Skydiving Business Insurance
Getting insurance for your skydiving business is pivotal. This is because you will want to protect your business’s assets against a variety of different risks, such as instructor and/or client injuries, professional negligence claims, and property damage.
For example, if one of your instructor’s recklessly makes an error — or if a piece of equipment malfunctions during a dive — your business will likely be required to compensate the parties involved.
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 Skydiving Business
General liability insurance is — generally speaking — one of the most important insurance policies for skydiving 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, most skydiving businesses tend to purchase additional business insurance; this is because a general liability policy will not protect you from all relevant risks.
Additional coverage options that you may want to consider include:
- Commercial umbrella policy: This will kick in if liability that exceeds the cap of your general liability coverage arises.
- Workers’ compensation insurance: Will cover the cost of compensating your employees in the event that they get injured.
- Commercial property insurance: Will cover the cost of repairing or replacing your commercial skydiving equipment (e.g., parachutes, etc.).
- Errors and omissions insurance: Will protect you from damage caused as a result of a negligent act or omission.
In order to purchase your coverage, you will also need to find a reputable business insurer. There are two different types available as of 2024:
- Traditional brick and mortar insurers — Popular examples include Nationwide, CNA, and The Hartford.
- Online insurers — Popular examples include Tivly and Next Insurance.
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Cost of General Liability Insurance
On average, skydiving companies 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 skydiving 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 Skydiving Business
Example 1: One of your clients has just landed after a successful jump. Suddenly a gust of wind catches her parachute and pulls her off her feet, skipping her along the ground for fifty yards. Her arm is broken in the process. She sues your business over her injuries. While your company may be exonerated eventually, since she assumed certain risks when participating, you still need to hire an attorney to protect your business. The general liability insurance you carry would pay for your legal fees.
Example 2: A client slips and falls in the restroom, breaking his wrist. He asks that you pay for his medical treatment. Your general liability insurance would likely cover this cost.
Example 3: One of your competitors has just sent you an email informing you that he is suing your business. He claims that your latest marketing campaign has libeled his business. The general liability insurance policy you have will cover the cost of an attorney and the cost of a settlement if one is required.
Other Types of Coverage Skydiving 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
Your state probably requires your company to carry workers’ compensation insurance if you have employees. The workers’ comp policy you have will pay for medical treatment for employees injured performing job-related duties, as well as cover some of the wages they might lose while recovering.
Professional Liability Insurance
A professional liability insurance policy is designed with your specific business needs in mind. It protects you and your employees from liability. For instance, if a client claims a mistake during a jump caused him or her injury and sues you, your policy would pay for your legal defense costs. It would also pay for the cost of a settlement if you need to settle the case out of court.
Commercial Auto Insurance
If you have a vehicle that you use primarily for business purposes, you need commercial auto insurance. The policy you have for your vehicle will pay for damages to your vehicle and to other vehicles caused by you or your employees while driving. It will also pay for medical treatment for anyone injured in an accident if your company’s vehicle was is determined to be at fault.
Commercial Umbrella Insurance
There is always the possibility that you could find yourself in a situation where your general liability insurance policy limits are exceeded—like if you lose a major lawsuit. If you have a commercial umbrella insurance policy, it will kick in once the limits of your general liability insurance are exceeded. The umbrella policy prevents you from having to pay the remaining 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 skydiving 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.
Skydiving 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. Getting the right business insurance policies before you start operating is pivotal when it comes to ensuring that you do not have to face an expensive lawsuit or other dispute by yourself.
This can cost tens of thousands of dollars and can play a significant role in whether your business will be able to continue operating in the long term.
Not necessarily. Certain exceptions may be written directly into your skydiving 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.