Amusement Park Insurance Cost
In order to determine the average cost of amusement park insurance, we scoured industry reports, market reports, media publications, insurance company websites and statistics, and amusement park annual reports. Through our research, we were unable to determine the industry-standard cost of insurance as a percentage of revenue, however, we found that the average amount spent annually on insurance by United States amusement parks is $300-$800 per $1 million in coverage. In addition, we found that Six Flags spent approximately 0.56% of their revenue on insurance in 2020 maintaining coverage up to $100 million. Details of our findings have been provided below.
Amusement Park Insurance Overview
- Amusement park insurance provides coverage for a park's assets in the case of injury or property damage on the premises.
- In 2016, there were approximately 30,000 emergency room visits in the United States linked to amusement parks and children between the ages of ten and fourteen are the most likely to be sent to the ER accounting for 17.9% of injuries.
- Amusement park insurance regulations vary by state, however, mobile parks are regulated by the CPSC.
Amusement Insurance Cost
- On average, United States amusement parks spend $300-$800 annually per $1 million in coverage
- Small parks pay an average of $97-$159 monthly per $1-$2 million in coverage.
- Assuming that most parks get the suggested $10 million in coverage, the industry average spent on parks for insurance is estimated at $3,000-$8,000 ($300-$800*10) per year. In addition, assuming small parks purchase between $1-$2 million per year, the average spent by small parks is estimated at $1,164-$1,908 ($97-$159*12) annually.
- After exhausting precompiled reports, we scoured annual reports for Disney Parks and Six Flags in order to determine a benchmark for the percentage of revenue spent on insurance annually. While Disney did not disclose any financial details of their insurance, Six Flags spent a calculated 0.56% [$2 million (insurance cost)/$356.58 million (revenue)=0.0056] of their revenue in 2020 on insurance for their parks.
- Factors that impact the cost of amusement park insurance include the following:
- Claims history
- Number of employees
- Per-occurrence limit
- General aggregate limit
- After an exhaustive search of popular amusement park insurance companies, we determined that coverage generally amounts up to $10 million but ranges from $1 million to $25 million, depending on the policy. Companies analyzed include the following:
Amusement Insurance Types
- Amusement Park General Liability Insurance Coverage: