Buying escape room insurance is easier said than done, especially for escape room owners.
Not only do escape room owners operate small businesses; they do so in a brand new industry that insurance companies often fail to grasp.
Below are a few escape room insurance tips to help you navigate this potential minefield:
What are my escape room insurance options?
General Liability Insurance
In a nutshell, liability insurance protects a business in the event it gets sued. For example, if a customer gets hurt in your escape room and brings a personal injury lawsuit, liability insurance should cover the legal fees needed to mount a defense, as well as damages awarded to a successful claimant. General Liability policies typically protect you from claims of bodily injury, property damage, and product liability. Some policies also cover advertising injuries, such as libel, slander, invasion of privacy, copyright infringement, and misappropriation.
Commercial Property Insurance
This type of insurance protects against damage to your building and contents from things such as fire, theft and natural disasters. Some policies may even cover the loss of income that results from the property damage.
Equipment Breakdown Insurance: This is a subset of Commercial Property Insurance that covers losses incurred due to mechanical/electrical breakdowns of specific covered equipment. For example, you could ensure the computers used to control your game. The policy covers the cost to repair or replace said equipment. Many policies also provide coverage for loss of business income due to the equipment breakdown.
Business Interruption Insurance: This type of insurance covers the loss of income that a business suffers as a result of a disastrous event (such as a fire or a natural disaster). Specifically, it replaces business income lost during the rebuilding period.
Workers’ Compensation Insurance
The majority of jurisdictions require businesses to have workers’ compensation insurance. It covers medical expenses and lost wages for employees that sustain injuries as a result of their employment. In most jurisdictions, workers give up their right to sue, and instead receive automatic compensation regardless of fault.
Employer’s Liability Insurance: This type of insurance protects employers from financial loss in cases where a worker’s job-related injury/illness is not covered by Workers’ Compensation. It covers compensation costs and legal fees when a worker sues for a job-related injury/illness.