1. Know what sort of coverage is needed.

Like any other business, haunted houses need general liability, with typical limits, and $1 million/$2 million aggregate. If the property is actually owned by the operator, they'll need standard property coverage, including contents–a huge, expensive, high-tech investment for most venues. If the property is leased, they'll just need contents coverage—which, depending on the elaborateness of the venue, can run into the hundreds of thousands of dollars, Cossio said. The venue will also need workers' compensation for both employees and volunteers.

For the increasingly popular zombie-hunt events, which are similar to paintball, the venue will need general liability insurance for participants to cover accidental medical coverage in case of injuries, with the same limits as above.

Premiums typically start at a minimum of $1,000 for basic coverage and can go as high as $40,000. Pricing depends on the number of participants and/or gross sales, Cossio said. Marketing for haunted houses starts 5 months before Halloween, set-up on haunted houses begins at least 30 days before doors open, and coverage starts when the policyholder takes possession of the property.

2. Learn how to market this specialty.

Cossio Insurance Agency, which has specialized in haunted attractions since 1999, does most of its specialty marketing online through its 225 live websites—with specialties ranging from bungee jumping to mud runs, paintball and rock climbing walls. Most of their new business comes through referrals, and no two risks are the same, Cossio said. The agency places business nationwide for about 30 haunted house attractions, with most being temporary set-ups. Primary insurers for this coverage include Scottsdale, Philadelphia and Nautilus.

3. Find out about the emerging trends in haunted house attractions.

Although the growth of fixed haunted sites has been slower because of the expense of the building, overall seasonal events have grown about 10 percent per year, Cossio said.

A new wrinkle that reflects the popular fascination with all things zombie is the increasing popularity of “zombie shoots,” Cossio said, which he estimates have grown by about 25 percent over the last several years. Similar in layout to a paintball field, zombie shoots feature costumed, padded actors who jump out at patrons, who then “shoot” them with hand-held Airsoft-type guns—replica firearms that shoot non-metallic pellets–or with guns fixed onto trailers that drive through wooded trails.

One of Cossio's clients, Travis Krause, is introducing an extreme mashup between the zombie shoot and the traditional haunted house with his Adventure Combat Ops events. Krause, whose background is in U.S. military special ops, is using vacant buildings in different cities—starting with Miami in early November–to stage elaborate “post-apocalyptic” zombie shoots using actors from the U.S. Army Rangers, Special Forces, Navy SEALS and Delta Force. Patrons receive several hours of weapons training before embarking on their “missions,” and can upgrade their experience packages with specialized equipment and costuming. Krause eventually plans to expand Adventure Combat Ops to locations in most major U.S. cities.

4. Know what a typical claim looks like–and how to prevent it.

Heart attacks? People dying from fear? Nope. Like most businesses, the most common claims arising from haunted house attractions are your basic slip-and-fall injuries, Cossio said.

And although there can be costly claims involved—such as an asthmatic teen whose parents filed a wrongful death lawsuit after attending a St. Louis attraction–policyholders can mitigate most risk with a few simple precautions.

As with any haunted attraction, Cossio and his clients go through buildings and outdoor staging areas with a contractor to see that they are structurally sound. For outdoors events, underwriting guidelines are standard: lit trails, trip-and-fall prevention and sites must pass fire department inspections. Venues taking patrons through the site on trailers, typically in groups of 25, must have an employee on each vehicle and a tailgate. Because 95 percent of outdoor events are on preexisting paintball fields, the locations are usually in good condition, he said.

To prevent claims, Cossio recommends the following:

• Obtain all required city inspector and/or fire department prior approval
• Make sure any walk-throughs are as “non-aggressive” as possible, ensuring that costumed characters do not make physical contact with patrons
• Avoid using steps or steep inclines and declines
• Maintain appropriate spacing between costumed characters, and spacing of 5 feet to 8 feet between the characters and patrons
• Tape off areas featuring “live” props such as chainsaws
• Avoid anything “extreme,” such as live animals like snakes or rats, open flame or trap doors
• Clearly mark entrances and exits.