Movie Theater Business Insurance
Getting insurance for your movie theater is pivotal.
This is because you will want to protect your business’s commercial assets from a plethora of different disputes, such as those that relate to property damage and/or theft, employee injuries, and product liability claims.
For example, an employee could end up getting food poisoning after consuming food in your premises, or could get accidentally injured as a result of slipping and falling down your theater’s stairs.
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 Movie Theater
General liability insurance is — generally speaking — one of the most important insurance policies for 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
Even so, it is important to understand that your movie theater will likely benefit from purchasing additional insurance policies.
This is because a general liability policy will not be able to “fully” cover it from all angles.
Additional coverage options you may want to consider for your movie theater include:
- Commercial property insurance covers the cost of replacing and/or repairing malfunctioning, damaged, or stolen movie theater equipment.
- Workers’ compensation insurance covers you in the event that a legal dispute arises between you and one of your business’s employees.
- Business interruption insurance covers part of your lost income in the event that you are required to temporarily close down due to a fire or other covered risk.
When you are purchasing your business’s coverage, you will need to pick between one of the following two types of business insurers:
- Traditional brick and mortar insurers — Popular choices among small business owners include The Hartford and Hiscox.
- Online insurers (recommended) — Popular choices among small business owners include Next Insurance and Tivly.
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Cost of General Liability Insurance
The average movie theater 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 a 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 Movie Theater
Example 1: A patron slips on the stairs on the way up to his seat, falling forward and sustaining injuries to his knee and wrist. Your general liability insurance policy will cover the cost of treating the guest’s injuries, up to your policy limits.
Example 2: An employee forgets to put out a “Wet Floor” sign in the bathroom after mopping. A guest slips and falls on the wet tile, sustains injuries, and decides to file a lawsuit against your theater. A general liability insurance policy will pay for the cost of defending yourself from the lawsuit. It will also pay the cost of settling with the injured party if necessary.
Example 3: An employee at the concession stand fails to hear a customer mention a food allergy. The employee serves the customer food containing the allergen. The customer has a severe reaction that requires medical attention and subsequently files a claim against your business for damages. Your general liability insurance will cover your legal costs, up to your policy limits.
Other Types of Coverage Movie Theater 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
In the event of a fire or another unexpected disaster, the products and equipment in your movie theater—such as the concessions you offer and movie projectors—could be lost. Paying for the replacement of all these products, along with any real estate damage, would be costly. A commercial property insurance policy would provide coverage for your commercial property.
Workers’ Compensation Insurance
Your employees can be injured on the job in a variety of ways, from tripping on the theater stairs to developing repetitive motion injuries from running the register. When a work-related injury occurs, it is important to be able to cover the cost of medical care and lost wages for employees. Workers’ compensation is legally required coverage that ensures that you do not have to bear the burden of paying for such medical care or lost wages.
Commercial Umbrella Insurance
A general liability insurance policy serves as a good foundation for insuring your business, but it does have limits. If you find yourself in a situation where your general liability limits are exceeded, such as losing a big lawsuit, the remaining costs will have to be borne by your business—unless you have a commercial umbrella policy. With an umbrella policy, once your general liability limits are reached, the umbrella policy takes over.
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 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.
Movie Theater 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 you do. This is because you will want to ensure that your business has purchased all of the required business insurance coverage policies before any liability arises, and this could happen as soon as you start operating.
For a movie theater, liability could arise as a result of a customer or employee injury, copyright violation, or property damage dispute.
Not necessarily. Certain exceptions may be written directly into your 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.