Running a successful movie theater is about more than just providing thrilling entertainment for your customers, it’s also about protecting your business. Movie theater owners face tons of the same hazards as many other business owners on a daily basis, from natural disasters to vandalism and beyond. Fortunately, a South Carolina independent insurance agent can get your business equipped with the right coverage. But first, here’s a guide to movie theater insurance.

What Is Movie Theater Insurance?

No matter where you’re located, movie theater insurance is essentially a special type of business insurance customized to protect owners of movie theaters. The agreement between the insurance company and the movie theater owner states that the insurer will cover financial losses that befall the business. Of course, only specific perils stated in the policy will be covered by the insurance company. Policies each come with a list of non-covered perils as well.

How to Insure a Movie Theater in South Carolina

The thing about movie theater coverage is that one policy won’t work for every type of movie theater, or each specific business owner. With the help of your South Carolina independent insurance agent, you’ll work together to assemble a package of different coverages to protect yourself and your business against risks unique to you. Movie theater insurance is designed to keep your business afloat following a huge disaster such as property destruction or lawsuits.

Your independent insurance agent will help identify the right types of coverage for you as they learn more about your specific movie theater and its operations. Since movie theater insurance is so customizable, you’ll be able to work together to build a policy that fits not only your business’s needs, but also the needs of your bank account.

What Does Movie Theater Insurance Cover in South Carolina?

Movie theater insurance is set up to protect business owners against potential threats. This includes movie theaters in South Carolina. Your policy will include the basics of business insurance coverage, with several specific coverages tailored to your unique business added on. The more risks involved in your business, the more coverage you’ll need. But here are a handful of commonly selected coverages in movie theater insurance packages to start off.

Your South Carolina movie theater insurance package can be assembled from a combination of the following coverages:

• General liability: This coverage protects you against property damage or injury claims made by a third party. 
• Workers’ compensation: If your employees become ill, get injured, or die from a work-related incident, this aspect of the insurance will cover the financial ramifications. Coverage is mandatory in South Carolina. 
• Property Insurance: Covers loss of or damage to your physical property, including your movie theater’s building and any equipment or inventory inside it. Protected mishaps include fires, storms, and more.
• Business income: A part of property insurance, this aspect covers the financial loss suffered while a business is closed due to fire damage or other disasters.
• Signage coverage: Often times, a movie theater’s signage is expensive to either install or replace. Since signs live outside of the theater’s building, they’re constantly vulnerable to the elements of nature and thieves/vandals. This coverage provides reimbursement in the event you need to repair/replace your movie theater’s signage due to a covered peril.
• Utility interruption: In the event of an extended power outage or other catastrophe, your business’s operations may be slowed or even suspended which could mean a huge hit in ticket sales. This coverage provides compensation for lost income during these periods, as well as for damage caused to your property by the covered catastrophe.
• Cyber liability: In the event your movie theater’s computer system is compromised, sensitive or personal data may be stolen and even sold to third parties. This can include things like credit card numbers or personal employee records. Aside from having to pay to clean up your network’s security, your movie theater could also face a lawsuit. Coverage protects against financial and legal ramifications following a cyberattack.
• Personal & advertising injury liability: Typically, commercial general liability coverage excludes protection for advertising injury in the event the business is a part of the advertising industry. Movie theaters which show local advertisements before the previews roll often fall into this category, which means they need special coverage. Advertising injury liability coverage protects against damage to patrons who are harmed in any way by your movie theater’s advertisements.
• Specialty equipment coverage: Business owners may be required to purchase additional coverage to protect expensive equipment used in movie theaters like projectors and film screens. Talk with your South Carolina independent insurance agent to be sure all your specialty equipment has the protection it needs.

Your movie theater insurance package will be assembled by selecting the coverages that work for your unique business from a big list of available options. Coverage applies to everything from lost business revenue to potential legal/court fees and beyond.

What Does Movie Theater Insurance Not Cover in South Carolina?

