As the air turns cooler and the leaves begin to fall, the minds of children and adults alike turn to that most terrifying time of year: Halloween. Your business or organization may find this time of year to be even more scary if you don’t have the proper coverage for your harvest festival, haunted house or corn maze. That lack of insurance could be costly.
Haunted by Injuries
Businesses and nonprofits use this time of year to drum up donations or new business by putting on haunted houses or some sort of fall festival. These activities are usually manned by volunteers and inexpensive to produce, resulting in maximum benefit for the organization.
Unfortunately, accidents happen. Scared children may be injured trying to run away from decorations or performers. In 2014, a teenager in Ohio died from a heart attack at a haunted house attraction. Dark places with bad lighting are trip and fall hazards.
In addition, certain aspects of your attraction may be offensive to others, resulting in lawsuits for discrimination and even emotional distress.
Spooked by No Coverage
Even the most comprehensive of insurance policies can fail to protect your business or nonprofit without prior knowledge of your activities. Your liability insurance policy may not offer coverage for your haunted house or fall event for a couple of reasons:
- If coverage is limited only to designated operations and your annual haunted house wasn’t scheduled on the policy, coverage may not exist for those operations, and any injuries resulting from the event would not be covered by the policy.
- If the event is held off your normal business premises at an alternate location and that location isn’t scheduled on your policy, there may not be coverage.
It is important that you discuss all planned activities and fund raisers with your insurance broker when purchasing new insurance coverage or at renewal, so that small problems don’t become big ones down the road. Failure to do so could result in extreme loss of funds or profits.
Light in the Darkness
Depending on the terms of your policy, there may be coverage for a special event, so review your policy and talk with your broker about your event to make sure. If there is no coverage an endorsement may be available, or a special events policy could be the answer.
The best way to protect your business or nonprofit organization is to schedule a risk management analysis with your Hayes Broker. Coverage can be purchased for events during any season, not just the spooky ones.