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Amusement Park Insurance

Amusement parks offer visitors a thrilling and entertaining experience, but they also come with significant risks and liabilities. From roller coasters to water slides, the attractions at these parks can cause accidents and injuries, making it essential for park owners and operators to have adequate insurance coverage in place.

Amusement park insurance is a specialized form of coverage designed to address the unique risks associated with operating an amusement park.

Who Needs Amusement Park Insurance?

Any company that operates an amusement park should consider obtaining amusement park insurance. This includes theme parks, water parks, and other types of entertainment venues that feature rides, attractions, and other activities.

Types of Insurance Needed by Amusement Parks

Some of the common types of insurance needed by amusement parks include:

  • General Liability Insurance: This coverage provides protection against claims of bodily injury or property damage that may arise from the park’s operations, including accidents on rides or in other areas of the park.
  • Property Insurance: This coverage provides protection against damage to the park’s property, including rides, buildings, and equipment.
  • Workers’ Compensation Insurance: This coverage provides protection for employees who are injured or become ill while performing their duties at the park.
  • Product Liability Insurance: This coverage provides protection against claims of injury or property damage caused by a defective or malfunctioning product, such as a ride or attraction.
  • Cyber Liability Insurance: This coverage provides protection against data breaches, hacking, and other cybersecurity risks that may arise from the park’s operations.
  • Professional Liability Insurance: This coverage provides protection against claims of professional negligence or errors and omissions in professional services provided by the park, such as design or engineering services.
  • Crime Insurance: This coverage provides protection against losses due to theft, embezzlement, and other crimes that may be committed by employees or others at the park.

How Much Does Amusement Park Insurance Cost?

The cost of amusement park insurance can vary widely depending on several factors, including the size and location of the park, the types of attractions and activities offered, and the level of coverage needed.

Premiums for amusement park insurance can range from a few thousand dollars to several hundred thousand dollars per year, depending on the specific risks and liabilities associated with the park’s operations. Factors that can impact the cost of insurance include the number of rides and attractions, the age and condition of the equipment, the park’s claims history, and the number of visitors per year.

In general, amusement parks with more attractions and higher visitor traffic can expect to pay higher insurance premiums due to the increased risk of accidents and injuries. Additionally, parks that offer more extreme or high-speed rides may face higher insurance costs due to the increased potential for serious injuries or fatalities.

Amusement Park Risks & Exposures

Below you will find some of the key risks and exposures associated with amusement parks.

Accidents and Injuries

Amusement parks are inherently risky environments, and accidents and injuries can happen on rides, in queues, and in other areas of the park. Common causes of accidents and injuries include ride malfunctions, operator error, and guest behavior.

Property Damage

Amusement park equipment and infrastructure can be subject to damage from natural disasters, vandalism, and accidents.

Product Liability

Amusement park rides and attractions can be subject to product liability claims if they are found to be defective or malfunctioning, resulting in injury or property damage.

Cybersecurity Risks

Amusement parks collect and store large amounts of personal and financial data, making them vulnerable to cyber-attacks, data breaches, and other cybersecurity risks.

Employment Practices Liability

Amusement parks can be subject to claims of discrimination, harassment, or wrongful termination by employees or job applicants.

Crime and Theft

Amusement parks can be targeted by criminals, who may steal money or equipment or commit other crimes on the premises.

Business Interruption

Amusement parks may face disruptions to their operations due to natural disasters, power outages, or other events, which can result in lost revenue and other financial losses.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 7389 Business Services NEC
  • NAICS CODE: 541890 Other Services Relating to Advertising
  • Suggested Workers Compensation Code(s): 9501 Painting – Shop Only & Drivers, 9554 Sign Installation, Maintenance, Repair, Removal, or Replacement NOC – Away From Shop & Drivers

Amusement Park Insurance – The Bottom Line

Amusement park insurance is crucial for companies operating amusement parks to protect against risks and liabilities associated with accidents, injuries, and other incidents. 

Consulting an experienced insurance broker can help park operators obtain adequate coverage. By proactively managing risks and having sufficient insurance, amusement parks can provide a safe and enjoyable experience for visitors while minimizing potential financial and reputational harm.

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