Sensory Deprivation Business Insurance
Getting insurance for your sensory deprivation business is essential.
This is because owners of sensory deprivation businesses need to protect themselves against a variety of different risks, such as negligence claims, bodily injuries, and contract violations.
You will also want to protect your equipment against potential damage and/or theft.
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 Sensory Deprivation Business
General liability insurance is — generally speaking — one of the most important insurance policies for sensory deprivation businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, you will likely benefit from purchasing additional coverage. This is because a general liability policy will not cover you from a variety of different risks, such as those that relate to:
- Damaged or broken sensory equipment: Will need commercial property insurance coverage.
- Employee injuries or other disputes: Will need workers’ compensation insurance coverage.
- Professional negligence: Will need errors and omissions insurance coverage.
You will also need to find the right insurer for your business. There are several great options, but we recommend going with an online insurer as a small business owner. This is because it is the most affordable option and can help you stay as price-efficient as possible when starting out.
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Cost of General Liability Insurance
The average sensory deprivation business in America spends between $350-$750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a sensory deprivation 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.
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Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Sensory Deprivation Business
Example 1: A customer is in the middle of a session when she begins to have a panic attack. Your employee fails to notice her distress, and she remains in the tank longer than she wants. Her mental and emotional distress are significant and she blames your business for what happened. She takes legal action, suing your business for damages. Your general liability insurance policy will pay for your legal fees and also pay for the cost of a settlement if the case is settled out of court.
Example 2: A visitor to your facility is walking with you on a tour when he fails to notice a spill on the floor and slips. He falls, catching himself and breaking his wrist in the process. He asks that your business pay for his medical treatment. Your general liability insurance policy will likely cover the cost of treating his injuries.
Example 3: A competing sensory deprivation business determines that you have libeled them during your last advertising campaign and files a lawsuit against you. Because you have a general liability insurance policy, your legal defense fees will be paid for by your insurer. Your policy will also pay for the cost of payouts or settlements if you settle the case out of court.
Other Types of Coverage Sensory Deprivation 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
It took a considerable investment on your part to obtain all the equipment and supplies necessary to operate your sensory deprivation business. In the event that your commercial property was damaged or destroyed by, for example, a fire, then it would likely be a financial struggle to obtain new equipment and get your business going again. With commercial property insurance, you can look to your insurer for assistance with the replacement of your equipment when it is damaged by a covered event.
Workers’ Compensation Insurance
The laws in your state most likely require your business to carry workers’ compensation insurance if you have employees. There are several benefits that come with a workers’ comp policy beyond meeting your legal requirements. Should one of your employees be injured performing a job-related task, your workers’ comp policy would pay for his or her medical treatment. The policy would also help pay for wages the employee lost while being unable to work.
Commercial Umbrella Insurance
It is possible to find yourself in a situation where your general liability insurance policy limits are exceeded, such as if you lose a major lawsuit and are required to pay damages. When the limits of your general liability insurance policy are exceeded, you are left having to cover whatever damages remain—unless you have commercial umbrella insurance. With an umbrella policy, you can rely on your extra coverage to kick in once the general liability policy limits are exceeded.
Data Breach Insurance
Also known as cyber attack insurance, data breach insurance protects your business from damages caused by a cyber attack. For example, if a cybercriminal hacks into your system and steals the payment information of your customers, your data breach insurance would help cover the cost of damages. General liability insurance will not cover this loss, so it is important to have data breach insurance if you think your business faces such a risk.
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 sensory deprivation 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.
Sensory Deprivation 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. We recommend getting the following business insurance coverage before you start your sensory deprivation business:
- General liability insurance
- Commercial property insurance
- Workers’ compensation insurance (if applicable)
This is because you will want to ensure that you are covered before any liability arises.
Not necessarily. Certain exceptions may be written directly into your sensory deprivation 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.