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.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A ROLLER SKATING BUSINESS

Learn more about the risks covered by general liability insurance.

Example 1:  A customer’s rented skate brakes while skating, causing a fall that results in substantial injuries. Even if your rink isn’t held liable because the customer assumed the risk of falling when they stepped into the rink, the resulting legal fees alone could be expensive. General liability insurance would likely cover the legal fees and any settlement.<\/em><\/p>

Example 2:  While walking through a dimly lit area of the rink in skates, a customer trips and is injured. Again, general liability insurance would probably cover the injuries.<\/em><\/p>

Example 3: Employees neglect to tell a customer that strobe lights are used during a Saturday-night skating party. The customer has epilepsy, and the strobe lights cause a seizure. General liability insurance would likely cover any settlements or compensation due to the injured person if the business is sued.<\/em><\/p>

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

The average Roller Skating Business in America spends 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:

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 Roller Skating 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 roller skating businesses should obtain:

 

Property Insurance

Roller skating businesses that own the building they’re in normally need property insurance for the structure. Policies usually also cover build-outs and equipment stored in the building.

If your skating rink’s structure is built using an especially affordable technique (e.g., as a steel building), property insurance might be more affordable as well. Regardless of the cost for your particular building, your business’s largest asset isn’t one that should be left uncovered.

Property insurance is widely available through business owner’s policies (BOPs).

 

Workers’ Compensation Insurance

Assuming your roller skating business has employees, it will need workers compensation insurance. Most states require businesses that have employees to carry this coverage, which pays for medical care and lost wages resulting from work-related injuries and illnesses.

Working at a roller skating business can be hazardous for even experienced skaters. Rogue customers can run into employees who are actively monitoring the rink, and anyone could trip over stray equipment on the floor. You’ll need to make sure all employees are covered from the first day they begin working.

Workers compensation is usually obtained as a standalone policy.

 

Types Of Coverage Some Roller Skating Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your Roller Skating 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.

 

Business Interruption Insurance

When a disaster strikes, it sometimes takes businesses weeks or months to recover and reopen. If your roller skating rink wouldn’t be able to pay its bills without revenue coming in, business interruption insurance may be an appropriate coverage. This insurance provides supplemental payments to compensate for revenue losses after a covered incident.

Business interruption insurance can often be included as part of a BOP.

 

Liquor Liability Insurance

If your roller skating rink has a bar, getting liquor liability insurance is probably both wise and necessary. Liquor liability can cover a range of alcohol-induced incidents, from falls to fights, and many states require businesses to have a policy in place before they can obtain a liquor license.

Liquor liability insurance is available through package policies and as a standalone coverage.

 

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) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.