Last Updated: February 22, 2024, 10:39 am by TRUiC Team

Entertainment Company Insurance

Getting insurance for your entertainment business is essential.

Like all companies, entertainment businesses need protection from legal liability for claims involving product liability, breaches of contracts, personal injuries, and other alleged harms.

For example, a customer slips and falls in your place of business, or a supplier claims you breached a contract.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for an Entertainment Company

General liability insurance is — generally speaking — one of the most important insurance policies for entertainment businesses.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Many entertainment businesses carry other types of business insurance besides general liability policies. Some of these can include:

  • Commercial property insurance
  • Workers’ compensation insurance
  • Product liability insurance
  • Commercial umbrella insurance

When deciding where to buy insurance, note that you’ll find two basic types of business insurance companies: traditional and online. Traditional providers tend to be large and well established. They’re a safe bet, but they charge more because they use agents who sell policies out of physical offices. 

By contrast, online insurers have much lower overhead because they sell policies on their websites using AI and don’t hire agents. They’re faster, cheaper, and can provide more customized coverage that’s still of high quality. We recommend online insurers for most small businesses.

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Cost of General Liability Insurance

The average entertainment company in America spends between $500 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for an entertainment company 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for an Entertainment Company

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Example 1: While entering your restroom, a potential client slips and breaks her wrist and elbow. General liability insurance would cover her medical bills related to the accident.

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Example 2: After plugging in equipment for a show at a client site, an employee ignites an electrical fire that  damages the room and the client’s property. General liability insurance would cover the cost to repair the customer’s damaged property.

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Example 3: A competitor informs you they are suing for libel. General liability insurance would pay your legal fees as well as any damages awarded in a settlement.

Other Types of Coverage Entertainment Companies 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:

Commercial Property Insurance

If you own the building in which you operate, 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 replacing your business equipment and supplies after an accident so you can recover quickly.

Professional Liability Insurance

If a client decides your services ultimately injured them and files a lawsuit, professional liability insurance would cover your legal fees as well as any damages awarded in a settlement.

Commercial Auto Insurance

Every vehicle you use for business purposes requires commercial auto coverage. If you drive a personal car or truck to and from client sites, your personal auto insurance won’t pay for damages to your vehicle in the event of a work-related accident. Commercial auto insurance protects all vehicles you use on-the-job in the event of an accident.

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.

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 entertainment company:

  • 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.

Entertainment Company 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.

It’s only logical to want financial protection for your business from the start. As a result, you should purchase business insurance before opening your doors. Your state also may require some forms of business insurance, such as workers’ compensation.

Not necessarily. Certain exceptions may be written directly into your entertainment company 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.