Last Updated: February 21, 2024, 1:28 pm by TRUiC Team

Challenge Course Business Insurance

Getting insurance for your challenge course is essential.

Challenge courses need to be protected against things like claims of negligence, personal injury, premises liability, and disputes surrounding employment.

For example, a patron is injured due to a course leader’s negligence, or a group of patrons cause damage to an obstacle during one of your courses.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Challenge Course

General liability insurance is — generally speaking — one of the most important insurance policies for challenge courses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Even so, your challenge course might also benefit from other types of policies. Additional coverage policies that can often be important for trucking companies include: 

  • Commercial property insurance
  • Workers’ compensation insurance
  • Commercial auto insurance
  • Commercial umbrella insurance

Typically, there are two distinct types of insurance providers from which your challenge course is able to purchase the insurance it needs:

  • Traditional brick-and-mortar insurers — Such as Nationwide and The Hartford, which use physical premises and an insurance agent to best help their customers find the optimal insurance for them. 
  • Online insurers — Such as Tivly and Next, which use AI technology and a fully online approach to provide customers with tailored assistance. The reduced overheads of this type of insurer enable them to offer quotes that are reliable and low-cost. As such, we recommend them for small businesses.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, challenge courses in America spend between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a challenge course to other professional industries using the graph below.

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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Challenge Course

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Example 1: While touring your challenge course, a visitor accidentally trips over a rope on the ground, breaks a wrist, and decides to sue your company. General liability insurance would pay for your legal defense costs and any required settlement.

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Example 2: Before starting the challenge course, a customer slips on a wet tile in your restroom, sustains a concussion, and asks you to pay for her medical treatment because you didn’t mark the wet floor. General liability insurance would cover the injured customer’s medical care.

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Example 3: Another company sues you for libel. While you’re uncertain why they made this claim, you want to hire an attorney to protect your business. General liability insurance would pay for your legal fees and any required settlement.

Other Types of Coverage Challenge Courses 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 of the most common types of coverage:

Commercial Property Insurance

You made a major investment in building and installing your challenge course equipment. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and grounds as well as the business materials you store there.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business materials you carry in your vehicle.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your challenge course:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an 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.
  • Maintain your corporate veil.

Challenge Course Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

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.

"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.

Yes. Although not a legal requirement in all cases, getting the right challenge course business insurance before your course opens is advisable due to a course’s high-risk nature.

Not only does it ensure that your challenge course is shielded from any of the financial effects of the many potential risks it will face, but it also ensures legal compliance with any requirement to hold coverage before starting.

Not necessarily. Certain exceptions may be written directly into your challenge course insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.