Rage rooms, commonly known as “Anger Rooms” or “Smash Rooms”, are spaces where people come to smash and destroy objects in a controlled environment. This provides a platform for people to ease their anger, pain, and frustration in a safe and controlled environment.
There has been a significant increase in the popularity of rage rooms, as people feel comfortable letting their feelings out in an expert-controlled environment. The rage room market has a forecasted growth with a CAGR of 7.12% from 2022 to 2023.
Clients get tools like a sledgehammer, baseball bat, etc., along with safety gear, and then are allowed to go to town on everything in the rage room. However, this doesn’t mean that there are no chances of hazards or accidents. That’s why you should have rage room insurance.
Insurance for Rage Rooms – Is It a Good Idea?
Whether you want to start a rage-room business or have already been running one, it is time to get insurance to protect your business, employees, and customers. It might not make sense to get insurance because everything will eventually be smashed. But, many factors, from renting a space to buying objects like glass, ceramics, and plastic to smash, require heavy investment and costly replacements in case of irreversible damage.
Like any other business, rage rooms require similar insurance for legal obligations and protection of the employees, customers, and assets. The reason is that there is a dangerous element of rage in the rage room event. It can lead people to get overwhelmed by their emotions and hurt themselves.
If room owners are unable to get necessary insurance, they can face legal actions, fines, penalties, and refusal from the landlord to rent space. Additionally, the lurking danger of natural and environmental disasters is always there.
Types of Insurance for Rage Rooms
Your rage room business can benefit from the following types of business insurance:
General Liability Insurance
General liability insurance is the most common type of insurance business acquired. Regardless of the business’s nature, certain risks can occur at any time. As a rage room business owner, you should be aware of such threats and acquire general liability insurance.
Although general liability insurance is not a legal requirement, not having it can lead to risks. In case of any accident, courts can fine you thousands of dollars. Having general liability insurance will provide these coverages:
- Advertising injury
- Legal costs
- Property damage
- Bodily injury
- Medical payments
Commercial Property Insurance
If your rage room business involves renting commercial space and keeping assets and equipment there, you need commercial property insurance. This insurance protects your business assets from fire, theft, explosion, and storm hazards. Commercial property insurance covers:
Commercial property insurance does not cover damages from earthquakes and floods. For that, you will need flood insurance. Moreover, you can add custom requirements to your commercial liability insurance to cover additional equipment.
Worker’s Compensation Insurance
Any business with employees must have worker’s compensation insurance, whether full-time or half-time. This insurance covers wages and medical for workers if they get injured during work. Moreover, many states require worker compensation for you to operate.
If you do not have worker compensation insurance and a worker gets injured during work, they can sue you for the injuries, resulting in heavy penalties and fines. Workers’ compensation insurance will protect you from civil lawsuits and penalties. This insurance policy also covers the death benefits of employees who, in unfortunate events, passed away on the job.
One of the growing threats is cyber-attacks. If your rage room uses any electronic assets holding public, financial, and other high-value data, you must have cyber-security insurance. Cyber-attacks can result in significant losses, and the inability to take adequate measures to protect your data can result in costly fines.
The policy covers the following:
- The cost of damaged systems
- The cost of recovering compromised data
- Data breach costs
- Restoring data of customer
- Cyber protection
You can always request customized coverage for your unique cyber security needs.
Business Interruption Insurance
Businesses must have cash to support emergency finances, operating costs, loans, debts, or mortgages. This insurance ensures that your business continues operating in case natural disasters hit your business or you run out of capital. Business Interruption Insurance’s primary aim is to ensure your business keeps running.
Get Comprehensive Coverage for Your Rage Room Business
We understand the complexity of running rage rooms and the unique risks involved. If you are looking for an insurance policy that provides coverage for your rage room business, search no more.
John M. Glover Insurance Agency provides ideal insurance policies that offer 360-degree protection for your business and ensures seamless operations. Contact us today and give us a call at +18444161688.