Last Updated: February 21, 2024, 1:38 pm by TRUiC Team

Comedy Club Business Insurance

Getting insurance for your comedy club is essential.

Comedy clubs need to be protected against things like claims for personal injuries, contractual breaches, and defamation.

For example, a performer feels their reputation has been damaged by untrue statements made by your club, or a rowdy performance causes injury to a contracted performer.

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 Comedy Club Business

General liability insurance is — generally speaking — one of the most important insurance policies for comedy club businesses.

Some of the risks general liability insurance covers are:

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

Despite how useful general liability is, it will not provide the comprehensive protection comedy clubs need by itself. For this reason, many elect to carry some of the following policies:

  • Commercial property insurance
  • Liquor liability insurance
  • Workers’ compensation insurance
  • Assault and battery insurance
  • Commercial umbrella insurance

There are two primary options when it comes to choosing a provider from which to buy insurance:

  • Traditional brick-and-mortar insurers — This category describes some of the US’s most reputable firms (e.g., The Hartford, Nationwide, and Hiscox), which are all characterized by operating a physical storefront that customers can visit.
  • Online insurers — In comparison, this category describes some newer names in the insurance industry (e.g., Tivly and Next), which are characterized by running an almost completely online operation.

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Cost of General Liability Insurance

The average comedy club in America spends between $500 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a comedy club business 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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Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Comedy Club Business

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Example 1: While an employee grabs a mop to clean up a customer’s spilled drink, another customer slips on the wet floor. General liability insurance would cover the injured customer’s medical bills.

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Example 2: When a comedian seeks volunteers for a skit, an excited customer stands on a table to get the comedian’s attention and falls down as the table breaks. General liability insurance would cover the injured customer’s medical bills as well as your legal fees in the event of a lawsuit.

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Example 3: An employee removes a soaked floor mat in your entryway and heads to a back room to find a dry replacement. While the entry floor is bare, a customer slips on the slick tile and falls. General liability insurance would cover the customer’s medical bills.

Other Types of Coverage Comedy Club Businesses 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

If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire, burglary, or natural disaster. Commercial property insurance would cover the cost of repairing or replacing your furniture and business equipment after an accident so you can recover quickly.

Liquor Liability Insurance

If your club serves alcohol, this coverage protects you in the event an intoxicated customer hurts someone or damages property after leaving your club and the injured party sues your business.

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 benefits stemming from a work-related accident.

Assault and Battery Insurance

Assault and battery coverage protects you in the event of lawsuits related to fights between your customers. It would cover your legal fees and any damages awarded in a settlement.

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 comedy club business:

  • 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.

Comedy Club 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. Before your comedy club launches, it is paramount that it is adequately safeguarded with business insurance. This provides essential protection to your business assets from the financial losses associated with the many risks they could be exposed to.

Furthermore, it can also help your comedy club to comply with legal obligations in instances where it needs to carry certain forms of insurance (e.g., workers’ compensation).

Not necessarily. Certain exceptions may be written directly into your comedy club business 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.