Last Updated: February 21, 2024, 3:31 pm by TRUiC Team

Go-Kart Business Insurance

Getting insurance for your go-kart business is essential.

Go-kart businesses need to be protected against things like claims of breaches of contract, property damage, and personal injury.

For example, a customer loses control of a go-kart while on your track, causing damage to the kart (and your track) as well as causing them injury.

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 Go-Kart Business

General liability insurance is — generally speaking — one of the most important insurance policies for go-kart businesses. 

Some of the risks general liability insurance covers are:

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

Alongside general liability, your go-kart business may also be interested in investing in some of the following policies:

  • Workers’ compensation insurance
  • Commercial auto insurance
  • Business interruption insurance
  • Commercial umbrella insurance

You will also need to find the right business insurer for your go-kart business. There are a number of great options available, but we recommend small businesses opt for an online insurer. 

This is because online insurances (i.e., Tivly and Next) are more affordable, convenient, and quick to use than their traditional counterparts. Furthermore, online insurers are able to match the quality of traditional insurers by taking advantage of AI.

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Cost of General Liability Insurance

The average go-kart company in America spends between $450-$1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a go-kart 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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Find the Best Rate

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

Common Situations That General Liability Insurance May Cover for a Go-Kart Business

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Example 1: As one race finishes, the next group of drivers is queuing up to take their places. One of the drivers steps out onto the track early because the gate wasn’t properly locked, and they are hit by a go-kart. General liability insurance will likely pay for medical bills associated with the accident and any other damages awarded as the result of a lawsuit.

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Example 2:  After finishing repairing your go-karts, an employee lowers the vehicle out of the repair shop bay and accidentally smashes into a customer’s car, ripping off the front bumper and smashing a headlight. General liability insurance will likely pay for the damages to your customer's car and any repairs to the damaged lift.

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Example 3:  As your team is cleaning the lobby after a party, one of the guests returns for a forgotten bag and trips over an extension cord. They break their wrist in the fall and sue you for damages. General liability coverage will likely pay for any damages awarded.

Other Types of Coverage Go-Kart 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:

Workers’ Compensation Insurance

Operating a go-kart track can be very risky, and if an employee is injured while working, workers’ compensation coverage will pay for their medical bills. This important insurance coverage is required in many states if you have full-time or part-time employees.

Commercial Auto Insurance

Any vehicles that are used for business purposes must be covered under a commercial auto insurance policy. If another person is injured or you damage someone else’s property in your company car, your personal car insurance policy will not cover any of the associated damages.

Business Interruption Insurance

It is common for businesses to have to close down operations after a fire, flood, or acts of theft and vandalism. If this happens to you, business interruption insurance can help to cover the loss of revenue during this time and ensure that you can reopen for business as soon as possible.

Commercial Umbrella Liability Insurance

If there is an accident at your go-karts park that results in a big lawsuit, your primary insurance policies can easily be exhausted. In these types of situations, commercial umbrella liability insurance can step in to go above and beyond your primary coverage limits to protect your business and keep things up and running.

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 go-kart 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.

Go-Kart 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. In many cases, it will be a legal prerequisite for your go-kart business to own at least some form of business insurance (e.g., commercial auto or workers’ compensation).

However, even where not mandated by law, it is still vital that you acquire adequate business insurance for your go-kart business in order to shield it from its many inherent risks.

Not necessarily. Certain exceptions may be written directly into your go-kart 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.