With any business, many things can go wrong on a daily basis. Operating a movie theater is no different. Whether you own a chain of cinemas or a single-screen theater, movie theater insurance can provide peace of mind so that you can focus on operating, marketing, and growing your business.
What Is A Movie Theatre Insurance?
Movie theater insurance, also known as film house insurance, protects theater owners from the risks that come with operating a movie theater. From a fire damaging the building or an expensive projector being damaged due to an electrical surge to a customer tripping and injuring themselves in the dark, there are many types of risks that movie theaters can be protected against if they’re covered by the right insurance.
What Does Movie Theatre Insurance Cover?
Movie theater insurance aims to cover the unique risks that come with operating a cinema. Therefore, standard movie theater insurance typically includes:
- Commercial property coverage: This covers buildings and their contents, such as projectors, screens, theater seats, and popcorn makers.
- Business interruption coverage: Under this section of your policy, you’ll be covered if your theater is forced to close due to an insured loss (i.e. a fire that damages your screens).
- Commercial general liability coverage: This protects the policyholder against third-party claims of bodily injury and property damage due to negligence like a slip and fall or allegations that food served made them sick/ill etc..
What Are The Benefits of Having Movie Theatre Insurance?
The main benefit of movie theater insurance is that you will be covered if an incident occurs that results in financial loss. For example, if a high end personal trainer visiting your theater slips in the dark and breaks their ankle, they could sue you for loss of income. Lawsuits can be incredibly costly, but with movie theater insurance by your side, your insurance provider will help cover the costs. Ultimately, having movie theater insurance is beneficial as it helps you avoid financial ruin, such as bankruptcy, should something go wrong in your theater.
What risks do Movie Theaters face?
Risks movie theaters face include property damage, bodily injury, lawsuits, fires, and weather-related incidents. Examples of scenarios where having moving theater insurance would be beneficial include if a customer slips, falls, and breaks their leg in a dark theater; if a customer gets food poisoning after eating something from the concession stand if costly promotional displays are stolen and damaged, if a fire, earthquake, flood, or other severe weather damages the building; if a projector breaks preventing the film from playing, and if bathrooms are vandalized by rowdy teenagers. As you can see, there is a wide range of circumstances in which having movie theater insurance can come in handy.
Why do Movie Theaters need insurance?
Movie theaters need insurance to protect themselves against financial losses that may result from unexpected events. From property damage and loss of income to a lawsuit, there are many risks associated with operating a movie theater.