About General Liability Insurance
All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).
Some of the risks CGL insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.
Learn more about the risks covered by general liability insurance.
COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A CORN MAZE BUSINESS
Example 1: A group of teenaged customers is making their way into the back or your trailer as they prepare to travel on a haunted corn maze attraction. One of the teens isn’t paying attention and slips on the ramp, cutting her chin on the metal. She requires immediate medical attention and demands that your business pays for her hospital stay. Your general liability policy will likely cover the treatment and any other associated costs.
Example 2: At the end of the season, you offer a significant discount to local feedlots for the last of the corn stalks. As a customer begins to load his truck, he trips over a stray extension cord and breaks his wrist in the fall. He is angry and threatens to sue you for both medical costs and pain and suffering. General liability insurance will help to cover your legal fees and the costs of any settlement that may be awarded.
Example 3: A competing corn maze in your county has filed a lawsuit against you, claiming that you libeled their business in your latest television commercial. You don’t believe that your ad was offensive in any way but want to seek out an excellent legal defense team as soon as possible. Your general liability policy will likely pay for your legal costs, including the cost of a settlement if necessary.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.
Cost Of General Liability Insurance
On average, corn mazes in America spend between $300 - $800 per year for $1 million in general liability coverage.
Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Other Types Of Coverage Corn Mazes Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all corn mazes should obtain:
Workers’ Compensation Insurance
Workers’ compensation coverage is likely required in your state for any company with part-time and/or full-time employees. Your employees face a unique set of risks when they come to work each day. If they are injured or become ill as a result of a job-related accident, workers’ compensation insurance will cover their medical treatment and any lost wages until they can return to work.
Commercial Auto Insurance
Any vehicles that you use to complete business-related duties, including personal cars, must be covered under a commercial auto insurance policy. This essential coverage works to protect your business and employees in the event of a traffic accident. Commercial auto insurance will not only cover the cost of repairs but will pay for any required medical treatment for your employee and any involved third-parties if your employee is found to be at fault.
Types Of Coverage Some Corn Mazes May Need
In addition to the policies outlined above, there are a few other types of coverage your corn maze business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Commercial Property Insurance
Your corn maze requires a variety of specialized business equipment and supplies to keep operations running smoothly year-round. If any of this equipment is damaged or lost in a fire, it can be difficult to replace it out-of-pocket. Commercial property insurance is designed to cover the loss of your equipment and supplies in the event of a disaster so that you can keep your doors open and protect your bottom line.
Commercial Umbrella Insurance
Even though you’ve invested in a comprehensive general liability policy, there may come a time when a lawsuit exhausts your primary coverage limits. In this case, commercial umbrella insurance can step in to go above those primary limits and pay for the remaining damages so that you don’t have to.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.
With this in mind, here are three things you can do to better protect your business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
Steps After Getting Business Insurance
Depending on where you are in your business building process, here are some other actions you may need to take before getting started:
- If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
- After finding the perfect name, get a logo with our Logo Generator.
- Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.
Frequently Asked Questions
What is included in a business owner’s policy?
A typical business owner's policy includes general liability, business interruption, and property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company's needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a business?
You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it's best to be proactive when it comes to protecting your assets. After all, you can't buy insurance to cover a loss that has already occurred.
Will insurance protect my business from everything?
Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.