If you’re starting or getting ready to start an indoor playground or Family Entertainment Center (FEC), you’re creating a space full of fun, adventure, and great childhood memories. Having fun also means being responsible and facing some risks. Accidents happen, even when you’ve done everything correctly. This guide is about maintaining the safety and security of your indoor adventure play center. Whether you run a small soft-play area, a large trampoline park, a playground, a climbing gym, or a party venue, we will help you understand the types of insurance you need, how they work, and what to look for in a policy.
What is Indoor Playground Insurance?
Running an indoor playground comes with risks, and indoor playground insurance could provide the cover you need to protect your staff, customers, and your livelihood.
This insurance can protect your business against theft, equipment damage, employee injury, and public claims. It could even cover loss of income if you had to close temporarily.
You may find you need multiple types of cover, including public liability, business contents, employers’ liability, business interruption, and buildings insurance. We’ll run through them all.
Why Do I Need Indoor Playground Insurance?
It’s essential to be prepared for any setback that could affect the smooth running of your indoor playground business.
Your playground may have slides, soft play structures, and expensive specialist entertainment equipment that’ll need protecting against theft and damage. Any disruption to your business can be damaging too, as families rely on your venue for fun and parties. You’ll also need to think about what cover could protect you against claims from members of the public. What if a child fell from a climbing frame or slipped on a mat?
And if you employ staff, you’re legally required to have employers’ liability insurance for any employee who isn’t an immediate family member.
When it comes to workplace accidents, the leisure industry ranks high on the list. Industry reports have often highlighted the frequency of injuries in active-play environments compared to other service sectors in recent years.
What Type of Insurance Do I Need for My Indoor Playground?
Here are some of the most common types of cover you might want to consider including in your business insurance policy.
Public Liability Insurance
If, for example, a member of the public is injured while using your play equipment, or slips and falls on your premises, you could claim on your insurance to cover compensation due to them, or legal costs if they take you to court.
Business Contents Insurance
This typically provides coverage for your equipment in the event of a break-in or fire. It can also cover furniture, fittings, reception desks, play structures, and cafe contents, too. There’s also the option of getting cover for any cash on the premises.
Employers’ Liability Insurance
This could cover you if one of your employees becomes ill or is injured while working for you.
If you employ one or more people or are a limited company with multiple directors, it’s a legal requirement to have cover. If you’re not a limited company, it’s not a legal requirement to have employers’ liability insurance if the employees are immediate family members.
However, if a policy is in place, it would still cover immediate family members working for you.
Business Interruption Insurance
This insurance can help cover lost income if trading is interrupted and you have to close your playground for a period.
If you buy a new business interruption policy, be aware that it’s unlikely to cover claims against events that are already taking place.
Buildings Insurance
If you own the building in which your playground is located, it can make sense to take out commercial building insurance. This covers the cost of repairing damage to your building’s structure or rebuilding it if necessary.
If you rent the space, your landlord is responsible for building insurance.
In What Situations Could Indoor Playground Insurance Help?
Here are some common scenarios in which the correct type of insurance could help protect you and your indoor playground:
- An employee injures themselves – if a staff member slipped on a spilled drink and sprained their wrist, employers’ liability insurance could cover the medical costs, compensation, and legal fees if they claimed against you.
- A customer is injured – if a child fell from a climbing structure and was hurt, public liability insurance could cover damage and injury costs.
- A child has an allergic reaction – product liability insurance could protect you against an injury claim if a child has a reaction to materials in the soft play equipment.
- Your playground is damaged due to fire or flood – business contents insurance could cover the cost of repairing or replacing play structures, furniture, and other equipment.
- You have to close the playground for repairs – business interruption insurance could help protect you against loss of earnings.
- An arcade machine is stolen or destroyed – a new-for-old cover could provide an exact replacement.
- Your primary safety certification is revoked – loss of license cover could reimburse you for loss of revenue. But this only applies where the cause of loss was beyond your control, not due to negligence.
How Can I Protect My Staff and Customers?
As a business owner, you have a duty of care to all your staff and customers to keep them as safe as possible. That’s why it’s essential to follow strict cleaning and safety practices.
To help protect your staff and customers, you’ll need to:
- Carry out regular risk assessments.
- Ensure your staff have adequate training on safety rules.
- Comply with all relevant safety standards and regulations.
- Have appropriate health and safety procedures in place.
- Provide staff with first-aid training and necessary supplies.
- Train employees in safe working practices, including regular equipment checks.
You can find out more about playground risk assessments and safety procedures on the HSE website.
What Do I Need to Get an Insurance Quote?
If you’re looking to get an insurance quote for your indoor playground, you’ll need to provide some key details to insurance providers. While we don’t offer insurance quotes directly, this guide can help you prepare the necessary information to streamline the process. Here’s what you may need to share with insurance companies:
- Business name, address, and postcode
- How long have you been trading
- Forecasted turnover for the next 12 months
- Number of employees
- Claims history
- The type of coverage you’re looking for
Once you’ve gathered this information, you can reach out to insurance providers or brokers to compare quotes and find the best policy for your trampoline park, soft play area, or family entertainment center.
This blog is intended as a reference to help you understand the insurance process and requirements for indoor playgrounds. For tailored insurance advice, consult a licensed insurance provider.
FAQs
How do I calculate the value of my equipment?
You’ll need to calculate the ‘replacement’ value of your equipment, not the ‘resale’ value. That’s how much it would cost you to buy new equipment to replace your current setup, not how much you could sell it for. Be aware of any seasonal adjustments you may need to make to your ‘sum insured’ amount. For example, you may have more portable equipment during peak seasons, such as school holidays. You may need to adjust the maximum value at risk on your policy to ensure you’re not underinsured. Some insurance providers automatically include seasonal variations. Check your policy details to see if you’re covered.
What extras should I add to my indoor playground insurance?
Added extras will usually increase the price of your premium, but you might well want to consider:
- Legal expenses cover – if a claim is made against you, this could help with legal costs such as solicitors’ fees.
- Money cover – this could protect any cash you keep in the till or locked in a safe on the premises. It will usually also cover money in transit. Please note, currently we don’t offer a comparison for money cover.
Does indoor playground insurance cover play equipment?
Yes, indoor playground insurance should typically cover play equipment like soft play structures, slides, and climbing frames. But because they are high-risk items, you’ll likely have to comply with certain conditions set by your insurance provider around regular inspections, cleaning, and maintenance.
Specific requirements will be stated in your policy documents. It’s important to make sure you meet the criteria, or your policy might be invalid if you had to make a claim.
Does my insurance cover birthday parties or private events?
If your playground hosts birthday parties or other private events, make sure you’re aware of what cover you need.
If you hire external entertainers, you’ll need to check they have their own public liability insurance.
Public liability insurance could cover any legal claims if a guest is injured or their property is damaged during an event.
If you offer additional services like catering, you’ll need to ensure your policy covers food-related incidents.
If your staff supervise these events, you must have employers’ liability insurance. Always check your policy details to confirm the extent of your coverage for special events, as some activities might require specific endorsements or a higher level of cover.
