Question 1

What is the 'Rate per $1,000 of Revenue'?

Accepted Answer

This is a standard way insurance premiums are quoted for businesses like adventure parks. An insurance underwriter assesses your risk and offers you a rate, for example, '$65 per $1,000 of revenue.' This tool uses that rate to project your total annual premium.

Question 2

Why is revenue a factor in my insurance cost?

Accepted Answer

Insurers use revenue as a primary indicator of your park's exposure to risk. Higher revenue generally means more guests, more activity, and therefore a greater statistical chance of an incident occurring. It's a key metric for scaling the premium to the size of the operation.

Question 3

What factors can lower my insurance rate?

Accepted Answer

A strong, documented safety program is the best way to lower your rate. This includes:Certifications: Adhering to standards from bodies like ACCT or PRCA.Documentation: Meticulous records of staff training, equipment inspection, and incident reports.Low Claims History: A track record of few or no claims is a powerful negotiating tool.Risk Management: Proactive measures like requiring participant waivers and clear safety briefings.

Question 4

Is this estimate a final quote?

Accepted Answer

No. This tool provides an estimate for budgeting and comparison purposes only. A final insurance premium can only be provided by a licensed insurance broker after a thorough underwriting process. This tool is designed to help you understand the mechanics of your pricing and to compare different potential quotes.

Question 5

What does 'coverage amount' mean and how does it affect my rate?

Accepted Answer

Coverage amount is the maximum amount the insurer will pay out per incident or per year (e.g., $1,000,000 per occurrence). A higher coverage amount (e.g., $5,000,000) will result in a higher rate per thousand, as the insurer is taking on more potential risk. You should work with your broker to determine the appropriate coverage level for your park's size and risk profile.

Liability Insurance Cost Tool

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Understanding Liability Insurance Costs

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