Historic theatres are often pinnacles in the cities where they are located. They bring a sense of vibrancy to a city that has deep roots in a community. Restored theatres often revitalize Main Streets and downtowns across America. Bringing a sense of entertainment, art, architecture and culture, keeping these properties maintained is an important aspect of preserving our past. The insurance that protects these properties has to be unique for a multitude of reasons. The architecture, the decor and other historic elements tied together bring a value that needs to be properly protected by the right insurance coverage. With NTIS, every aspect of your historic property can be protected through our Historic Theatre Insurance Program. Here’s the kinds of coverages that your historic theatre needs:
Insuring the Building
The first thing that you’re going to have to do is insure the building. The types of property coverage that you’re going to need include:
- Replacement Cost Valuation (preferably Historic Replacement Cost valuation)
- Agreed value (which waives the Coinsurance Penalty)
- Special Form Cause of Loss
Whenever possible, theatre owners should insure the building for Historic Replacement Cost Value, which promises to restore a damaged building using the same historic materials, craftsmanship, and architectural features. Considering the materials used to make historic buildings might be difficult to find, it’s imperative to make sure there’s coverage for when you run into this situation.
Moreover, you’ll want to consult with an expert regarding the proper limit of insurance for your building. Historic buildings typically need a higher limits of insurance (as compared to more modern buildings). Under-insuring could be a disaster (especially if Coinsurance is on your policy), so make sure you’re in contact with your insurance agent to get proper coverage in place.
Insuring Basic Business Operations
The next thing that is going to need to be insured is basic business operations. Coverage you’re going to want includes:
- General Liability insurance (including Liquor Liability)
- Directors’ and Officers’ Liability insurance
- Volunteer accident coverage
- Workers’ compensation
You’re going to have people running your business, so you’re going to want every facet of your business operations covered. These are the core historic theatre insurance coverages you’ll need to protect your business.
Insuring Income Generating Activities
If your business stops operating for a certain amount of time, then you’re going to lose income. That’s why purchasing business income coverage is essential for a historic theatre. This type of coverage includes co-insurance, with a number of factors influencing the cost of a policy. If your building also contains space you rent out to other entities, then you might need “loss of rents” coverage. This coverage helps protect you when a property is damaged and can’t be occupied for a certain amount of time until it’s repaired.
Special Insurance Needs
Other insurance needs to consider for your historic theatre include liquor liability insurance, insuring tax credit equity investments and insuring renters. NTIS can assist you with any aspect of the historic theatre insurance process.