Drive-In Movie Theater Business Insurance
Getting insurance for your drive-in movie theater is essential.
Drive-in movie theaters need to be protected against things like claims of personal injury, property damage, and nuisance related to noise.
For example, a neighboring business complains of noise pollution from your theater, or a driver loses control on your premises and damages some of your equipment.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Drive-In Movie Theater
General liability insurance is — generally speaking — one of the most important insurance policies for drive-in movie theaters.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Other policies that drive-in movie theaters commonly buy in addition to general liability include:
- Workers’ compensation insurance
- Commercial property insurance
- Commercial umbrella insurance
- Data breach coverage
The vendors from which you can obtain coverage for your theater are commonly divided into two general categories:
- Traditional brick-and-mortar insurers — This category includes providers with physical premises, like The Hartford or Nationwide.
- Online insurers — This category includes providers without physical premises that base themselves online, such as Next or Tivly.
One of the main reasons that we recommend opting for online insurers over traditional ones is their affordability. Not only this but the fact that they are able to maintain a comparable level of quality and accuracy at this price level thanks to AI.
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Cost of General Liability Insurance
On average, drive-in movie theaters in America spend between $500 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a drive-in movie theater to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Drive-In Movie Theater
Example 1: A customer walks to your snack bar and trips on a speaker cord from another vehicle. As they fall, they break a wrist and hit their head. General liability insurance would cover their medical expenses as well as legal fees and any awarded settlement if they decide to sue.
Example 2: A parking spot with a broken speaker system needs its entire mechanism replaced. As an employee brings the new equipment over in a cart, they lose control of the cart and it hits a customer’s car. The impact damages a door. General liability coverage would cover the vehicle repair costs.
Example 3: While installing an ice cream machine in your snack bar, a vendor slips on the wet floor and injures their head and wrist. The vendor is upset that no “caution” sign was visible and threatens to sue. Your general liability policy would pay for the vendor’s medical bills and your legal fees if the claim goes to court.
Other Types of Coverage Drive-In Movie Theaters Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.
Commercial Property Insurance
If you own the lot and storage buildings used for your drive-in theater, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of repairing or replacing your specialized equipment and other business property after an accident so you can reopen as soon as possible.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Data Breach Coverage
If you offer a rewards program for your returning customers, you’re responsible for securely storing any personal data they provide as part of that membership. In the event of a cyber-attack or other data security issue, data breach insurance would cover your legal fees and any damages from a resulting lawsuit.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your drive-in movie theater:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Drive-In Movie Theater Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. We strongly recommend you obtain sufficient business insurance for your drive-in movie theater before it starts so that it’s protected from the inherent risks associated with this industry.
Please note that certain insurance policies may be a legal, operational requirement for your drive-in movie theater, such as workers’ compensation insurance.
Not necessarily. Certain exceptions may be written directly into your drive-in movie theater insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.