Every summer camp needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best summer camp insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Summer Camp
The most common and comprehensive type of summer camp business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a summer camp isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your summer camp is sued, you could face fees totaling hundreds of thousands of dollars (or more).
Cost of General Liability Insurance
On average, summer camps in America spend between $300 - $800 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a summer camp to other professional industries using the graph below:
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.
Common Situations That General Liability Insurance May Cover for a Summer Camp
Example 1: A visiting parent slips on the pool deck and needs stitches on his forehead. General liability insurance would cover the parent’s trip to the emergency room and any resulting medical bills.
Example 2: On a canoe trip, one of your counselors drops a cooler in a rented canoe and dents the bottom. The canoe company asks you to replace the damaged canoe. A general liability policy would cover the canoe repair or replacement costs.
Example 3: During a small fireworks display on the last night of camp, a falling flame burns a local homeowner as they walk by the property. General liability insurance would cover damage to the homeowner’s clothing and any medical bills resulting from the incident.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Summer Campes 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 summer camps should obtain:
Commercial Property Insurance
If your camp owns the buildings in which it operates, you need commercial property insurance to cover the buildings and business property stored there in the event of a fire, burglary, or natural disaster. Be sure to carefully consider any build-outs and renovations to your buildings—as well as replacement costs for your business property—when securing coverage.
You can typically purchase this coverage as part of a business owner’s policy (BOP).
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. While your state may allow exemptions for business owners, consider including yourself in your workers’ compensation policy if you engage in the daily operation of the business.
You can typically purchase workers’ compensation insurance as a standalone policy.
In addition to the policies outlined above, there are a few other types of coverage your summer camp 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.
Commercial Auto Insurance
If your camp owns a van to transport campers or to conduct other business, state law requires you to carry at least state-mandated minimum levels of commercial auto insurance. Since the minimum requirement only offers basic protection, consider purchasing limits greater than those required by state law.
You can typically purchase commercial auto insurance as part of a business owners’ policy (BOP).
Commercial Umbrella Insurance
Summer camps often face sizable risks and, while your general liability 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 summer camp:
- 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.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Summer Camp Business Insurance FAQ
Can I buy business insurance online for my summer camp?
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.
What is included in a business owner’s policy?
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.
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 summer camp?
You should invest in business insurance 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 summer camp from everything?
Not necessarily. Certain exceptions may be written directly into your summer camp insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.