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.
COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A BATTING CAGE
Example 1: Upon entering the batting cage, a baseball strikes a customer in the back. The resulting injury forces the customer to seek medical attention and he or she is out of work for several weeks. General liability insurance would cover the customer’s medical bills, lost wages, and any required legal representation.
Example 2: Two customers have an argument and throw a bat, hitting a child. The child’s parent names your establishment in a lawsuit. A general liability policy would cover legal fees and any resulting payout.
Example 3: You use a photo from a recent baseball event in your newest marketing pamphlet. Your marketing representative failed to obtain permission from one of the customers to use their photo and that customer is now suing your company. General liability insurance would cover your legal representation fees and any resulting payout, up to the limits of your policy.
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, batting cages 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:
Several factors will determine the price of your policy. These include your:
- 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 batting cages 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 batting cages should obtain:
Commercial Property Insurance
If you own the building in which you run your batting cage business, you will need to purchase commercial property insurance as part of your insurance package. In the event of a covered loss, the policy would cover the building as well as business property you keep on-site.
When considering your coverage amount, it’s important to include the cost of any renovations you’ve made to the building and the replacement cost of all business property and specialized equipment stored there.
You can typically purchase this coverage as part of a business owner’s policy (BOP).
Workers’ Compensation Insurance
Your team is an essential part of your business’ success, so it’s important to cover them should an injury occur on-premises. Workers’ compensation is the state-mandated insurance that covers each employee in the event of a work-related illness or injury. This covers medical bills for an employee’s work-related injuries, offers payment for lost wages, and also provides legal representation should a lawsuit occur.
You must purchase workers’ compensation insurance as a standalone policy.
Types of Coverage Some batting cages May Need
In addition to the policies outlined above, there are a few other types of coverage your batting cage 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.
Product Liability Insurance
If selling baseball equipment is part of your business model, you may also need to purchase product liability insurance. This policy covers situations in which a customer falls ill or is injured by faulty equipment. You can tailor a product liability insurance policy to your business model and the products you sell.
Commercial Umbrella Liability Insurance
A steady flow of customers exposes your business to greater liability risks. Because some claims may exceed the coverage limits of your primary policy, you may want to consider purchasing additional insurance. Commercial umbrella liability insurance increases liability coverage, protecting your business against large covered lawsuits.
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.
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.