Business insurance is intended to protect the financial assets of a business owner and is a necessary investment for an ebay business.
This article will discuss the primary insurance coverage for eBay businesses, general liability insurance, as well as other policies that are appropriate for this industry.
Table of Contents
Movie Theater General Liability Insurance
Every business, regardless of industry, faces risks that should be insured. General liability insurance is the most common and comprehensive type of policy that business 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 required for businesses, operating without it is extremely risky. If your company is sued, you could face fees 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 A Movie Theater’s General Liability Insurance May Cover
Example 1: A customer falls on the steps on his way up to his seat, falling forward and injuring his knee and wrist. Up to the policy limitations, your general liability insurance coverage will pay the expense of treating the guest’s injuries.
Example 2: After cleaning, an employee forgets to post a “Wet Floor” sign in the restroom. A visitor slips and falls on the wet flooring, receives injuries, and chooses to sue your theatre. A general liability insurance coverage will cover the costs of defending oneself in court. If required, it will also cover the costs of settling with the injured party.
Example 3: A concession stand staff fails to hear a client declare a food allergy. The staff provides the allergen-containing meal to the consumer. The consumer experiences a serious response that necessitates medical treatment and then lodges a claim for damages against your company. Your general liability insurance will pay your legal expenses 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
The typical American movie theatre pays 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 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 movie theatres should have are as follows:
Insurance for Commercial Property
In the case of a fire or any unanticipated tragedy, your movie theater’s goods and equipment, such as concessions and movie projectors, might be destroyed. Paying for the replacement of all of these things, as well as any real estate damage, would be prohibitively expensive. Your business property would be covered by a commercial property insurance policy.
Insurance for Workers’ Compensation
Employees may be hurt on the workplace in a number of ways, ranging from stumbling on the theatre steps to acquiring repetitive motion injuries while operating the register. When an employee has a work-related injury, it is critical to be able to pay the costs of medical treatment and missed income. Workers’ compensation is a legally mandated insurance policy that assures you do not have to endure the financial burden of such medical treatment or lost income.
Coverage Options for Some Movie Theaters
In addition to the insurance listed above, your movie theatre 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 general liability insurance coverage is a solid starting point for protecting your company, but it has limitations. If your general liability limits are surpassed, like in the case of a large lawsuit, the remaining expenses must be carried by your company—unless you have a commercial umbrella coverage. When your general liability limitations are reached under an umbrella insurance, the umbrella policy takes over.
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.