Casino and Gaming Insurance

Some of the top factors that affect the pricing of casino and gaming insurance during the underwriting process include:

• Gaming operations and services: Casinos pay higher premiums when they offer gambling, have a bar or restaurant, or host special events like tournaments or fireworks displays.
• Annual revenue: Businesses that earn more revenue are associated with costlier claims, which means they pay more for insurance.
• Number of employees: A bigger workforce means an increased risk of accidents and injuries, which raises the cost of general liability, workers' comp, and similar policies.
• Property value and condition: The age, condition, and value of your building, card tables, slot machines, and other property will determine how much it costs to insure them.
• Location: Localized factors such as crime rate, healthcare costs, foot traffic, risk of natural disasters, and property values can impact your insurance premiums.
• Risk management solutions: Insurance companies may offer lower rates to casinos that have video surveillance, sprinkler systems, and other loss control measures, including cybersecurity controls.
• Policy limits and deductibles: You can save money on insurance by opting for lower limits or higher deductibles on your policies, but make sure it's sufficient to cover a potential claim.
• Claims history: A gambling venue that has filed an insurance claim in the past will cost more to insure than one with a clean claims history.

Most areas have strict license and permit requirements for casinos and similar venues, but the specifics vary widely depending on your location.

Here's what you likely need to run your business:

• Business license. Every business owner typically needs a business license to operate legally.
• Casino operator license. States and tribal gaming authorities issue casino licenses which allow the operation of gambling establishments.
• Health permit. If your casino sells food or drinks, then you'll need a health permit for your business and a food handlers card for your employees.
• Liquor license. Any business that sells or serves alcohol needs a liquor license and should carry liquor liability insurance, especially in states with dram shop laws.
• Other licenses and permits. You may need permits for key employees, a cardroom license, or other specific licenses and permits depending on your business operations and local regulations.

Because it's a complex and highly regulated industry, you may need to consult an attorney in your jurisdiction to make sure you're in compliance, and also consult an insurance agent to make sure you're adequately insured.

Casinos and similar businesses typically need insurance to operate legally, but the specifics depend on your location and other factors. Additionally, the terms gaming and gambling have different meanings depending on your location and these activities are regulated differently in each state.

Here are the policies you may need to comply with common insurance requirements:

• General liability insurance covers accidental bodily injuries and property damage at your casino. You might need proof of liability insurance to get a casino license, sign a commercial lease, or qualify for a business loan. Landlords and others may ask to be included in your policy as an additional insured.
• Workers' compensation insurance is required in New York, California, and most other states as soon as you hire your first employee. It pays for medical treatment if a worker is injured on the job and provides them with disability benefits while they're recovering.
• Commercial auto insurance covers accidents involving business vehicles. Almost every state requires this coverage for vehicles owned by a business. 

Even when it's not required, it's important to carry insurance to protect against unexpected accidents and lawsuits that could bankrupt your business.

The fast, high-value transactions at a casino increase the risk of theft and fraud. Fortunately, you can purchase commercial crime insurance, which is an affordable option for protecting against these risks.

• First-party crime insurance pays for direct financial losses when your business is the victim of a criminal act, including crimes committed by dishonest employees. It reimburses you directly for stolen money or other property.
• Third-party crime insurance pays for legal costs and provides financial reimbursement if an employee steals from a customer or commits fraud that harms someone other than your business. It's sometimes called a business service bond.

These types of coverage are also referred to as fidelity bonds. State gaming commissions and other regulatory bodies often require them for casinos and businesses with employee benefit plans.

Owners of casinos and other gaming facilities often invest in the following insurance products to protect against unexpected out-of-pocket costs:

• Commercial property insurance covers burglaries, fires, storms, and similar incidents that cause property damage or losses.
• Business interruption insurance helps your casino recover financially from a forced closure due to a burst pipe or other covered property claim. It's also called business income insurance.
• Product liability insurance covers legal costs if a customer is harmed by a product sold at your casino.
• Equipment breakdown insurance protects against financial losses caused by the sudden failure of a point of sale (POS) device, HVAC system, or casino game machine.
• Employment practices liability insurance (EPLI) pays for legal fees related to violations of employee rights, such as unfair hiring practices or wrongful termination.
• Directors and officers (D&O) insurance protects your board members and officers from lawsuits related to the decisions they make on behalf of your casino. You can bundle it with other types of management liability insurance, such as EPLI.
• Hired and non-owned auto (HNOA) insurance covers auto accidents involving a personal, rented, or leased vehicle used for business purposes.
• Commercial umbrella insurance, similar to excess liability insurance, provides additional coverage when the limit is reached on another liability policy, such as general liability insurance.