Ghost Tour Business Insurance
Getting insurance for your ghost tour business is essential.
Ghost tour businesses need to be protected against claims arising from things like personal injury, emotional distress, and false advertising.
For example, a customer feels traumatized after taking part in a ghost tour, or a customer becomes injured after following a tour guide.
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 Ghost Tour Business
General liability insurance is — generally speaking — one of the most important insurance policies for ghost tour businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Your ghost tour business might want to supplement its insurance coverage with some of the following policies on top of general liability:
- Workers’ compensation insurance
- Commercial auto insurance
- Data breach insurance
- Commercial umbrella insurance
The places your business can buy coverage from are commonly divided into one of two groups:
- Traditional brick-and-mortar insurers — These insurers, which include the likes of Hiscox, The Hartford, and Nationwide, are favored by some for their long history in the insurance industry and general reliability. However, many are opting to switch away from these providers as their higher overheads mean they have to charge much higher prices.
- Online insurers — These insurers, which include the likes of Next and Tivly, have the advantage of being based purely online. This enables them to offer their clients extra convenience, speed, and affordability. Additionally, by taking advantage of AI, they are able to provide highly personalized coverage.
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Cost of General Liability Insurance
On average, ghost tour businesses 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 ghost tour business 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 Ghost Tour Business
Example 1: Your ghost tour business often works with other local businesses to provide special group packages and incentives. While touring your office, another business owner trips over a box, breaks an arm in the resulting fall, and demands your company pay for his medical care. General liability insurance would cover his medical treatment.
Example 2: While loading your tour van with special ghost-hunting equipment, an employee loses control of the dolly and it crashes into a customer’s luxury car. The impact causes extensive damage and the customer threatens to sue you for damages. General liability insurance would cover the customer’s vehicle repair costs and your legal fees in the event of a lawsuit.
Example 3: A competitor sues you for libel. While you disagree with the libel claim, you know you need to hire an attorney. General liability insurance would pay for your legal fees and any required settlement.
Other Types of Coverage Ghost Tour Businesses 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 or death benefits stemming from a workplace accident.
Commercial Auto Insurance
Any vehicle you use primarily for business — such as for transporting tour groups between haunted locales — requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business materials you carry in your vehicle.
Data Breach Insurance
Also known as cyber attack insurance, this coverage protects your business from liability if a cybercriminal hacks into your computer system, steals sensitive customer data, and your customers sue you for damages. In the event of such a lawsuit, data breach insurance would cover your legal fees and any settlement payouts.
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.
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 ghost tour business:
- 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.
Ghost Tour 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. Making sure your ghost tours possess adequate business insurance is a key consideration to keep in mind before you commence operations.
Without it, your business’s assets will be completely vulnerable to any and all risks they may face, let alone the legal liability in cases where your business is obligated to carry specific policies (e.g., workers’ compensation).
Not necessarily. Certain exceptions may be written directly into your ghost tour business 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.