Indoor Playground Insurance

Some of the top factors that affect the price of indoor playground insurance include:

• Types of services: Insurers will look at the risks associated with your amenities, such as go-karts, ziplines, an arcade, or a concession stand.
• Annual revenue: Businesses that earn more revenue are associated with costlier claims, which means they pay more for insurance.
• Number of employees: A bigger workforce means an increased risk of accidents and injuries, which raises the cost of general liability, workers' comp, and similar policies.
• Equipment value and condition: The age, condition, and value of your climbing frames, slides, ball pits, and other equipment will determine how much it costs to insure them.
• Playground location: Localized factors such as crime rate, healthcare costs, foot traffic, risk of natural disasters, and property values can impact your insurance premiums.
• Safety guidelines: Insurers may offer lower rates to playgrounds that comply with equipment certification and safety protocols, such as those set forth by the National Recreation and Park Association (NRPA).
• Policy limits and deductibles: You can save money on insurance by opting for lower liability limits or higher deductibles on your policies, but make sure it's sufficient to cover a potential claim.
• Claims history: An indoor playground that has filed an insurance claim in the past will cost more to insure than one with a clean claims history.

The licenses and permits you need for an indoor play area depend on the specific laws and regulations in your state, county, and city.

Here's what you likely need to run your business:

• Business license. Small business owners typically need a business license to operate legally.
• Daycare license. Depending on the services you offer and the regulations in your area, you may need a daycare license for drop-off care of children.
• Health permit. If your playground sells food or drinks, then you likely need a health permit for your business and a food handlers card for your employees.
• Other permits. Local laws and regulations will determine if you need a sales tax permit, certificate of occupancy, signage permit, zoning permit, or other relevant permits.

In addition, state laws and local municipal codes might require compliance with ASTM International standards for soft play areas, Americans with Disabilities Act (ADA) accessibility standards, fire codes, and other safety standards.

Every playground owner should carry liability insurance for financial protection, as playgrounds bring a high risk of injuries to children. The specific requirements vary based on your location and the type of services you provide.

If you have tall climbing walls, trampolines, or other hazardous features, an insurance agent can help make sure your liability policy includes everything it needs, including any endorsements.

Here are the insurance policies you likely need to run your business:

• General liability insurance may be necessary to get licensed as a childcare provider in some states, or you may need to notify customers of your coverage status. Proof of liability insurance can help you comply with playground licensing requirements, sign a commercial lease, or get a business loan.
• Workers' compensation insurance is required in most states as soon as you hire your first employee, either full-time or part-time. It pays for medical treatment if a worker is injured on the job and provides them with disability benefits while they're recovering.
• Commercial auto insurance covers accidents involving business vehicles. Almost every state requires this coverage for vehicles owned by a business.

Parents may ask to see proof of insurance or a license before they'll entrust you with their children. Being licensed, bonded, and insured shows your business is reputable and can help attract new clients, as they know they'll be compensated in the event of an injury or accident.

It's also a good idea to carry participant accident coverage, a type of liability coverage that pays medical bills on a no-fault basis. This coverage along with liability waivers can help your business avoid lawsuits, though you could still be sued for gross negligence.

Yes, you may need additional insurance coverage to host private parties, fundraisers, and other events outside of your typical business operations. General liability insurance covers normal day-to-day activities, but you need special event insurance for the extra liabilities introduced by events.

Many insurance providers offer one-day event insurance or short-term liability insurance that covers third-party accidents at events hosted by your business. For instance, you could buy event insurance for a birthday party, or seasonal insurance for a summer obstacle course tournament.

Keep in mind, you'll always want year-round coverage for your business as well. Businesses that cancel their policies may see increased premiums or have difficulty restarting coverage, as it's a red flag for insurers.

Yes, cyber insurance is crucial for any business that handles personal information, such as email addresses, phone numbers, credit card numbers, and mailing addresses.

Small businesses are often targeted by cybercriminals, as they tend to invest less in cybersecurity. If your booking platform, digital waivers, or customer database is affected by a data breach, you could end up responsible for an incident investigation, customer notification costs, fraud monitoring services, and other expenses.

In short, cyber insurance is worth it for your playground as the costs of a cyber incident could financially devastate a small business like yours.

Owners of indoor playgrounds often invest in the following insurance products as part of a comprehensive risk management plan:

• Commercial property insurance covers burglaries, fires, storms, and similar incidents that cause property damage or losses at your playground.
• Business interruption insurance helps pay for operating expenses and lost income if your business is forced to close due to a burst pipe or other covered property claim. It's also called business income insurance.
• Equipment breakdown insurance protects against financial losses caused by the sudden breakdown of a point of sale (POS) device or play equipment.
• Product liability insurance covers legal costs if a customer is harmed by a product sold at your playground, including food and beverages if you have a snack bar, cafe, or vending machines.
• Employment practices liability insurance (EPLI) pays for legal fees related to violations of employee rights, such as unfair hiring practices or wrongful termination.
• Directors and officers (D&O) insurance protects your board members and officers from lawsuits related to the decisions they make on behalf of your business. You can bundle it with other types of management liability insurance, such as EPLI.
• Crime insurance, such as a fidelity bond, provides financial reimbursement if an employee steals from a customer or your business.
• Hired and non-owned auto (HNOA) insurance covers auto accidents involving a personal, rented, or leased vehicle used for business purposes.
• Commercial umbrella insurance, similar to excess liability insurance, handles legal expenses when the limit is reached on another liability policy, such as general liability or commercial auto insurance.

Our insurance agents can help you find the right coverage options for your unique insurance needs, whether you have a simple play structure or offer a wide range of entertainment.