Building Your Haunted Attraction Insurance Program

Running a haunted attraction can be a thrilling and profitable pursuit, but it does require extensive planning. Beyond the actual design and setup of the attraction and event marketing, business owners must also consider what steps are needed to protect their attraction year-round. The first step in securing this protection is finding the right insurance package.

Haunted Insurance Versus Standard Business Insurance

Business insurance and Haunted Attraction insurance are not the same. Certain foundational coverages, including General Liability, Commercial Property, and Business Interruption, are standard across most general business plans and can be grouped into a standard BOP (Business Owner’s Policy) to mitigate risks related to commonplace lawsuits and property damage.

A Haunted House program should build on this standard plan while adding other selected coverages that protect against risks unique to haunted attractions. Additionally, Workers’ Compensation is usually needed, and may be included in the insurance program or purchased separately, depending on the state in which your attraction operates.

Understanding Which Additional Coverages Are Needed

Is Your Venue Indoor or Outdoor?

Where you operate can affect coverage selection. Event Cancellation Insurance can be incredibly beneficial for attractions that operate exclusively outdoors because it offers protection should inclement weather force you to shut down. By comparison, indoor venues are much less exposed to this risk, so Event Cancellation Insurance may not be worth the additional expense.

Are You in an Earthquake or Flood Zone?

Standard insurance coverages, whether for Property or Event Cancellation, don’t include earthquakes or floods. If you’re in an earthquake or flood zone, plan to get disaster-specific coverage.

Is Your Venue Permanent or Temporary?

Whether your attraction operates year-round or pops up exclusively for a six-week seasonal run impacts property protection selections. A permanent, year-round facility requires Commercial Property Insurance for buildings, which protects against perils such as fire, vandalism, and wind (in most cases). A temporary setup may only need Commercial Property Insurance for equipment, staging, and props.

Of course, how long you operate also dictates when your policy should be in place. Policies can be set up beforehand, with a specific activation date. You can get a policy for several weeks or months if you operate seasonally.

Do You Own the Venue?

You’re generally responsible for insuring spaces you own. If you own the venue, then you should have property coverage that extends to the buildings and other structures on your premises. If you lease, Tenant’s Improvements and Betterments Insurance can be procured for the improvements or customizations you make to the space.

Will You Sell Alcohol on Premises?

In all states, every business must obtain some type of liquor license if alcohol is sold on premises. While every state is different, some require Liquor Liability coverage before such a license can be obtained. We recommend purchasing more than the minimum required amount, as alcohol-related liability lawsuits are excluded from other coverages and can quickly become costly.

Do You Have Live Actors?

If you hire live actors as employees, most states (with the exception of Texas) will require that you carry Workers’ Compensation insurance, which protects employees if they’re injured or become ill on the job. For haunted attractions, this is especially important since employees will be working in the dark with potentially dangerous objects.

Although some accidents might be expected in this type of environment, all business owners are responsible for maintaining a safe workplace. Some exemptions may be available for businesses that hire independent contractors or recruit volunteers to operate the attraction. An insurance agent can help you understand if Workers’ Compensation is required for your specific attraction.

Is Your Venue Contact or Non-Contact?

Physical interaction between actors and guests introduces unique liability concerns. Unwanted contact, even when part of a scripted scare, can lead to claims such as assault or battery. If you incorporate any contact between workers and guests, Assault and Battery Coverage can greatly reduce your exposure to this concern.

What Equipment Will You Use?

Haunted attractions commonly use a wide variety of equipment, ranging from lighting rigs and fog machines to full sound systems.

While Commercial Property coverage usually protects against damage and theft, it doesn’t safeguard against malfunctions. We recommend Equipment Breakdown coverage in these circumstances, which covers standard and emergency repairs should equipment break down due to mechanical, electrical, or pressure-system failures.

Will You Use a Vehicle?

If your venue will transport guests around in a car, truck, tractor, or other vehicle, you need Commercial Auto insurance because vehicles are excluded from standard Commercial Property and Equipment Breakdown coverages.

What Physical Hazards Are Present?

Haunted attractions are often dark, contain hidden areas, and can obscure vision with fog and strobe lights.

Because of these increased risks, haunted attractions need to have an appropriate General Liability coverage (e.g. General Liability requirements for a haunted attraction will not be the same as requirements for a tax agency). General Liability typically covers commonplace accidents, such as the classic slip-and-fall.

Build a Strategic Program With Allied Insurance

Allied Insurance Managers helps businesses across the United States build strategic insurance programs that ensure state compliance, provide year-round coverage, and offer comprehensive protection against unique industry-specific risks.

Whether you’re starting a haunted attraction for the first time or thinking about switching coverage, contact us today to schedule a consultation with an Allied Insurance agent. As an independent insurance agency, we partner with a wide range of carriers and can help you find the most cost-effective and robust insurance package.