Haunted Attraction Legal Issues
Download as PPTX, PDF
1 like186 views
This document discusses legal issues related to operating haunted attractions, including liability concerns and business structure options. It notes that homeowners insurance typically covers home haunts but may exclude operations that charge admission. Professional attractions should consider forming a business entity like a sole proprietorship, partnership, corporation or LLC to limit liability. The document outlines insurance requirements and how to limit liability through waivers and safety precautions for volunteers and patrons.
More Related Content
Viewers also liked (14)
Similar to Haunted Attraction Legal Issues (20)
Recently uploaded (20)
Haunted Attraction Legal Issues
- 1. Haunted Attraction Law Brett Hays Director Fear Fair Attorney Hays Law Office Association Attorney - Haunted Attraction Association Brett Hays @fearfair fearfair fearfair
- 2. Biography Practicing Attorney since 1994 Director/Founder Fear Fair since 2001 Board Member/Counsel HAA Background in: Personal Injury / Products Liability Criminal Defense Business Law Family Law Practice now is mostly Criminal Defense / Family Law
- 4. Liability Concerns Homeowners Insurance Covers You! Benefits Will provide defense counsel Usually $100,000 coverage Check your policy!! Dangers! If you charge admission lose coverage Taking donations can count as charging Consider a special policy Surprisingly affordable eventhelper.com
- 7. Sole Proprietorship Simplest Form is Sole Proprietorship Pros Easy to start, end Maintain total control All profits flow straight to owner Cons Liability, Liability, Liability Difficult to raise funds Some expenses not deductible Eg your insurance premiums Difficult to add partners, investors
- 8. Partnership Easiest Multiple Owner form is Partnership Pros Relatively Easy to Establish Dont neglect your agreement!! Profits flow straight through Increased talent / resources Cons Liability x2, Liability x3, Liability x4 If one partners leaves or dies, ends Some expenses not deductible Eg your insurance premiums
- 9. General Partnership Divide responsibility and liability per agreement Equal shares assumed Creditors may not care about your agreement
- 10. Limited Partnership Most partners have limited liability To extent of their investment Most partners have limited input More complex and formal than general
- 11. Joint Venture Limited period of time or single project For example, one season If you keep operating IRS will consider you to be a general partnership Have to file that way Have to wind-up and distribute assets that way
- 12. Partnership Agreement How decisions will be made How profits/losses will be divided How disputes will be resolved How future partners may come in How partners can be bought out How business will end
- 13. Corporations Its own entity Can make contracts, be sued Pros Liability Protection!! Survives ownership changes Only liable up to your investment Cons Little more complicated to form Monitored by state/feds paperwork Dividends cannot be deducted, so may be taxed twice
- 14. A Note On Liability Protection is not absolute! Payroll taxes for example You can blow it! Piercing the corporate veil Do not commingle assets
- 15. Subchapter S or C Just a tax election Allows taxes to be treated as partnership or sole proprietorship There are limits Should only pay yourself what it would cost to replace yourself If not IRS can reclassify as wages and you will owe payroll taxes
- 16. Limited Liability Company Liability Protections of a Corporation Tax efficiencies and ease of a partnership Pick any two Limited liability to extent of assets Continuity of life Centralization of management Free transferability of ownership
- 17. LIABILITY ISSUES
- 18. Areas of Liability Employees / Volunteers Patrons Premises Liability Not just haunt season
- 19. Insurance Do you own the building? Do you have volunteers/employees/both? Will you be open only in the fall? Dont neglect to try your local agent? Do you have vehicles for the haunt? Most event insurance specifically excludes volunteers and is only good during operating hours and your general insurance excludes the haunt big dangerous gap you need to fill!
- 20. Insurance Understand your coverage! General Aggregate Per Event Thats all there is, there aint no more Get as much as you can afford Products & Completed Operations, Aggregate Claims from some defect eg props, electrical Personal Injury Aggregate Also covers slander, libel, false arrest
- 21. Insurance Each Occurrence Per incident or occurrence not person injured Damages to Premises Rented Exceptions to exclusions Only if rented for 7 or fewer consecutive days if legally obligated to pay for damage (excludes fire) Separate coverage for fire Must be liable due to tort not by agreement
- 22. Insurance Medical Payments Payable without regard to fault Limit applies to each person Subject to aggregate, occurrence limits Deductible Deductible is per event not aggregate Make sure its not too high
- 23. Limiting Your Liability Waivers Both for volunteers and patrons Better to have them than not Will hold up to an extent Good in general that they were put on notice of risk Have a written policy / get it signed Post your warnings and rules!! Make sure staff understands importance of the rules and make repercussions consistent and swift
- 24. Your Cast and Crew
- 25. Volunteers What can you legally give them Food Only on premises Lodging Maybe at conventions? Scholarships Can include training Mileage 55.5 cents for 2012 Probably can give up to $599 See 29 CFR 553.106(e)
- 26. Independent Contractors Risky Probably cannot get away with it Determined by: Behavioral control When, how, where to do work What tools or equipment to use Training shows want done your way Opportunity for profit or losses
- 27. Thanks for coming! Any Questions? Brett Hays @fearfair fearfair fearfair