Though movie theater insurance covers a lot of important components, it doesn’t cover just anything. The following are examples of commonly excluded perils under movie theater insurance policies in South Carolina:

• Employee dishonesty
• Breakdown of appliances such as steam boilers
• General wear and tear of equipment, etc.
• Routine maintenance fees
• Earthquake damage
• Nuclear reaction and war
• Power failure (unless it causes damage to computer systems)
• Robbery
• Pollution
• Temperature/humidity changes
• Inexplicably lost inventory
• Flood damage*

*In a coastal state like South Carolina that’s prone to flooding, you’ll most likely want to purchase additional flood coverage for your movie theater, or you may even be required to have it by your mortgage lender. Your South Carolina independent insurance agent can give you more information about finding coverage.

What Are the Benefits of Movie Theater Insurance in South Carolina?

Movie theater insurance provides protection to South Carolina business owners in a number of ways. Beyond the business’s physical assets and building, many components of your movie theater stand to be destroyed or otherwise harmed by common threats.

There are four major benefits to having movie theater insurance:

• Protection against legal trouble: A costly and damaging event like a fire could send a business into the red without the proper coverage. If the business was unable to pay off their loans, vendors, or employees, they could face serious legal consequences. Movie theater insurance helps prevent these ugly matters from surfacing.
• Protection against a damaged reputation: Often times, huge incidents affecting businesses end up in the media. When it comes to customers’ personal property getting lost, damaged or destroyed, or someone getting injured or ill on your premises, word about their upset could spread quickly and even turn from gossip into media coverage. Having the right movie theater insurance can help prevent your business’s reputation from going up in flames.
• Protection against spoilage: One of the most treasured aspects about movie theaters is the concessions. When it comes to your inventory of soda, candy, popcorn, nachos and other snacks, just one incident can ruin the entire stock. Movie theater coverage can help the business recover from lost goods.
• Protection against bankruptcy: Imagine a severe storm or other terrible incident like an airplane crash that literally wipes out your movie theater entirely. Without the right insurance, the business owner could easily be forced into bankruptcy. Movie theater insurance helps businesses stay open, stay afloat, or rebuild following massive destruction.

Your South Carolina independent insurance agent can help you review your movie theater insurance policy to answer any remaining questions about your coverage. They’ll also be able to help you figure out whether you’ve got enough coverage or if you should purchase more.

How Much Does Movie Theater Insurance Cost in South Carolina?

Really, it depends on a number of factors. Movie theaters located in South Carolina, however, might pay quite a bit more for coverage than business owners further inland, due to the state’s increased risk of weather-related perils like hurricanes. It’s hard to offer an average figure though, since each movie theater is unique.

The following factors will influence the cost of your movie theater insurance policy:

• The specifics of the movie theater: This involves more than just what kind of movies are premiering at a given time. The kind of equipment your movie theater uses and the specific operations taking place will affect its risk-level to insure. Obviously, more danger means more money for insurance.
• The location of the movie theater: Larger cities tend to have higher costs for insurance, but it goes beyond that. Depending on where you are specifically in South Carolina, your location may be more prone to various weather-related risks. Movie theaters right along the Atlantic Coast or in Myrtle Beach, for example, may have premiums up to 20% higher due to the increased risk of hurricane damage.
• The number of employees: The more you've got, the more workers' comp you’ll need. Simple as that.
• How much business you generate: Premiums are calculated based on business projections for the upcoming year. If your workload doubles, your premium most likely will too.

Your agent can work with you to find a policy that fits within your movie theater’s budget. Have your financial restrictions in mind before you start shopping for coverage to help speed the process along.

Why Work with a South Carolina Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your area code? Independent insurance agents act as your own personal insurance shoppers, offering you tons more options than one-policy companies. With just one call, they’ll hook you up with multiple quotes.

South Carolina independent insurance agents are armed with knowledge on what coverage is needed in your area, and they’ll get you set up with just enough of it — not too little, not too much. They’ll handle all the heavy lifting so you can rest assured you’ll be set up with the right coverage at the right price.

They’re not just there at the beginning either. If disaster strikes, your South Carolina agent will be there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to. Now that’s thinking ahead.