Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a drive-in movie theatre.
This article will discuss the primary insurance coverage for drive-in movie theatres, general liability insurance, as well as additional policies that are appropriate for this industry.
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Drive-In Movie Theater 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A DRIVE-IN MOVIE THEATER
Example 1: While walking to your snack bar, a client falls on a speaker cable from another car. They break their wrist and hurt their skull as they fall. If they chose to suit, general liability insurance would cover their medical bills as well as legal fees and any awarded compensation.
Example 2: A damaged speaker system in a parking area necessitates the replacement of the complete device. When an employee is transporting new equipment on a cart, they lose control of the cart and it collides with a customer’s automobile. A door is damaged as a result of the collision. The car repair expenses would be covered by general liability insurance.
Example 3: A vendor stumbles on the damp floor while installing an ice cream machine in your snack bar, injuring their head and hand. The merchant is furious that there was no “warning” sign visible and has threatened to sue. If the matter gets to court, your general liability coverage will cover the vendor’s medical expenses as well as your legal fees.
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
Drive-in movie theatres in America pay an average of $500 – $1,100 per 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 Coverage Required by Drive-In Movie Theaters
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all drive-in movie theatres should purchase are as follows:
Insurance for Workers’ Compensation
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 require time to recuperate, but also any disability benefits resulting from a workplace injury.
Insurance for Commercial Property
If you own the lot and storage facilities where your drive-in cinema is located, you are liable for any business-related items stored there in the case of a fire or other natural catastrophe. After an accident, commercial property insurance would cover the expense of repairing or replacing your specialised equipment and other company property, allowing you to reopen as quickly as feasible.
Coverage Options Available to Drive-In Movie Theaters
In addition to the insurance listed above, your drive-in movie theatre may need other forms of coverage based on particular features 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
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.
Coverage for Data Breach
If you provide a rewards programme for returning customers, you are responsible for securely preserving any personal information they supply as part of their membership. Data breach insurance will cover your legal bills and any losses stemming from a cyber-attack or other data security concern.
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.