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 BOARD GAME CAFE
Example 1: A waiter spills scalding hot coffee on one of the patrons who is playing a game at his table. The spill causes serious burns, and the patron is rushed to the hospital. If liable for damages, general liability insurance would probably help your company pay whatever a court found it to owe or any settlement reached between you and the injured patron.
Example 2: A customer is playing a game and eating the salad he ordered, but he has a serious allergic reaction to one of the ingredients. After receiving medical care, he decides to sue your cafe. If liable for the incident, general liability insurance would probably help to pay for the damages incurred or any settlement agreed upon by you and the injured party.
Example 3: A custodian fails to leave a wet floor sign, and a customer slips, landing on his tailbone. Part of the bone has fractured, and he sues your cafe. If held liable by the court, you could probably rely on general liability insurance to help cover some of the damages owed.
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 board game cafe in America spends between $500-$1,200 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 BOARD GAME CAFES 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 board game cafes should obtain:
Commercial Property Insurance
This is a big one for board game cafes. Not only do they run a little restaurant/bar, but they also operate a board game store on the same premises! Disasters like fire or violent weather can lead to a loss of equipment, supplies, kitchen machinery, and pricey inventory. The board games alone tend to run an average of $40-$50, and some games go for as much as $100. That’s a lot of crucial inventory loss. A serious board game cafe needs a commercial property insurance policy to keep its material assets covered in the event of the aforementioned disasters or similar catastrophes. This policy will cover commercial material goods as well as owned commercial real estate impacted by the incident.
Due to a resurgence over the past decade, the board game industry is alive and stronger than ever. Part of its resurgence into pop culture and its economic viability has to do with the new nature of board game content, which is often extensive, complex, and designed to meet customers’ expectations for innovative gaming experiences.
This means that board game cafes are keeping some very expensive inventory, much of it neatly packaged for quick removal. Should employee dishonesty cost your business thousands in lost inventory or cash, crime insurance provides your business coverage. It can also cover computer fraud losses and the theft of client property.
TYPES OF COVERAGE SOME BOARD GAME CAFES MAY NEED
In addition to the policies outlined above, there are a few other types of coverage your board game cafe 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.
Liquor Liability Insurance
Many board game cafes provide alcohol as part of their versatile business models. Board games are social events, and where there is recreational socializing, there is often alcohol. Gaming and drinking can play well together, but if your business opts to provide alcohol to its patrons, a liquor license is not only important, it’s required by law.
Events that are normally covered by general liability insurance may be covered by this policy instead—as long as alcohol is reasonably determined to be a significant causal factor in the damage. Intoxicated patrons may be acting of their own accord, but your business could be found liable for their destructive behavior anyhow. Keep your board game cafe covered for intoxication incidents out of its control with liquor liability insurance.
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.