The Cost of Haunted Attraction Insurance: What You Need to Know

So many people often ask us what they can expect insurance to cost, but the truth is that it’s not that easy because insurance packages are not one-size-fits-all solutions. Whether we’re talking about homeowners insurance or something as specialized as haunted attraction insurance, many factors, including geographical location and property condition, can impact insurance premiums.

Because it’s officially “spooky season,” in this blog, we’ll focus on the factors that can both increase and reduce haunted attraction insurance premiums.

Factors That Increase Premiums

Unfortunately, more factors cause premiums to rise rather than decrease. These factors include potential safety risks, special effects used in the attraction, live actors, the actual space and location of the venue, whether alcohol is sold, and more.

General Safety Risks

It’s all fun and games until someone gets hurt! One of the biggest insurance risks for any business is personal injury liabilities. Haunted attractions are definitely not an exception, especially because they’re designed to startle and disorient people.

Elements like steep stairs, uneven surfaces, and tight spaces can pose serious risks, increasing the likelihood of slips, trips, and falls. Tight spaces, in particular, are carefully examined by insurance providers because they can complicate compliance with fire safety and emergency egress codes, increasing the chances of liability claims.

Special Effects

Special effects, such as fog machines, strobe lights, and pyrotechnics, can be great for creating an immersive and scary atmosphere. However, they can also a) reduce visibility, b) trigger seizures, and c) increase overall personal injury and property damage risks. Although these elements can improve the experience for visitors and potentially draw larger crowds, you need to have stringent safety measures, emergency protocols, and well-trained staff to help mitigate some of the impact on insurance costs.

Actor Interactions

Interactions between actors and visitors significantly impact insurance premiums in several ways.

First, some haunted attractions allow or encourage actors to touch or physically interact with guests, which can escalate the risk of accidental injuries or misunderstandings that may lead to claims of assault or inappropriate behavior.

Second, actors may jump out, shout, or follow visitors, which could provoke extreme reactions from visitors, and the unpredictability makes it harder to mitigate potential liability risks.

Lastly, intense interactions could distress some visitors (anxiety attacks, etc.,) which could lead to liability claims. These are all potential factors that insurers have to consider when evaluating the risk of a haunted attraction, so consider enforcing a no-touch policy, even if it makes the experience slightly less intense for visitors.

Location

Location is one factor that many people don’t often consider affecting insurance, but it impacts nearly every type of insurance policy!

Areas prone to natural disasters (floods, hurricanes, earthquakes, and now wildfires) pose higher risks for property damage, so haunted attractions in these areas will see increased insurance premiums. There is really no way to mitigate this other than choosing a different area.

Locations with higher crime rates may also see higher insurance premiums due to an increased risk of break-ins, etc. And, haunted attractions in densely populated urban areas may also see rising costs, too, because there is a higher likelihood of people filing claims.

Claims History

This factor is pretty standard across most insurance policy types. If you’re a newer attraction, you won’t need to worry about this as much, but keep in mind that insurance premiums may rise in subsequent years based on the number of filed claims you have. As insurers, we always assume that past claims are indicative of future events. So, if you have a history of filing claims, especially if they happen frequently or involve significant payouts, most (if not all!) insurers would see this as a higher risk.

Age & Condition of Structures

Older buildings are often used for haunted attractions because their antiquated appearance is inherently creepy. However, these older structures pose higher risks due to potential structural weaknesses, which elevate the risk of accidents like fires and collapses. Older structures generally also require more maintenance and may not meet modern safety codes.

So, when choosing a venue, don’t choose one with a deteriorating roof or unstable flooring. Always make sure the structure you choose adequately meets your municipality’s building codes and regulations.

Prop & Set Hazards

Most haunted attractions have various types of props, whether it’s artificial fog, water effects, raised platforms, chainsaws, or animatronic objects. The nature and complexity of these props can cause insurance premiums to increase. Insurers will evaluate the potential hazards associated with these mechanical props, especially ones that visitors will interact with. The more complex the prop, the higher the potential liability. Additionally, any set designs that could cause fall or tripping hazards are considered higher risks.

Length of Operation

The length of time a haunted attraction operates influences insurance premiums. While it’s safe to say that most haunted attractions are seasonal (September through October), some operate year-round. As you might have guessed, the longer an attraction operates, the higher the insurance premiums because continuous operation means consistent risk exposure.

And, even with seasonal haunted attractions, unless you choose a new location each year, your venue will sit there, unused during the off-season. If there are construction or renovation activities during your off-season, they could carry their own risks for workers.

Selling Liquor

While not all haunted attractions serve beer, there are quite a few that have started selling alcohol, but this can pose a risk for several reasons.

