Specialty Insurance Basics for the Amusement Industry

Amusement Park Insurance

The Essential Guide to Choosing the Best Coverage for Your Business 

The amusement industry is a multi-billion dollar industry that brings joy to millions of people around the world. But with all the fun comes risk. From drownings at water parks to mechanical failures on roller coasters, the amusement industry is constantly exposed to an abundance of hazards. Do you have amusement park insurance coverage?

In 2021, there were over 30,000 amusement-related injuries in the United States. Of those, 10 were fatal. These accidents can have a devastating impact on the victims and their families. Specialty insurance can help to protect visitors and businesses from the financial burden of accidents and their associated legal liabilities.

Take a closer look as our experts break down specialty insurance basics for the amusement industry and discover how specialty insurance can help to mitigate those risks with our glossary.

What Is Specialty Insurance?

Traditional business insurance policies typically cover common risks, such as property damage, liability claims and business interruption. However, some businesses face unusual risks not typically covered by standard policies. 

Specialty insurance is a type of insurance designed to cover risks not typically covered by traditional insurance policies. These risks can be unique to a particular industry or business, or they can be more complex than the risks covered by standard policies.

By having the right type of insurance, amusement parks, water parks, family entertainment centers and more can protect themselves from financial losses and legal liability.

Read more: Top Five Recommendations For Choosing The “Right” Insurance Program For Your FEC or Park

amusement park insurance

How to Know if You Need Specialty Insurance

Your business may not be as high-risk as a circus or amusement park, but specialty insurance can still be a great option for businesses that face unique liability concerns. Construction contractors, for example, often find themselves on the wrong end of lawsuits. Specialty insurance can help to offset this risk by providing coverage for legal fees and damages.

So how do you know if your business requires specialty insurance? Ask yourself the following questions to get a better idea:

Do you operate in a high-risk industry? Some industries, such as construction, amusement parks and transportation, are inherently more risky than others. If you operate in one of these industries, you may need specialty insurance to protect yourself from the financial and legal risks associated with your operations.

Do you work with hazardous materials? If you work with hazardous materials, such as chemicals or radioactive substances, you may need specialty insurance to cover the risks associated with their transportation, storage, and use.

Do you have employees? If you have employees, you may need specialty insurance to cover the risks associated with employment-related lawsuits, such as discrimination, harassment and wrongful termination.

Do you own or lease property? If you own or lease property, you may need specialty insurance to cover the risks associated with damage to or loss of your property.

Do you host special events? If you host special events, such as weddings, festivals, or concerts, you may need specialty insurance to cover the risks associated with these events, such as liability claims, cancellation, or postponement.

If you answered “yes” to any of these questions, you may need specialty insurance. Get in touch with the experts at McGowan Allied Specialty Insurance to determine your specific needs.

We can create customized plans to address the specific coverage required by your business. With more than 40 years of experience in the amusement and entertainment industry, you can count on our team to protect you from risks and provide you with peace of mind.

Specialty Insurance Glossary

Now that you have learned the basics of specialty insurance, you may wonder what other types of specialty insurance are available. Our specialty insurance glossary defines a few key insurance policies that can be a helpful resource for learning about the different options and ways to customize your coverage. 

General liability amusement park insurance

This type of insurance can cover a variety of risks, including liability claims, cancellation or postponement, property damage, and medical expenses if a guest is injured.General liability insurance is important for amusement parks because they are inherently dangerous places. There are many potential hazards at an amusement park, such as rides, water slides and food vendors. If someone is injured at an amusement park, the park could be held liable.

Employers’ liability insurance

If an employee is injured on the job, the business could be sued for damages. Employers’ liability insurance is a type of liability insurance that covers businesses for accidents and injuries that occur to their employees while they are working. Keep in mind that some jobs are more dangerous than others. If your employees work in a dangerous industry, you may need more comprehensive employers’ liability insurance coverage.

Professional liability insurance

Also known as errors and omissions (E&O) insurance, professional liability insurance protects professionals from financial losses arising from mistakes or errors they make in the course of their work. It typically covers legal fees, damages and expert witnesses to testify on behalf of a professional in a lawsuit.

Fleet insurance

Fleet insurance is a type of commercial insurance that covers a group of vehicles owned by a business. This type of insurance can help to protect businesses from financial losses arising from accidents, theft, and other risks associated with owning and operating a fleet of vehicles.

Cyber liability insurance

This type of specialty insurance covers businesses for financial losses arising from data breaches, cyberattacks and other cyber incidents. The more sensitive customer data you collect or store, the more likely you are to be targeted by a cyberattack. As a result, you may need more comprehensive cyber liability insurance coverage.

Liquor liability insurance

Liquor liability insurance is a type of commercial insurance that covers businesses for financial losses arising from accidents or injuries caused by intoxicated patrons. It also covers risks like a staff member selling alcohol to underage people, over-serving a guest and drinking on the job.

Special event insurance

Special event insurance protects event organizers against financial losses caused by unexpected events, such as severe weather, fires, electrical outages, bomb threats, and disease outbreaks like COVID-19. These unforeseen circumstances can force organizers to cancel, relocate, or reschedule their events, which can lead to lost revenue and disappointed attendees.

Inland marine

Inland marine insurance is a type of commercial insurance that covers property transported or stored on land away from the business site. This coverage type is ideal for traveling carnivals, plays, concerts or other stage shows. It typically covers damage to property caused by accidents, such as theft, vandalism and fire.

Mechanical breakdown insurance

This is a type of commercial insurance that covers the cost of repairs or replacement of equipment that breaks down because of an accident, mechanical failure, or other unforeseen event. It can include equipment like amusement park rides, elevators, HVAC equipment and electrical equipment.

Active shooter insurance

While the risk of an active shooter event is a concern for all businesses, public-facing businesses in the amusement and entertainment industries need to pay special attention to this coverage, especially venues open to larger crowds. The liabilities surrounding active shooters are substantial, and damages can include legal fees, settlements, and medical care. Standard business policies rarely cover active shooters or provide inadequate coverage.

Read more: Reopening & Preparing: Active Shooter Response

Finding experienced specialty insurance providers

At McGowan Specialty Allied Insurance, our experts only work with owners and operators in the amusement and entertainment industry. We routinely cover amusement parks, water parks, carnivals, live shows, festivals, rodeos and more. We are also committed to providing the best in insurance, risk management education and training, as well as safety consultation through our IAAPA Elite Insurance Program.

Sign up online or call our team at 727-547-3023 to receive a personalized quote and learn more about our flexible insurance policies. 

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