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 BOARD GAME COMPANY

Example 1: While touring your factory, a visitor stumbles and falls against a hot plastic molding machine. They sustain serious burns and require immediate medical attention. General liability insurance would likely cover all their related medical costs.

Example 2: While you’re loading up a shipment to go out from the factory, your loading dock ramp malfunctions, slamming into the delivery vehicle. The impact crushes the tailgate and damages thousands of dollars of inventory. Your general liability policy will likely pay for repairs to the vehicle and cover cost of the damaged items.

Example 3: As a customer is leaving your lobby, they accidentally slip on the slick floor and break their arm in the fall. They are angry and threaten to sue you for damages. You file a claim under general liability that will likely cover their medical expenses and pay for your legal fees if there is a lawsuit.

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, 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 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 Board Game Companies 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 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.

Types Of Coverage Some Board Game Companies May Need

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.

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.