A hurricane causes havoc to anything that lies in its path, including family entertainment parks and facilities. While damage to leisure properties may seem secondary to the loss of homes and vehicles, owners of fun parks, miniature golf courses, and traveling fairs could suffer the loss of their livelihoods due to a severe storm. Attorney Bill Voss explores vital hurricane insurance coverages for tourist attractions, including policy extensions that can help minimize losses.
Essential Hurricane Damage Coverage for Tourist Attractions
Just as with any other form of commercial insurance, your entertainment property coverage should be tailored to the specific needs and requirements of the facilities offered. Knowing the true value of all of your amenities—and purchasing a policy that reimburses depreciation—is a great way to prevent an insurer from offering too little on a hurricane claim. That said, there are some policy endorsements and forms of coverage that can benefit a wide range of entertainment operations, including:
- Rental insurance. Organizations that operate carnivals, state fairs, and traveling festivals may rent their rides and equipment from other vendors through a long-term lease or short-term rental. Without rental coverage, damage to booths, compressors, machinery, bounce houses, slides, lights, tents, and other rental equipment may have to be paid for out-of-pocket.
- Inland marine coverage. If you run a mobile funfair, rodeo, or other operation that is constantly moving from one place to another, inland marine insurance will cover any property that is damaged while in transit or when stored offsite.
- Refrigerated goods coverage. Concessions may be lost due to flooding or power interruptions, spoiling your perishable food items and temperature-sensitive products. Refrigerated goods coverage can help make up for these losses.
- Commercial auto insurance. Flatbed trucks, horse trailers, food trucks, and other business vehicles should be protected under a commercial auto policy that specifically protects against flooding.
- Livestock insurance. Circuses, rodeos, horse shows, petting zoos, agriculture displays, and other animal entertainment should be protected under livestock insurance, especially stock mortality insurance, just in case pens are damaged or flooded.
- State-specific coverage. Each state is allowed to set its own rules concerning insurance coverage for specific amusement park rides. For example, Texas law requires at least $100,000 bodily injury and $50,000 property damage coverage on all rides in a fixed location that are designed for children aged 12 and under (Class A), as well as at least $1,000,000 for bodily injury and $500,000 for property damage for larger (Class B) rides.
- Risk Purchasing Group coverage. A Risk Purchasing Group (RPG) allows smaller outdoor or leisure operations to get the insurance they need without paying high prices due to coverage risks. An RPG, such as International Special Events & Recreation Association (ISERA), allows each member to purchase insurance through a certificate under the master policy, providing up to several million dollars in coverage.
- Flood insurance. Most commercial policies will not cover flooding caused by a natural disaster such as a hurricane, so owners should purchase an additional policy for flooding damage through the National Flood Insurance Program (NFIP).
- Seasonal and special event insurance. If your operation makes most of its profits at a funfair time of year, seasonal insurance can provide additional payment for covered losses that occur during peak business times. Similarly, event cancellation coverage can replace income losses for special events that were canceled due to bad weather.
- Business interruption insurance. Business income protection replaces lost profits for up to six months after a covered event, allowing offsite operations to continue and employees to be paid during the restoration of the main location and inventory.
If you are having trouble getting the full value of your hurricane damage claim from your insurance company, the Voss Law Firm can examine your policy, investigate the details, and fight on your behalf. Simply fill out the contact form on this page today or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.