1. People who are under the influence are even more unpredictable and could potentially threaten live actors.
2. People under the influence don’t have the best coordination and judgment, resulting in accidents. Even if you have safety measures in place, adequate lighting, etc., it might not matter once someone has had a few drinks in them.
3. Guests may also leave the venue while drunk, which can pose significant legal consequences.

This is important for us to mention because standard haunted attraction insurance policies typically do not include liquor liability coverage. If you plan on selling alcohol at your venue, please get this additional coverage because it will protect you against claims arising from damages or injuries and cover legal fees, settlements, and medical costs.

Liability Coverage Limits

Lastly, you need liability coverage—the challenge is balancing the potential risks associated with your attraction with the cost of insurance. While opting for higher liability coverage provides greater financial protection, it also results in higher premiums. Attractions with really elaborate setups, large numbers of visitors, or higher-risk features, such as pyrotechnics or intense actor interactions, should consider having more substantial coverage. If you’re not that type of attraction, you probably don’t need significantly high liability coverage.

One way to potentially decrease premium costs while maintaining a higher liability coverage is opting for a higher deductible—you just need to make sure you can comfortably afford the deductible you choose.

Also, remember that some jurisdictions may have specific insurance requirements for public attractions, including minimum coverage limits for bodily injury and property damage.

The best way to know how much liability coverage you need is to work with an insurer who can perform a comprehensive risk assessment and provide recommendations on how to balance those costs.

Factors That Can Reduce Premiums

If you’re starting to get a little disappointed by how many factors can cause a rise in premiums—don’t worry. You can take several steps to mitigate risks and lower potential costs, starting with having good safety protocols in place.

Comprehensive Safety Protocols

Having effective safety measures significantly decreases the likelihood of accidents and injuries occurring, which reduces the risk to insurers and potentially leads to lower insurance costs.

Safety protocols could include regularly maintaining props and sets, training actors on interaction guidelines, maintaining clear signage for potential hazards (we’ll talk about that in this next section), and ensuring there is adequate lighting in high-risk areas (such as uneven flooring or raised platforms).

Clear Signage

When people are going through a haunted attraction, they can be mentally and physically overwhelmed. Although sometimes people come for the shock, incorporating warning and safety signage might be in your best interest.

If you incorporate intense audio effects, strobe lighting, or mechanical props, have warning signs to prepare visitors for what to expect. These warnings reduce the shock factor and could help alert guests with health conditions, such as epilepsy or heart issues. You can also incorporate clear signage instructing visitors on safety protocols, such as not touching the props, running, or carrying beverages in the attraction. Having signs to direct traffic flow and point out emergency exits is also important.

Of course, people may not read the signs, but they can still help mitigate easily avoidable risks.

Liability Waivers

Having visitors sign a liability waiver is arguably one of the best ways to reduce insurance premiums. While this may not be the easiest strategy to implement for larger-scale attractions, it will significantly reduce claims because, by signing the waiver, visitors agree that they understand and accept the risks associated with the attraction. A waiver shifts the responsibility to the visitor rather than the attraction, although it doesn’t totally absolve the operator/attraction of the obligation to provide a safe environment.

Security & Medical Staff

It’s impossible to know the behavior and health of every visitor. Still, even if people knowingly come to a haunted attraction with a specific health condition, you’re still responsible for their well-being to an extent.

If your haunted attraction regularly draws large crowds, hire security or medical staff. Security can be especially important if alcohol is involved, and medical staff can help prevent minor injuries from becoming significant issues that could impact the frequency and severity of insurance claims.

Detailed Maintenance Records

Detailed maintenance records help demonstrate a proactive approach to risk management for insurers. Keep a log of all inspections, repairs, and maintenance activities that show you’re actively working to prevent accidents and malfunctions that could lead to injuries or property damage.

Age Restrictions

Children often pose a higher risk for haunted attractions because it’s easier for them to get distressed or wander off and get lost. Depending on age, they may also be unable to read warning signs and get injured. So, with that in mind, consider setting age restrictions by only allowing visitors 18 and up entry to your attraction.

In addition to preventing claims, age restrictions can provide a defense mechanism in case of lawsuits alleging that the attraction wasn’t suitable for children or was too intense for younger audiences.

Learn More About Costs for Your Attraction

Allied Insurance Managers provides specialty haunted attraction insurance packages for operators across the United States, including Arizona, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, North Carolina, South Carolina, Ohio, Tennessee, Virginia, and Wisconsin.

If you have questions about how much insurance would cost for your attraction, please contact us today to request a risk assessment and quote.