Do you run a haunted house business and you want to insure it? If YES, here are the best insurance policies for a haunted house and how much they cost.

Haunted houses are growing in popularity In the united states. Halloween and the vibe created by the Gen Z are propelling growth in this industry. However, just like in every other business, insurance is a must have in this business too.

To know the exact insurance you need in this business, it is advisable you check with your local fire inspector, state fire marshal, city fire department fire prevention division, or local city/town government offices for accurate information.

Nonetheless, irrespective of whether it is mandated, if you are running a professional haunt, it is a bad omen not to have adequate insurance. Note that something as unpredictable as a person tripping and falling could end up costing you tens of thousands of dollars or more if you don’t have insurance. Just like it is advised, safety should always be your first priority, which transcends to having insurance, just in case.

Cost of Haunted House Insurance In the united states

As with all other businesses, the cost of Haunted House insurance will largely be determined by the size and concept of the haunt. Bigger haunts with more props to insure will pay and cost more. But it is very necessary to invest in coverage for your haunt before your first interaction with a customer. Although the cost of insurance may seem high for a new haunt, it is best to be proactive when it comes to protecting your assets.

General Liability

General Liability Insurance is a comprehensive package that helps safeguard your haunted house against unforeseen events. This insurance covers potential hazards and risks that are not specifically excluded in your business insurance policy.

This liability insurance is very necessary for haunted houses because you have so many customers going through your doors each event. If a customer injures him or herself while on your premises, general liability will cover it. If a customer’s property is harmed in some way while they are at your business, general liability will cover that as well. It also safeguards your haunt if a customer is harmed or injured by your props as well.

Cost

  • Median cost per year: $300
  • Policy limit: $1 million per occurrence
  • Policy deductible: $800

Commercial Property Coverage

If you own the building the haunted house will operate in or the land you will set up the attraction on, having commercial property insurance is necessary. It aids in protecting the building itself as well as the attraction features from various types of risks. In a haunted house, each attraction, from the walls to props, are vital to the operation of the business. Minimizing damage to any equipment is also important.

Cost

  • Median cost per year: $400
  • Policy limit: $1 million per occurrence
  • Policy deductible: $750

Commercial Auto

Some haunted houses also use vehicles as a part of the attraction. A haunted forest or farm, for example, may pull employees through a field. These vehicles, whether they are high-powered tractors or full trucks, are valuable investments for the company. Because they are being used as a part of the business operation, companies should consider covering them with commercial auto insurance. This helps protect the vehicle’s value if an accident occurs and minimizes general liability claims.

Cost

  • Median cost per year: $370
  • Policy limit: $1 million per occurrence
  • Policy deductible: $500

Workers Comp

In the United States, you are mandated by law to protect your employees with workers comp insurance. Most haunted houses employ numerous individuals. Some are placed in dangerous situations where they can slip and fall or suffer another injury. Workers’ compensation covers on-the-job injuries and illnesses to employees and minimizes financial loss.

Cost

  • Median cost per year: $650
  • Policy limit: $1 million per occurrence
  • Policy deductible: $900

Commercial Umbrella Insurance

Note that damages from an incident can be significant. For instance, a customer suffering a hit to the head after tripping on the floor in the dark could potentially lead to an expensive lawsuit and settlement. Commercial umbrella insurance may help to defray those costs. It extends the amount of liability coverage beyond what the general liability insurance plan offers. It applies only when the limit of the general liability policy is exceeded.

Cost

  • Median cost per year: $400
  • Policy limit: $1 million per occurrence
  • Policy deductible: $800

Conclusion

Insurance is very necessary in a Haunted House and both the federal and state government mandate haunts to carry certain types of insurance. Operating a Haunted House is daunting enough without having to worry about suffering significant financial loss due to unforeseen and unplanned circumstances.

However, it is essential to invest in business insurance, but it should not be your frontline defense. Agreeably, insurance will compensate for your business’ financial losses after an incident occurs, but it is much better to avoid losses altogether. Consider using legally robust contracts and other business documents.

Also set up your business as a Limited Liability Company (LLC) to protect your personal assets, and streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

Solomon. O'Chucks
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