Company insurance is intended to safeguard the financial assets of a business owner and is an important investment for a circus.
This article will discuss the primary insurance coverage for circuses, general liability insurance, as well as additional policies that are appropriate for this industry.
Circus General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A CIRCUS
Example 1: A minor fire breaks out in one of your circus tents, generating fear among the audience. Several visitors are injured as a consequence of the stampede, and they sue your circus for compensation. Your legal expenditures related with the cases, as well as any awarded damages, would be covered by general liability insurance.
Example 2: If a loose monkey scratches a visitor during one of your shows, the guest sues for reimbursement of medical expenses as well as general pain and suffering. Your legal bills and any awarded damages would be covered by general liability insurance.
Example 3: A ticket holder wanders too near to the elephant holding area while straying into an area restricted to the public, and an elephant knocks their kid to the ground. If the ticket holder sues you for damages, general liability insurance will cover your legal expenses as well as any monetary damages awarded by the court.
Example 4: After launching a new advertising campaign, a rival sues you for defamation. Your legal expenses and any damages awarded by the court would be covered by general liability insurance (up to the limits of your policy).
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Circuses in the United States typically pay between $300 and $800 a year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Circus Coverage
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that all circuses should have are as follows:
Insurance for Commercial Property
The circus cannot function unless its property is kept secure and operational. In the case of a fire, burglary, or natural catastrophe, commercial property insurance will cover the expense of repairing or replacing all business-related property. Because a circus travels its property, which includes animals, circus owners should negotiate necessary commercial property insurance endorsements to assure business property coverage while travelling.
Commercial property insurance may be purchased as part of a company owner’s coverage (BOP).
Insurance for Business Interruption
If your firm has close briefly to make repairs after a fire or large storm, you may suffer considerable income loss. Operation interruption insurance would cover part of your lost income, allowing you to stay in business while you make the required repairs.
This coverage is often available as part of a company owner’s insurance (BOP).
Coverage Options for Some Circuses
In addition to the insurance listed above, your circus may need other forms of coverage based on particular elements of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
A circus depends on tens of thousands of clients each year, putting company owners at higher risk of tort claims. While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Insurance for Workers’ Compensation
The concert would not be possible without the ability and effort of your personnel. Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident. It would also pay your legal bills if an employee filed a lawsuit for damages.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.