Rage Room Business Insurance
Getting rage room business insurance is essential.
Rage room businesses need to be protected against claims involving things like employee or customer injuries, as well as negligence disputes.
These can arise as a result of destroying products that contain toxic chemicals, broken glass leading to accidental injuries, or an employee failing to provide a customer with adequate protective gear.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Rage Room
General liability insurance is — generally speaking — the most important insurance policies for rage room businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical bills
- Legal defense and judgment
- Personal and advertising injury
Because of the risky nature of a rage room business, you should consider the following additional coverages:
- Product Liability Insurance: This can provide protection if a customer claims that the equipment you provided (such as safety gear or items to be smashed) was faulty or caused injury.
- Umbrella Liability Insurance: Given the unique risks involved in a rage room business, additional liability coverage beyond what is offered in a standard general liability policy could be very valuable.
- Participant Accident Insurance: This covers medical expenses resulting from an accident during activities in the rage room. This type of policy is common in businesses involving potentially risky activities.
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Rage Room Business Insurance Cost
The average rage room 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 rage room 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.
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Common Situations That General Liability Insurance May Cover for a Rage Room
Example 1: Despite using the proper safety gear, a customer is injured by flying debris during their session. General liability insurance would likely cover any medical care that the injury requires.
Example 2: An employee fails to thoroughly clean a room after a session, and the next customer cuts their arm on some glass. The cut is deep and requires stitches. General liability insurance would cover injuries that occurred if the customer filed a lawsuit or claim.
Example 3: A customer trips over an object during a session and fractures their arm in the fall. While your rage room might be ultimately exonerated because the customer assumed certain risks by participating, the customers could still file a suit that requires expensive legal representation. General liability insurance would cover the legal fees (and any settlement).
Other Types of Coverage Rage Rooms 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 your rage room business owns the space that it uses, you’ll likely want commercial property insurance for the building. Property insurance policies normally insure commercial buildings and the equipment kept inside them.
When selecting property insurance limits, make sure your rage room’s equipment is properly covered. There’s little reason to consider items that get destroyed since they often have little or no fair-market value. You will, however, want to consider the value of computers, permanent furniture, and safety gear that your business has.
This coverage is widely available through a business owner’s policy (BOP).
Worker’s Compensation Insurance
If your rage room has any employees (full-time or part-time), you are legally required to carry workers’ compensation insurance. This type of coverage will help compensate your employees in the case that they get injured on the job.
Read more about workers' compensation insurance.
Business Interruption Insurance
Natural disasters and other incidents can leave your business unable to open and bring in revenue. Business interruption insurance may provide supplemental revenue during times like these.
If your rage room doesn’t have a cash reserve, you may want business interruption insurance to help with lease, mortgage, and other payments following a covered disaster.
Business interruption insurance is often available through a BOP.
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 rage room:
- 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.
Rage Room 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. Getting business insurance before officially opening your rage room business can be pivotal when it comes to protecting yourself against potential lawsuits (e.g., as a result of employee disputes, customer injuries, etc.).
You may also be legally required to purchase some forms of coverage depending on your state and specificities (e.g., workers’ compensation, commercial auto, etc.).
Not necessarily. Certain exceptions may be written directly into your rage room 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.