Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a ghost tour company.
This article will discuss the primary insurance coverage for ghost tour enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.
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Ghost Tour Companies Need 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 GHOST TOUR BUSINESS
Example 1: Your ghost tour company often collaborates with other local companies to provide unique group packages and incentives. While visiting your workplace, another business owner knocks over a box, falls and fractures his arm, and demands that your firm pay for his medical treatment. His medical care would be covered by general liability insurance.
Example 2: While loading your tour van with unique ghost-hunting equipment, one of your employees loses control of the dolly, causing it to collide with a customer’s luxury automobile. The hit causes significant damage, and the consumer threatens to sue you for compensation. In the case of a lawsuit, general liability insurance would cover the customer’s car repair expenses as well as your legal fees.
Example 3: A rival sues you for defamation. You realise you need to contact an attorney even if you disagree with the libel accusation. Your legal bills and any needed settlement would be covered by general liability insurance.
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
Ghost tour companies in America often pay between $500 and $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 Ghost Tour Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that every ghost tour companies should have include:
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 only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.
Insurance for Commercial Vehicles
Any vehicle used mainly for commercial purposes, such as driving tour groups between haunted locations, needs commercial auto insurance to protect the vehicle, driver, and others on the road in the case of an accident. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business documents you transport in your vehicle.
Coverage Options for Some Ghost Tour Companies
In addition to the insurance listed above, your ghost tour company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Data Breach
This policy, often known as cyber attack insurance, protects your company against responsibility if a cybercriminal breaches your computer system and takes sensitive client data, and your customers sue you for damages. Data breach insurance would cover your legal bills as well as any settlement amounts in the case of such a lawsuit.
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.
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.