Laser Tag Insurance

Some of the top factors that affect the cost of laser tag business insurance include:

• Types of services: A family entertainment center that offers food and beverages or other attractions like go-carts can expect to pay higher premiums.
• 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.
• Property value and condition: The age, condition, and value of your laser tag arena, fog machines, and other property will determine how much it costs to insure them.
• Business location: Localized factors such as crime rates, healthcare costs, foot traffic, risk of natural disasters, and property values can impact your insurance premiums.
• Safety guidelines: Insurers may offer lower rates to laser tag facilities that comply with equipment certification and safety protocols, such as those set forth by LASERWAR.
• Risk management: Insurance companies may offer lower rates to businesses that have video surveillance, sprinkler systems, and other security measures, including cybersecurity controls.
• Policy limits and deductibles: You can save money on insurance by opting for lower limits or higher deductibles on your policies, but make sure it's enough to cover a potential claim.
• Claims history: A laser tag business that has filed an insurance claim in the past will cost more to insure than one with a clean claims history.

Many areas have license and permit requirements for laser tag facilities. Here's what you likely need to run your business:

• Business license. Every business owner typically needs a business license to operate legally.
• Entertainment / amusement license. Some areas mandate a specific entertainment license for laser tag facilities and other entertainment centers.
• Sales tax permit. A sales tax permit allows your business to sell tickets, merchandise, and other tangible goods.
• Health permit. If your laser tag business sells food or drinks, then you'll need a health permit for your business and a food handlers card for your employees.
• Liquor license. Any business that sells or serves alcohol needs a liquor license.

Every state, county, and city has its own regulations. You'll need to make sure your business is in compliance with local zoning ordinances, fire and safety codes, Americans with Disabilities Act (ADA) standards, and more.

Yes, liability insurance is essential for laser tag businesses, even when it's not required by law. Dim lighting, fog, obstacles, and physical activity are a recipe for injuries—and your business could end up responsible for medical bills, legal costs, and other damages from an accident.

Specific insurance requirements depend on municipal and state laws, whether you're renting a commercial space, and other factors.

Here are the policies you may need to comply with common insurance requirements:

• General liability insurance covers accidental bodily injuries and property damage at your laser tag arena. You might need proof of liability insurance to sign a commercial lease, get a business loan, or obtain a license or permit. Landlords and others may ask to be included in your policy as an additional insured.
• Participant accident coverage pays for medical bills if a participant in a tournament or other event is injured, which can help you avoid general liability lawsuits.
• Workers' compensation insurance is required in New York, California, and most other states as soon as you hire your first employee. 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. 

Even when it's not required, it's important to carry insurance to protect against unexpected accidents and lawsuits that could bankrupt your business. You can also reduce the chance of a successful claim against your business by having participants sign liability waivers.

Yes, you may need additional insurance coverage to host private parties, tournaments, and other events outside of your typical business operations. General liability insurance covers normal day-to-day activities, while special event insurance covers 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 retirement party or fundraiser, or seasonal insurance for a summer laser tag 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.

In general, indoor and outdoor laser tag facilities need the same types of coverage. However, outdoor facilities face greater risks and should consider higher limits and additional coverages.

You may need extra coverage to deal with:

• Rough terrain. Trees, rocks, gullies, and other natural features increase the risk of trips and falls. This makes general liability insurance even more important.
• Storms. Wind, hail, and other severe weather can uproot trees, damage structures, and force you to close. Business interruption insurance can pay for daily operating expenses and lost profits until your property is restored and you can reopen. It's also called business income insurance.

Indoor facilities should also carry business interruption coverage, as a fire or burst pipe could cause prolonged closure and significant financial losses.

Laser tag facilities often invest in the following insurance products to protect against unexpected out-of-pocket costs:

• Commercial property insurance covers burglaries, fires, storms, and similar incidents that cause property damage or losses.
• Equipment breakdown insurance protects against financial losses caused by the sudden failure of laser tag equipment or a point of sale (POS) device.
• Product liability insurance covers legal costs if a customer is harmed by a product sold at your facility, including food and drink.
• Liquor liability insurance helps pay for legal fees and damages if a visitor becomes intoxicated at your business and goes on to harm someone or damage their property.
• Employment practices liability insurance (EPLI) pays for legal fees related to violations of employee rights, such as unfair hiring practices or wrongful termination.
• Crime insurance helps pay for losses from employee theft or fraud, such as theft from a cash register.
• Hired and non-owned auto (HNOA) insurance covers auto accidents involving personal, rented, and leased vehicles used for business purposes.
• Commercial umbrella insurance, similar to excess liability insurance, provides additional coverage when the limit is reached on another liability policy, such as general liability insurance.