Business Insurance for Laser Tag Businesses

Business insurance is designed to protect a business owner's financial assets and is an essential investment for a laser tag business.

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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.


Example 1: A customer is rushing through the course and trips, falling and breaking his arm. He decides to sue your business for damages. While your company may ultimately be exonerated because customers assume a certain amount of risk when playing laser tag, you still need to defend your company by hiring a lawyer. Your general liability insurance will cover the cost of your legal fees.

Example 2: One of your employees forgets to put out a sign when mopping and a customer slips and falls, breaking her wrist. She asks that your business pay for her medical care. Your general liability insurance policy will likely cover this cost.

Example 3: A competitor files a lawsuit against your business, claiming that you libeled their company in your latest marketing campaign. General liability insurance will pay for your legal defense and also cover the cost of a settlement if one is 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, laser tag businesses in America spend between $400 - $1,100 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:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • 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.

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Other Types Of Coverage Laser Tag Businesses 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 laser tag businesses should obtain:

Workers’ Compensation Insurance

If you have employees, you are most likely required by state law to carry workers’ compensation insurance. The policy will pay for medical treatment for employees injured performing job-related duties. It will also help to pay for lost wages while injured employees are unable to work due to work-related injuries.

Commercial Property Insurance

You have invested a lot of money to start and maintain your laser tag business. If you were to lose most or all of your equipment and supplies, like if a fire broke out, then it would be very costly to get new equipment and open your business again. But if you have a commercial property policy, you can file a claim with your insurer and get financial help replacing your commercial property if it is damaged in a covered event.

Types Of Coverage Some Laser Tag Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your laser tag 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 Umbrella Insurance

A commercial umbrella policy is designed to supplement your general liability insurance policy. Every general liability insurance policy has limits. If you are in a situation where the limits of your general liability insurance are exceeded, like if you lose a big lawsuit, then you will have to pay the remaining expense. But with an umbrella policy, once your general liability insurance limits are exceeded, the umbrella policy will kick in and pay the remaining damages.

Commercial Auto Insurance

If you have a vehicle that you use primarily for business, you need to have a commercial auto policy to protect your vehicle, the driver, and others on the road. Your commercial auto policy will pay for damages to your vehicle, damages caused by your vehicle, and medical treatment for injuries sustained during an accident.

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:

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.

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