.
Personal injury losses may occur due to alleged wrongful removal, invasion of privacy, or discrimination. Contracts with suppliers, vendors, event planners, and performers must be clear as to all responsibilities.
Carnival operations pose a significant concern as guests may be injured by malfunctioning rides. Carnival operators must have appropriate permits from the state. Integrity of the operators of the carnival and maintenance of rides are key concerns. Adequate security and safety must be provided for patrons of each ride, particularly, smaller children.
Carnival operators must have adequate insurance limits and should provide certificates of insurance to fairground owners. The insured should consider being added as an additional insured to the carnival operator's policy. Complaints must be investigated and resolved promptly.
Liquor liability exposure can be quite extensive if employees and food service vendors are not properly trained to recognize the effects of excessive alcohol consumption. There must be procedures in place for verifying the age of guests ordering alcoholic beverages and for refusing service to underage guests.
In addition, there should be a "cut-off" time well before closing time to prevent visitors from consuming excessive alcohol prior to driving home.
Products liability exposures can be high if the fairground operates the restaurants or snack bars. 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.
If these are contracted out, the fairground should verify that the operators have adequate liability coverage.
Workers compensation exposure can be very high. Employees who set up, build, or transport stage settings, equipment, lighting, and scenery may be injured by cuts, puncture wounds, electrical shocks and burns, slips and falls, or back injuries, hernias, strains, or sprains from lifting or working from awkward positions.
Stage and lighting setup may involve aboveground exposures that need additional protection and precautions to avoid falling from heights or being hit by falling objects. Hawkers, peddlers, and vendors employed by the fair to sell wares in the stands and on the premises have high potential to falls due to limited visibility as they ascend and descend steps while carrying items to sell.
Animals brought to the fairgrounds by exhibitors or performers can spread disease, bite, scratch, or kick workers. Ongoing exposure to noise levels can result in hearing impairment. Food preparation operations can result in cuts, scrapes, and burns.
Cleaning and maintenance operations can result in lung, eye or skin irritations, and reactions. Adequate security and training must be provided to employees handling money in ticket booths, gift shops, and concession stands to reduce the possibility of injury due to holdups.
Security personnel should be trained to deal with both holdups and unruly patrons.
Property exposure is very high due to the extensive electrical system necessary to run the lighting, sound systems, and other electronic equipment. Event sponsors and performers will often bring their own equipment that must be fitted into the electrical system provided by the fairgrounds.
The electrical system must be in good repair, adequate for the equipment used, and meet all current building standards. All circuit breakers must be well maintained with no overrides.
Event preparations such as building, painting, or gluing scenery or displays that use wood, plastic or flammables will contribute to the fire load. Some performers incorporate smoke or fireworks into their shows. These operations must be properly controlled, with all flammables stored in approved containers and cabinets.
Fairgrounds are often located in rural areas with limited or no access to public water sources. Smoking must be controlled throughout the facility.
If food preparation is done on premises, such as in concession stands, all cooking equipment must be properly controlled. Fairgrounds may be an attractive nuisance, particularly during the off-season.
There must be daily inspection of the premises to prevent vandalism and break-ins and to detect small fires. Business income loss may be substantial following a building loss due to the unavailability of backup facilities.
Equipment breakdown exposure may be high due to the heating and air conditioning systems, cooking equipment, hot water systems, electrical control panels, and lighting and sound equipment used for special events. Breakdown and loss of use could result in significant loss, both direct and under time element, if replacements parts are unavailable or repair time is lengthy.
Crime exposure is from employee dishonesty and money and securities. Employee dishonesty coverage should be extended to include volunteers. Background checks should be conducted on all employees and volunteers handling money. Cash is collected for parking, admission, gift shop, and vending operations. All money must be counted by more than one employee and deposited by another.
Ordering, billing, and disbursements should be separate operations. Money must be collected and deposited on a frequent basis during the days of operation. No money is to remain on premises overnight. There must be adequate security from guards.
Inland marine exposures are from accounts receivable if the fairground bills customers for services, audio-visual equipment, computers, mobile equipment, musical instruments, theatrical property, and valuable papers and records for contracts with suppliers and vendors.
Values can be very high with the wide variety of equipment for sound, lighting, scenery, and displays. Owned equipment used or taken off the premises can be damaged in transit or stolen. If the fairground assumes responsibility for the equipment of entertainers or other occupants while on the premises, bailees customers coverage should be considered.
Duplicates of records should be made and stored off-site for easy restoration.
