Amusement Insurance: How to Find the Right Plan & Provider

amusement insurance

Owners and operators in the amusement and entertainment industry need to be aware of the many risks that come with the business.  Whether operating an amusement park, water park, or offering recreational activities like go-karting or canoeing, the risks add up fast.

The key to long-term success and the ability to sleep easy at night has a strong correlation to mitigating those risks and knowing you’re covered when something goes wrong.  Many operators have liability coverage, property, and equipment, but leave gaps in other vital areas like: 

  • Umbrella and excess liability — Provides additional coverage beyond your standard policy. It’s instrumental if you’re facing a significant liability claim.
  • Commercial auto — Insures your business vehicles including vehicles you rent.
  • Business owner — Bundles all required insurance coverage a business owner needs. 
  • Inland marine — Insurance covers the property not covered by other policies. It can protect newly acquired rental equipment and the property you rent.
  • Workers’ compensation — Varies by state but is required if you have W2 employees.

When choosing your amusement insurance and insurance bundles, you need to account for all possible risks and make sure you’re covered.  You’ve invested a lot in your business; having the right coverage ensures that something out of your control won’t take it away.  You must work with an insurance provider that understands the amusement and entertainment industry and knows how to mitigate its inherent risks.

Assess risks

Your risks will be dependent on how you operate. For example, trampoline parks will have different risks than a snow tubing business or water park business. 

A proper risk assessment will start by identifying hazards like fires, mechanical breakdowns, and even cyber-attacks. Next, identify assets that could be at risk like employees, customers, buildings, and reputation. Finally, analyze the impact like injury, litigation, and potential losses. The right amusement insurance provider should be able to offer coverage for all identified risks.

Don’t make assumptions

Every business, even within a niche industry like amusement and entertainment, is different. Consider insurance coverage based on your location, how you operate, and other essential variables.

If you have basic property insurance, make sure you understand exactly what it covers and in what circumstances. For example, it may not cover natural disasters. If you operate in an area that’s prone to floods or fires, you’ll want to make sure coverage is included for these incidents.

Understanding the industry

If you neglect any area, it may result in serious risk for your company. An experienced amusement and entertainment insurance provider will be aware of the types of mandatory coverage and what kinds of additional coverage you should consider based on your unique operation and location. 

Experience pays off

The bottom line is you’re shopping for protection. If providers do not fully understand your industry, you may end up with a lack of coverage that ends up hurting your bottom line or worse. 

Even if you choose not to get full coverage, knowing your liabilities can change your company’s policies and behaviors that mitigate your risks in meaningful ways.

At McGowan Allied Specialty Insurance, we are masters in the art of insuring amusement and entertainment risks. Our team brings more than 35 years of expertise in risk management in the industry. Additionally, the IAAPA Elite Insurance Program offered by McGowan Allied Specialty Insurance brings together the best in insurance, risk management training, and safety consultation. Check out our coverages and contact us today.