Business insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a board game firm.
This article will discuss the primary insurance coverage for board game firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Board Game Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS THAT A BOARD GAME COMPANY’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: A visitor to your factory trips and falls against a hot plastic moulding machine. They are severely burned and need emergency medical assistance. General liability insurance would most likely cover all of their medical expenses.
Example 2: While loading a consignment to leave the plant, your loading dock ramp fails, crashing into the delivery truck. The collision collapses the tailgate and ruins merchandise worth thousands of dollars. Your general liability coverage will most likely pay for vehicle repairs as well as the cost of the damaged goods.
Example 3: A client is exiting your lobby when they trip on the slippery floor and break their arm. They are enraged and threaten to sue you for monetary damages. You make a claim under general responsibility, which would most likely cover their medical bills as well as your legal fees if a case is filed.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Board game firms in the United States typically pay between $300 and $800 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Board Game Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every board game company should have are as follows:
Insurance for Workers’ Compensation
Workers’ compensation insurance will cover an employee’s medical expenses if they are injured on the job. In addition, if they are unable to return to work, they may be entitled for disability compensation under this programme. Workers’ compensation insurance is required in most states for firms with full-time or part-time employees.
Insurance for Product Liability
If a consumer alleges that one of your items harmed them, they may sue your firm for compensation. Product liability insurance will assist in paying for your legal defence as well as any settlement amounts.
Coverage Options for Some Board Game Companies
In addition to the policies listed above, your board game business may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Property
Making your board games requires the use of specialised equipment, tools, and costly computer systems. If any of these goods are destroyed in an event such as a fire, replacing them on your own might be exceedingly expensive. You may obtain aid paying for the repair or replacement of this precious property with commercial property insurance, allowing you to keep production running.
Umbrella Insurance for Businesses
If the limits of your main insurance policy are surpassed in a large lawsuit, business umbrella insurance will step in to go over those limitations, allowing you to avoid paying for damages out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.