Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a comedy club.
This article will discuss the primary insurance coverage for comedy clubs, general liability insurance, as well as additional products that are appropriate for this industry.
Comedy Clubs 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 Comedy Club’s General Liability Insurance May Cover
Example 1: As an employee gets a mop to wipe up a spilt drink from a client, another customer stumbles on the wet floor. The wounded customer’s medical expenditures would be covered by general liability insurance.
Example 2: As a comedian is looking for volunteers for a skit, an ecstatic client stands on a table to attract the comic’s attention and falls down when the table breaks. In the case of a lawsuit, general liability insurance would pay the injured customer’s medical expenditures as well as your legal fees.
Example 3: A worker takes a wet floor mat from your foyer and goes to a back room to look for a dry replacement. While the entrance floor is bare, a client slips and falls on the slippery tile. The customer’s medical expenditures would be covered by general liability insurance.
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
The typical American comedy club pays between $500 and $1,100 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 Comedy Clubs
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all comedy clubs should have are as follows:
Insurance for Commercial Property
If you own the building where you do business, you are liable for any business-related property that is held there in the case of a fire, burglary, or natural catastrophe. After an accident, commercial property insurance would cover the expense of repairing or replacing your furnishings and company equipment, allowing you to recover fast.
Insurance for Liquor Liability
If your club serves alcohol, this coverage protects you in the event that an inebriated client injures someone or destroys property after leaving your club and sues your organisation.
Coverage Options for Some Comedy Clubs
In addition to the insurance listed above, your comedy club 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 Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they require time to recuperate, but also any disability benefits resulting from a workplace injury.
Insurance for Assault and Battery
Assault and battery coverage protects you in the event of lawsuits related to fights between your customers. It would cover your legal fees and any damages awarded in a settlement.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy 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.