Business Insurance for Scuba Diving Businesses

Business insurance is designed to protect a business owner's financial assets and is an essential investment for a scuba diving 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: 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.

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, scuba diving 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 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 other types of insurance all scuba diving businesses should obtain:

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.

Types Of Coverage Some Scuba Diving Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your scuba diving 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 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 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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