What Kind of Insurance Does an Escape Room Need?

Since the first escape room appeared in the U.S. in 2012, in-person puzzle games have exploded across the country. By 2021, there were more than 2,800 escape rooms across the country. They’re popular destinations for birthday parties, corporate events, and weekend adventures—any time a group of people wants to get together for some entertaining group problem-solving.

Putting together a winning escape room takes time, but it’s worth the effort. You’re creating a space where people can have fun and socialize.

However, your business needs more than a great theme and convincing scenery. Insurance helps protect the business, its assets, and your investment. As you put together your business plan, consider the kind of insurance an escape room needs, starting with the two most important types of business insurance.

Commercial General Liability Insurance

Guests in an escape room often climb over or crawl under props as they search the room for clues to the puzzle. Although this is great fun for your customers, it also presents an opportunity for someone to get hurt. A prop can fall on a customer. Someone can slip and fall.

An employee can forget to get a waiver signed. An injured customer can do more than lower your online rating. If the customer decides to sue for damages, you risk losing more.

That’s when commercial general liability insurance steps in. This policy covers bodily injury and property damage, and it includes medical payments, legal defense, and judgment. Even if you operate in a state that doesn’t require this type of commercial insurance, it’s risky to not have this type of protection.

Commercial Property Insurance

It takes a considerable number of props, tools, and costumes to create an immersive experience for customers, and the most successful escape room enterprises offer more than one game. For this reason, escape rooms have many physical assets in the rooms and in storage closets or separate buildings. These assets are often worth thousands—or tens of thousands—of dollars.

Commercial property insurance protects you if a fire or natural disaster damages or destroys them. When the worst happens, you have the peace of mind that you can replace these items and resume operations.

Additional Insurance Coverages

Liability and property insurance are just the beginning. Escape rooms can also benefit from the protection additional types of policies provide.

Commercial Auto

Commercial auto coverage includes protection for company-owned, non-owned, and hired vehicles. That includes cars, trucks, and vans used to transport escape room guests or to move equipment from the storage facility to the escape room building.

Cyber Liability

The internet makes it easy to promote the escape room, schedule appointments, and accept payments. Of course, it also increases the odds of becoming a victim of a cyberattack. Cyber liability insurance can help pay for costs related to notifying customers of the data breach, defending claims that result from the breach and losses due to identity theft.

Directors & Officers Coverage

When someone sues the business, the people in charge can be named in the lawsuit. Directors & Officers insurance is a type of coverage that protects the personal assets of the business’s directors and officers as well as their spouses. It’s available for private and public companies of all sizes.

Employment Practices Liability

If you have employees, consider purchasing employment practices liability insurance. This offers protection when employees claim they’re the victim of discrimination, wrongful termination, sexual harassment, and more. It also covers claims of breach of employment and mismanagement of employee benefits.

Equipment Coverage

Escape rooms typically have a number of computers, switches, electronic locks, and lighting that work together to create the magic of the experience. Although you’ll inspect and maintain the technology, an equipment coverage policy offers an extra layer of protection to pay for the cost of replacing or repairing malfunctioning equipment.

Prize Indemnity Insurance

If you offer promotional prizes to drum up business — perhaps an award for guests who can beat the escape room in a record time, check out prize indemnity insurance. This type of coverage pays out the grand prize, so you don’t have to take it from the till. With this insurance in place, you can offer greater rewards without the risk.

Worker’s Compensation

Depending on the state where you operate and the number of employees you have, you may have to have worker’s compensation. This policy covers the treatment of work-related accidents and is separate from medical and health insurance.

The Coverage You Need at a Price You Want

Adequate insurance protection gives you more than peace of mind. It provides you the freedom to focus on running your escape room. That’s why it pays to work with the right partner who can help you find affordable coverage that meets the needs of your business.

The team at Entertainment Sports Promotion understands the nature of your work and knows the insurance market, so they can find you the coverage you need to protect your interests. Complete the request form to get a quote for escape room insurance or contact us to discuss coverage options.

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