Commercial auto exposure is generally limited to hired and non-owned for employees running errands. If there are owned vehicles, all drivers must be licensed and have acceptable MVRs. Vehicles must be maintained on a regular basis with all service documented.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7999 Amusement and Recreation Services, Not Elsewhere Classified
- NAICS CODE: 711310 Promoters of Performing Arts, Sports, and Similar Events with Facilities
- Suggested ISO General Liability Code(s): 43517, 43518
- Suggested Workers Compensation Code(s): 9016
Description for 7999: Amusement and Recreation Services, Not Elsewhere Classified
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7999 Amusement and Recreation Services, Not Elsewhere Classifieds: Establishments primarily engaged in the operation of sports, amusement, and recreation services, not elsewhere classified, such as bathing beaches, swimming pools, riding academies and schools, carnival operation, exposition operation, horse shows, picnic grounds operation, rental of rowboats and canoes, and shooting galleries. Establishments primarily engaged in showing or handling animals at shows or exhibitions are classified in Agricultural Services, Industry Group 075.
- Aerial tramways, amusement or scenic
- Amusement concessions
- Amusement rides
- Animal shows in circuses, fairs, and carnivals
- Archery ranges, operation of
- Baseball instruction schools
- Basketball instruction schools
- Bath houses, independently operated
- Bathing beaches, public
- Betting information services
- Billiard parlors
- Bingo parlors
- Boat rental, pleasure
- Boats, party fishing: operation of
- Bookmakers, race
- Bowling instruction
- Bridge club, nonmembership
- Bridge instruction
- Cable lifts, amusement or scenic: operated separately from lodges
- Canoe rental
- Card rooms
- Carnival operation
- Cave operation
- Circus companies
- Concession operators, amusement devices and rides
- Day camps
- Exhibition operation
- Exposition operation
- Fairs, agricultural: operation of
- Fireworks display service
- Fishing piers ant lakes, operation of
- Fortune tellers
- Gambling establishments not primarily operating coin-operated
- Gambling machines, except coin-operated operation of
- Game parlors, except coin-operated
- Games, teaching of
- Gocart raceway operation
- Gocart rentals
- Golf courses, miniature operation of
- Golf driving ranges
- Golf professionals not operating retail stores
- Golf, pitch-n-putt
- Gymnastics instruction
- Handball courts, except membership club
- Horse shows
- Houseboat rentals
- Hunting guides
- Ice skating rink operation
- Judo instruction
- Karate instruction
- Lifeguard service
- Lotteries, operation of
- Lottery club and ticket sales to individuals
- Moped rental
- Motorcycle rental
- Natural wonders, tourist attraction: commercial
- Observation tower operation
- Off-track betting
- Pack trains for amusement
- Parachute training for pleasure
- Picnic grounds operation
- Ping pong parlors
- Pool parlors
- Racquetball courts, except membership clubs
- Rental of beach chairs and accessories
- Rental of bicycles
- Rental of golf carts
- Rental of rowboats and canoes
- Rental of saddle horses
- Riding academies and schools
- Riding stables
- River rafting, operation of
- Rodeo animal rental
- Rodeos, operation of
- Roller skating rink operation
- Scenic railroads for amusement
- Schools and camps, sports instructional
- Scuba and skin diving instruction
- Shooting galleries
- Shooting ranges, operation of
- Skating instruction, ice or roller
- Skeet shooting facilities, except membership clubs
- Ski instruction
- Ski lifts, cable lifts, and ski tows operated separately from lodges
- Ski rental concessions
- Slot-car racetracks
- Sporting goods rental
- Sports instructors, professional: golf, skiing, swimming, etc.
- Sports professionals
- Swimming instruction
- Swimming pools, except membership
- Tennis clubs, nonmembership
- Tennis courts, outdoor and indoor operation of, nonmembership
- Tennis professionals
- Ticket sales offices for sporting events, contract
- Tourist attractions, natural wonder commercial
- Tourist guides
- Trampoline operation
- Trapshooting facilities, except membership club
- Waterslides, operation of
- Wave pools, operation of
- Wax figure exhibitions
- Yoga instruction
Fairs And Fairgrounds Insurance - The Bottom Line
Since fairs and fairgrounds insurance coverage varies, speaking to a reputable agent who specializes in commercial insurance is highly recommended. A broker will be able to let you know exactly what kind of coverage you'll need, as well as help you determine what limits you should have for your policies.
Furthermore, an agent will help you get the best rates possible so that you can have the coverage you need to protect your operations at a pries that are fair and affordable.
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.