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.
Learn more about the risks covered by general liability insurance.
COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A WHIRLYBALL ARENA BUSINESS
Example 1: During a Whirlyball game, a vehicle malfunctions and the customer falls out. General liability insurance would cover any medical costs if it was found that the malfunction caused the fall and resulting injuries.
Example 2: When moving a large box of stock through the parking lot, a staff member damages a customer’s vehicle. General liability insurance would cover the costs of repairing the customer’s vehicle.
Example 3: Your Whirlyball arena offers food and drinks to customers. One of your customers claims they became ill after eating your food. General liability insurance would cover the costs associated with fighting or settling the food poisoning claim.
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.
On average, Whirlyball arenas in America spend between $400 - $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.
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 Whirlyball arenas should obtain:
Commercial Property Insurance
If you own the space used for the arena, you’ll need commercial property insurance to protect it from inclement weather, theft, and fires. Commercial property insurance covers the grounds (e.g., flowerbeds, lawn), equipment (e.g., vehicles, administrative tools) and the physical structure.
Business Interruption Insurance
If your retail space needs to close for an extended period of time, business interruption insurance continues to provide a business owner with income based on past sales. If your building was badly damaged by a storm, you can continue receiving cash flow even if repairs take several weeks.
Workers’ Compensation Insurance
Workers’ compensation insurance covers medical costs associated with employee injuries that occur while on the job. A Whirlyball Arena can be a dangerous place to work. Workers’ compensation insurance covers employees for both sudden accidents and chronic injuries that may develop after years of being on the job.
Professional Liability Insurance
Professional liability insurance is available in case an employee makes a mistake when advising customers on how to use the equipment and play the game. For example, if they provide poor or inaccurate instruction that results in injury, professional liability insurance will cover any resulting damages.
Commercial Auto Insurance
If you use your vehicle to transport supplies or run professional errands, commercial auto insurance is available to cover any damage to the vehicle or other business-related items being transported. It will also cover standard property damage and bodily injury caused by an accident if you or one of your employees is found liable.
In addition to the policies outlined above, there are a few other types of coverage your Whirlyball arena business 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 Umbrella Liability Insurance
Your general liability insurance policy will protect your business in many situations, but if you face a major lawsuit, it is possible for the limits of your policy to be exceeded. If your general liability insurance runs out, you are left to pay the remaining damages out of pocket. However, if you have a commercial umbrella policy, it will cover excess damages when your general liability policy’s limits are exceeded.
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.
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.