Are you wondering about the best insurance policies for a rage room? If YES, here are 5 best insurance policies for a rage room.
Starting and managing a rage room involves renting space where you can let customers therapeutically destroy the content within. These rooms also referred to as anger or smash rooms, can be quite lucrative, especially since owners generate revenue from buying objects like glass, ceramic, and other destructible materials at as low a price as possible.
To start this business, you will need a room or building to organize your tableaus and schedule customers. In addition, you’ll need storage space for all the breakable objects you are expected to regularly source.
Note that this might be provided with your rental, or perhaps you can store items in your own garage or basement. Rental rates are known to differ across board depending on your region, city, and even the part of town where you set up operation.
Also, note that your space might be a vehicle designed as a rage room. But to do this, you will have to acquire or rent a trailer. And without doubt, your costs will increase if you will have to purchase a vehicle to go into mobile operation. In addition, you should come up with winning strategies for finding the objects.
Try to get most of what will be destroyed for free as this will ensure higher profit margins. Most importantly, you will also need adequate insurance for your business. Even if you operate your rage rooms as safely as possible, minor injuries can still occur, and your landlord might refuse to rent to you unless you acquire liability insurance.
Rage rooms need insurance for the same reasons as any other commercial venture – to meet their legal obligations, to satisfy lender conditions, and to protect themselves against catastrophic financial consequences in the event their business is impacted by a major peril.
Owing to the unique risk profile associated with the presence of weapons and rage, it can be daunting for rage rooms to source the right coverage, even though they do everything in their power to render their business both safe and responsible.
Aligning with an insurer who specializes in the entertainment industry will more or less prove to be the best choice. Have it in mind that rage rooms do not only face weapons-related perils, they could be affected by an act of nature, such as a wildfire, earthquake, or hurricane.
Other necessary equipment can break down and urgently need to be replaced or repaired. In addition, cyber criminals can breach a rage room’s digital assets, stealing customers’ credit card details – a common threat in this modern age that could result in costly litigation.
In the case of mobile or outdoor rage rooms, environmental liability is another peculiar threat that should always be taken into account. By acquiring rage room insurance, rage rooms can move on confidently knowing that their business has the best chance of recovering, even in the face of disaster.
Best Insurance Policy for Rage Room and How Much They Cost
Rage Rooms are more or less a place where people go to release pent-up rage. But, during the course of expunging this anger and tension accidents can and will happen.
However, owing to the nature of the rage room business it can be hard to find coverage, but it is imperative for rage room owners to source adequate insurance and protect their customers and businesses. Here are basic insurance policies to acquire;
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Commercial General Liability
If a customer or a visitor was to file a bodily injury or property damage claim, general liability coverage is tasked with covering a huge portion of your legal defense costs, as well as settlement fees.
Have it in mind that this relates to situations such as someone tripping on a wet floor, or accidental vehicle damage caused by an employee. Rage rooms will also, however, need more specialized liability insurance, offered by niche insurers.
Cost
According to reports, the average Rage Room in America spends around $500-$1,100 per year for $1 million in general liability coverage.
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Commercial Property Insurance
If your rage room business owns the space it uses, then it is imperative that you acquire property insurance for the building. Have it in mind that this insurance policy normally insures commercial buildings and the equipment kept inside them.
However, when choosing property insurance limits, it is pertinent to ensure that your rage room’s equipment is properly covered. You may not even consider items that get destroyed since they often have little or no fair-market value.
However, you will have to consider the value of computers, permanent furniture, and safety gear that your business uses.
Cost
The median cost of commercial property insurance is $63 per month or $755 per year with a limit of $60,000 and a median deductible of $1,000.
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Worker’s Compensation Insurance
If you intend to employ workers in rage room (full-time or part-time), then you are legally expected to source workers’ compensation insurance. This type of coverage will help compensate your employees in the case that they get injured on the job.
This coverage is a requirement in most states if you have employees. It provides coverage for bodily injury, medical bills, loss of income, and death for all employees, full-time or part-time.
Cost
In the United States, the average cost of workers’ compensation insurance is $936 per employee, per year, or $78 per month
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Business Interruption Insurance
Have it in mind that natural disasters and other incidents could occur and leave your business unable to open and generate revenue.
Therefore, business interruption insurance may offer supplemental revenue during times like these. In addition, if your rage room doesn’t have a cash reserve, it is imperative to get business interruption insurance to help with lease, mortgage, and other payments following a covered disaster.
Cost
In the United States, Business interruption insurance tends to costs around $40 and $130 per month ($500 and $1,500 per year).
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Cyber Security
Note that this kind of rage room insurance protects you from financial loss relating to the theft and malicious use of your electronic assets, including publicizing your members’ names and addresses.
Cost
The average cost of cyber insurance in the U.S. is $1,485 per year or $124 per month.