Scuba Diving Business Insurance

Getting insurance for your scuba diving business is essential.

This is because you will want to protect your business’s assets from a variety of different risks, including contract violations, customer injuries, and employment-law disputes.

You will also want to protect your business’s scuba diving equipment and other commercial property against potential damage or theft.

We’ll help you find the most personalized and affordable coverage for your unique business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Scuba Diving Business

General liability insurance is — generally speaking — one of the most important insurance policies for scuba diving businesses.

Some of the risks general liability insurance covers are:

Bodily injury
Property damage
Medical payments
Legal defense and judgment
Personal and advertising injury

Even so, your business will likely benefit from purchasing additional coverage. This is because a general liability policy will not protect it from all foreseeable risks:

Employee injuries: Covered via a workers’ compensation insurance policy.
Damaged or stolen scuba equipment: Covered via a commercial property insurance policy.
Lost income as a result of shutting down: Covered via a business income insurance policy.

You will also need to find the right insurance provider for your business; as of 2024, there are two different options to choose from as a small business owner:

Online insurers — Popular examples include Tivly and Next Insurance.
Traditional brick-and-mortar insurers — Popular examples include The Hartford and Nationwide.

In most cases, we recommend going for an online insurer; this is because online insurers have significantly lower operating costs (i.e., no insurance agent, etc.) and can thus offer more affordable coverage.

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Cost of General Liability Insurance

On average, scuba diving businesses in America spend between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a scuba diving business to other professional industries using the graph below.

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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Common Situations That General Liability Insurance May Cover for a Scuba Diving Business

Example 1: Your employee is loading tanks into the truck when he drops one on the foot of a customer. She sues your business for her broken foot. Your general liability insurance policy will pay your legal defense costs, including the cost of hiring an attorney.

Example 2: Another scuba diving business has sued your company for slander. You do not believe that you slandered them, but you need an attorney regardless. The general liability insurance policy you have will pay for your attorney and other legal fees.

Example 3: A customer slips on wet flooring in your restroom and breaks his wrist. He asks that your business pay for his medical bills. Your general liability insurance policy will likely cover his treatment if you file a claim.

Other Types of Coverage Scuba Diving 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 of the most common types of coverage:

Workers’ Compensation Insurance

The employees at your scuba diving shop need the protection that comes with workers’ comp coverage. If they get injured performing job-related duties, they can get medical care through the policy. They can also get help covering their lost wages while they are out of work for their injuries.

Commercial Property Insurance

You invested a lot of money to get the right supplies and equipment to run your scuba diving shop. If you were to lose most or all of that property in an unexpected event like a fire, you might have difficulty getting replacements. But if you have a commercial property policy, you can file a claim to get help buying more property.

Commercial Auto Insurance

If you have a vehicle or vehicles that you use for your scuba business, you need commercial auto coverage. A commercial auto policy will pay for repairs if your vehicle gets damaged in an accident. It will also pay for medical care for injured vehicle occupants. And if you or an employee is at fault for the accident, the policy will protect your company from liability.

Commercial Umbrella Insurance

An umbrella policy will kick in if you exceed the limits of your general liability insurance policy—which is possible if you lose a major lawsuit. The policy will start to pay when the general liability insurance policy stops so that you can avoid needing to pay damages out of pocket.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your scuba diving business:

Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
Set up an 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.
Maintain your corporate veil.

Scuba Diving Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial 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.

"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.

Generally speaking, yes.

This is because you will need to purchase your business insurance before any liability arises, and this could theoretically happen as soon as you begin interacting with customers and/or hiring staff.

You will also want to proactively protect your scuba diving equipment from potential theft or damage.

Not necessarily. Certain exceptions may be written directly into your scuba diving business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.