Fun parks, county fairs, carnivals, and traveling circuses offer excitement and frights for children of all ages. However, a sudden fire can turn these events into nightmares for both attendees and owners. Attorney Bill Voss addresses the biggest losses caused by fire in the traveling entertainment industry and offers tips on getting maximum payment for your losses after a fire.
Fire Damage to Fun Parks and Tourist Attractions
Although you may already have a business owner’s policy, there are many costly gaps in commercial coverage. A fire at an entertainment venue can cause significant losses, and owners may struggle to pay for:
- Rides and amenities. Your property coverage should be tailored to the specific type of entertainment and amenities you offer, and you should know the total replacement value of each one. For example, the damage done to stationary roller coasters can be much more costly than damage to transportable rides and funhouses. Make sure your policy limits are high enough to cover a total loss, even if it means extra deductibles or buying a depreciation reimbursement policy.
- Semis, trucks, and trailers. The vehicles you used to transport mobile equipment should all be listed on your comprehensive commercial auto policy. Depending on the extent of your operations, this can include horse and animal trailers, semi-trucks, food vans, and other vehicles used for business purposes.
- Rented equipment. Your own property damage coverage doesn’t extend to someone else’s property, such as equipment you use under a long-term or short-term lease. If you rent your rides, tents, food trucks, or other equipment from a third party, you should insure these items under a rental policy.
- Leased premises. You may be required to carry insurance to cover fire damage to the park, fairground, or other premises where your equipment is located. Rented premises insurance is usually available as a separate policy endorsement, and may be purchased in limits of $100,000 to $300,000. This coverage applies if the fire on the premises, or the damage to the landholder’s property, is deemed to be your fault.
- Water damage. Flooding and electrical damage from firefighting hoses can muddy fields and cause electrical equipment to short out. Your commercial policy may provide funds for damage incurred in extinguishing the fire under flood insurance or a biohazard cleanup extension.
- Yearly profits. If you do the majority of your business in a certain season, you may need seasonal income protection to pay for increased losses during your busiest time of year. You may also choose special event insurance to replace profits from a high-earning event that was canceled due to a covered loss, such as the early termination of a city booking.
- Animals. If your entertainment business includes animals, they should be protected under livestock and stock mortality insurance policy. In order to get full payment, each animal should be specifically listed (especially in larger operations such as circuses or fairs) and coverage for both fatalities and or animals that go missing after a fire.
- Mobile equipment. Any operation that requires moving vital equipment from one venue to another should have a strong inland marine insurance policy. This coverage pays to replace any property (such as lighting rigs or speaker systems) damaged in transit to another location or stored in an offsite facility.
- Expected income. Business interruption insurance is the single most valuable form of insurance available to commercial enterprises. This insurance replaces lost expected income for up to six months after a covered loss, allowing you to continue to pay your employees’ salaries, pay insurance premiums and rental fees, order new machinery, and keep your operations afloat while you recover from a fire.
Fire Insurance Claims for Entertainment Operations Are Often Denied
If you faithfully paid your premiums for years only to have your commercial claim denied, the Voss Law Firm can help you get the compensation you need to save your business. Fill out our contact form today to get answers to your questions, or start reading your copy of our free book, The Basics of Commercial Insurance Claims.
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