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.
COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A NINJA WARRIOR GYM
Example 1: If a member of your Ninja Warrior gym gets injured from falling from a piece of equipment while practicing the course, your general liability insurance policy may help cover the accident-related expenses as well as any court costs or legal fees if your gym is sued.
Example 2: Ninja Warrior obstacle courses are often built by hand from schematics and plans obtained from Ninja Warrior. If some pieces of your obstacle course fail or malfunction and a patron gets hurt, your policy may cover their accident-related expenses, and it may help pay certain legal expenses if you are sued for having a faulty piece of equipment.
Example 3: Some Ninja Warrior obstacles contain water instead of foam pads in order to limit injuries suffered by participants that fall. If your water barrier isn’t deep enough and someone falls and gets injured, your general liability insurance may pay the costs to treat the individual’s injuries. If that same individual decides to sue you, your policy may cover settlement amounts, judgments, and lawyer fees.
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
The average Ninja Warrior gym in America spends between $500-$1,100 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:
Several factors will determine the price of your policy. These include your:
- 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 NINJA WARRIOR GYMS 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 Ninja Warrior gyms should obtain:
Commercial Property Insurance
If you own the building and property where your Ninja Warrior gym is located, you’ll want to have commercial property insurance in order to protect against covered losses, like fire, vandalism, and certain types of severe weather. This insurance policy may help replace equipment that was damaged and fund repairs to your building.
Commercial Umbrella Insurance
When an accident or covered event surpasses the limits of your general business liability policy, a commercial umbrella policy can be used to cover the remainder of the amount of the claim.
TYPES OF COVERAGE SOME NINJA WARRIOR GYMS MAY NEED
In addition to the policies outlined above, there are a few other types of coverage your Ninja Warrior gym 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.
Workers' Compensation Insurance
If you employ personal trainers, fitness experts, and other employees at your Ninja Warrior gym, you will need workers’ compensation insurance, which helps pay the medical expenses of an employee that is injured while on the job.
Cyber Liability Insurance
If you are like most gyms, you accept membership payments online and via a payment terminal. Cyber liability insurance helps protect you financially if your customers’ data is hacked.
Excess Liability Insurance
This type of insurance often has extremely high limits, usually in the millions of dollars. This type of policy covers claims amounts that surpass the limits of your regular liability policy and your commercial umbrella policy.
Obstacle Course Insurance
Obstacle course insurance is a specific type of insurance policy that covers injuries and damage to the obstacle course during events. This means that if you plan to host obstacle course events at your Ninja Warrior gym, you will need obstacle course insurance in addition to your other insurance policies.
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.
FREQUENTLY ASKED QUESTIONS
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and 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 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.