Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a haunted home.
This article will discuss the primary insurance coverage for haunted homes, general liability insurance, as well as additional policies that are appropriate for this industry.
Haunted House 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 That General Liability Insurance For A Haunted House May Cover
Example 1: A client strolling through a scary attraction comes into contact with a live wire that was not properly placed and gets severe burns and electrical shock, requiring immediate medical treatment. General liability insurance would most likely cover expenditures linked to the accident, such as medical bills and any legal action taken against the company.
Example 2: As a tour group enters the haunted home, one staffer rushes out to catch him, accidentally touching him and causing him to drop an expensive camera. Depending on the worth of the camera, general liability insurance may assist pay the expense.
Example 3: A stage prop falls on a person travelling through a spooky house. They trip and fall, landing on their heads. While there does not seem to be a medical emergency, the haunted home summons an ambulance just in case. Liability insurance covers losses resulting from medical expenditures and litigation made against the firm.
Example 4: A visiting consumer fails to sign a liability release before accessing the attraction, becomes terrified, and experiences a medical emergency on the premises. If the employees failed to verify that a waiver was signed, this might fall under general liability insurance, resulting in a payment for damages in a lawsuit. In court, a responsibility waiver may only go so far. In summary, even if a waiver is signed, the corporation may still be sued.
Example 5: The haunted home owners utilise in their marketing materials a word or phrase that is a copyright violation of another place. A copyright infringement claim may 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
The typical American Haunted House pays between $300 and $800 each 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 Haunted House Coverage Required
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 haunted homes should purchase are as follows:
Commercial Property Insurance
Commercial property insurance is required if you own the building where the haunted house will be located or the land on which the attraction will be put up. It helps to safeguard both the structure and the attraction elements from many forms of threats. Each attraction, from the walls to the props, is essential to the running of a haunted house. It is also critical to minimise damage to any equipment.
Insurance for Workers’ Compensation
Most haunted homes employ a large number of people. Some are put in perilous circumstances where they might slip and fall or get another harm. Workers’ compensation protects workers from on-the-job accidents and illnesses while minimising financial damage.
Coverage Options for Haunted Attractions
In addition to the insurance listed above, your haunted home may need a few more kinds of coverage based on particular features 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.
Umbrella Insurance for Businesses
The consequences of an event might be severe. For example, a client who is struck in the head after falling on the floor in the dark might result in a costly lawsuit and settlement. Commercial umbrella insurance may assist to cover these expenses. It increases the amount of liability coverage above and beyond what the general liability insurance plan provides. It only applies when the general liability policy’s limit is surpassed.
Insurance for Commercial Vehicles
Vehicles are also used as an attraction in some haunted homes. Employees may be drawn across a field by a ghostly woodland or farm, for example. These vehicles, whether high-powered tractors or full-size trucks, are important assets for the organisation. Companies should consider protecting them with commercial vehicle insurance since they are utilised as part of the corporate activity. This helps to safeguard the vehicle’s worth in the event of an accident and reduces general liability claims.
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.