For the Halloween fanatic running frantically from costumed pursuers, the insurance policies that make the “haunted” attraction possible are probably the last thing on their mind. After all, the most convincing attractions blur the line between reality and fantasy, where mundane administrative details don’t matter.
However, for the folks behind the madhouse, making sure the right coverage is in place is a very real concern. Without it, the real horror begins.
More than 4,500 haunted houses spring up each year, bringing with them an estimated $500m in revenue and a whole host of unique insurance needs. Even people hosting a private haunted house may be at risk, and producers should advise their clients accordingly, said Insurance Information Institute Vice President Loretta Worters.
“Anyone hosting a Halloween party should take steps to make sure they have the proper insurance,” Worters said. “Social host liability can have a serious impact on party throwers.”
Michigan-based InPro Insurance Group, which specializes in haunted attraction insurance, recommends that producers sell general liability coverage, as well as excess liability and volunteer accident insurance to owners of haunted houses.
Patrick Konopelski, president of the Haunted Attraction Association—a group that advises owners on safety regulations and proper insurance coverage—said props and other decorations are among the most problematic aspects of an attraction to insure.
"A noose conjures up fear and death, and people are tempted to use that as a decoration or a scene, but when made properly, it can be a killing device," Konopelski told The Morning Call.
Props such as these, which could be considered weapons, may not be covered by insurance. Producers should make sure attraction owners don’t experience an unexpected shutdown by walking through the owner’s plans and advising against anything potentially dangerous.
Insurance policies for haunted houses can range from a few hundred dollars—for the private parties Worters mentioned—to more than $20,000 for attractions running for several weeks and attracting large audiences.
To help clients save money, Konopelski said producers can recommend getting insurance policies that cover other company attractions during the year, adding on special coverage needs for haunted houses in the fall.
