Business Insurance for Board Game Companies

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.

Some of the risks general liability 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 general liability insurance 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.

Check out our review of the Best Small Insurance Companies.

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.

Learn more about the risks covered by general liability insurance.

On average, board game companies in America spend between $300 - $800 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

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.

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 companies should obtain:

Workers’ Compensation Insurance

If an employee is injured on the job workers’ compensation insurance will pay for their medical costs. And if they can’t return to work, they may also be eligible for disability benefits under this policy. Most states require businesses that have full-time or part-time employees to carry workers’ compensation.

Product Liability Insurance

If a customer claims that one of your products caused them harm, they could sue your company for damages. Product liability insurance will help to pay for your legal defense and any payouts that are awarded in a settlement.

In addition to the policies outlined above, there are a few other types of coverage your board game company 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 Property Insurance

Producing your board games requires the use of specialized equipment, tools, and expensive computer systems. If any of these items are damaged in an incident like a fire, it can be extremely costly to replace on your own. With commercial property insurance, you can get help to pay for the repair or replacement of this valuable property and keep production going.

Commercial Umbrella Insurance

If your primary insurance policy’s limits are exceeded in a big lawsuit, commercial umbrella insurance will step in to go above those limits to help you avoid paying for damages out-of-pocket.

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 several 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.
• If your business is an LLC, look into LLC Insurance.

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

• If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
• After finding the perfect name, get a logo with our Logo Generator.
• Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.

What is included in a business owner’s policy?

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.

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 insurance 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.