Any businesses needs to be protected, especially when it's as wild and has as much going on as a Vegas casino. There are risks of all kinds that need protecting, and here's what an independent insurance agent would keep in mind when trying to find the right coverage for a Vegas casino.
How Do You Insure a Vegas Casino?
Las Vegas is often referred to as the city that never sleeps. It has been rumored that the casinos pump fresh oxygen into the air to keep casino goers awake and refreshed. This, of course, would have added benefit to the casino because the more awake you are, the more money you'll be tempted to spend.
There are 15,000 miles of neon tubing on the Las Vegas strip — that's a lot of lights. Vegas has close to 200,000 slot machines among the casinos. These casino hotels are elaborate. The bigger, the better, is the Vegas motto, and it shows. The MGM Grand Casino has a 90,000-pound bronze lion that would take a pretty penny to replace.
That's not small change, and if you think of the insurance it will take to cover these casinos adequately, the numbers are catastrophic.
Having insurance on these vast and decorative moneymakers isn't impossible, but it's also not something a local independent insurance agent would be a part of insuring. No, these businesses often self-insure for a significant portion of their coverage, and have a policy that will pick up anything that exceeds it. But if your agent were to have an insurance policy on one of these, they would probably be advising about the following coverages:
- General liability: This is for all guest slip-and-fall incidents, or sudden illnesses due to food poisoning from your casino buffet.
- Commercial property: Property coverage is essential and will provide insurance for your building's replacement or repair. With that many guests in the casino at one time, there is a good chance of a fire.
- Business personal property: This property coverage will provide insurance for the casino's items that are not permanently attached to the building, such as slot machines, roulette tables, poker chips, furniture, and the like.
- Swimming pools: If you are a Vegas casino, you have a pool. After all, it's in the middle of the desert and it's hot. Plus, vacationers like to swim and tan in the Vegas heat. You'll need to make sure there are safety parameters around your casino pools and hot tubs. They need to have fencing, lifeguards, and signs posted for rules of operation.
- Casino buffets and restaurants: Your casino has a restaurant, which will need coverage just like any other restaurant. Proper inspections of equipment and stoves is a requirement.
- Casino employees: Every casino needs a staff to run it. If you don't have employees, you won't have a casino that can operate. Workers' compensation insurance will come in handy for your employees who get injured or ill while on the job.
Essential Property Coverage for a Vegas Casino
Vegas casinos have a lot of property to insure. The largest casino as of 2019 is the Mandalay Bay Resort and Casino, at a massive 160,334 square feet. Insurance companies use what's called a replacement cost estimator to determine a commercial property's makeup so they can adequately replace it to like and kind in quality in the event of a loss.
Replacement cost estimators take into account the exterior, interior, and building materials used so they can get a proper assessment of costs. The Wynn Las Vegas cost an estimated $2.7 billion to build; you can imagine the replacement cost.
Your independent insurance agent can make sure your commercial properties are insured accurately and sufficiently the first time. You may not own a Vegas casino, but your replacement cost still needs to be right.
Necessary Liability Coverage for a Vegas Casino
If there was ever a business that needed liability insurance, a Vegas casino would be it. An estimated 56 million people visit Nevada each year to hit up the infamous strip. Any casino will get a portion of that tourism and its revenue.
With more people come more potential problems. The number of slips and falls, injuries, and illnesses that can and will occur is high. Casino owners need some of the highest and best liability insurance there is, because there are sure to be some that take advantage of the owner's deep pockets.
Workers' Compensation Insurance for a Vegas Casino
Workers' compensation insurance is a must for any business owner, but especially one that has a large number of employees. Employees can be your best asset, running your casino smoothly and keeping it active. An employee can also be a significant liability if you're not adequately insured.
Say an employee slips on a freshly waxed marble floor that adorns your luxurious Vegas casino. They have broken a hip and are now reaching out for you to pay the medical bills and for their pain and suffering. Good thing you have security cameras covering every square inch of your casino. But your workers' compensation insurance will still have to pay up.
Vegas Casino Entertainment and Shows
Insuring your casino is one thing, but the Vegas shows that help generate revenue for your casino are on an altogether different scale. Your casino may have the Blue Man Group or Celine Dion as your opening act. This is wonderful, but with big shows comes big responsibility.
You'll need a policy endorsement that is okay with live entertainment, large crowds in a theater, and everything that makes up the surroundings, such as lighting, sound systems, staging, props, and more. Not to mention a liability policy that has to be in the mega millions and probably billions to account for the issues that could arise.
If your business is in the entertainment industry, you'll have some of the same exposures, so make sure you contact your independent insurance agent for details.
Liquor Liability for the Casino Floor
It's long been known that Vegas casinos will supply free alcoholic beverages as long as you're playing on their casino floor. It's their way of enticing you to keep gambling. The more you have to drink, the more you have to lose.
If you're rolling the dice on the casino's craps table and have one too many White Russians, your cognitive functions may not be operating at their fullest. Now, if you get into a brawl with another patron and end up taking a life over some poker chips, the casino will be on the hook, too. Because they are the ones that served you too much alcohol, there are more parties that can be sued.
If a Vegas Casino Has to Close Its Doors
If a Vegas casino has to close its doors because of a fire that burned the building to the ground, then there is coverage for that.
A business has loss of income coverage that will help pay for expenses like mortgages, employee paychecks, and any regular operating overhead while the company is in limbo.
Loss of income typically has a time limit of two years, but a Vegas casino may have a more extended period because it's so large. Your agent will be able to set your business up with loss of income, and you're going to want it.
Here's How an Independent Insurance Agent Can Help
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Candace Jenkins
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