The Ultimate Guide to Foam Party Insurance
Foam parties are a unique way to bring people together, but things can get a bit chaotic amidst all the fun and foam. If you are thinking about starting your own foam party business or hosting a big event that involves foam machines, it’s important to obtain the right protection.
Foam party insurance helps cover you and your guests in the event of an accident or injury. Here’s a look at the basics of liability insurance for foam businesses, including costs, what’s required, and common mistakes to avoid.
Keep in mind that this isn’t legal advice, and you should always consult with a licensed professional to ensure you have adequate coverage for your business.
What Is Foam Party Insurance, and Why Do You Need It?
Foam party insurance covers the risks associated with hosting foam parties. These gatherings involve slippery surfaces and large crowds. While that may sound like the perfect recipe for fun, it can also cause injuries or accidents. Even if you are extremely careful, people can still get hurt. That’s why you need liability coverage.
Foam party insurance kicks in if the unexpected happens. You can file a claim with your provider to cover the injured person’s medical costs, as well as any legal fees you incur.
Types of Liability Insurance You Need for a Foam Party Business
There are several different types of foam party insurance you should consider.
General Liability Insurance
General foam party insurance is the type of coverage every foam business needs. Your policy will cover injuries or property damage that might occur during events. If a guest slips on a foam-covered surface and gets hurt, your policy will cover their medical costs and protect you from lawsuits.
Think of general liability coverage as a blanket foam party insurance policy. It protects against the majority of incidents you might find yourself involved in while hosting foam parties. Make sure you carefully review the terms of your policy to ensure it provides adequate coverage.
Product Liability Insurance
Product liability insurance is essential if you use foam machines and solutions in your events. These policies protect you from issues that arise due to equipment malfunctions or defective products. Let’s say your foam machine causes harm to a guest or a foam solution triggers an allergic reaction. Product liability coverage ensures you’re not stuck paying for these damages.
Event Coverage
Event liability insurance provides additional protection for specific events. These short-term policies are a good idea if you only host parties occasionally and don’t need year-round coverage.
Many foam party businesses start as a side hustle. If you are in that stage of your entrepreneurial journey, make sure you have a solid event coverage policy.
Event insurance protects you for the duration of the party and covers many of the same liabilities as a general policy. The main difference is the length of the policy. With that in mind, it’s important to extend coverage beyond the expected start and end times of the party, just in case something happens during event prep or after the get-together ends.
Let’s say you are hosting a two-day foam party. You expect to provide foam from 6 p.m. to 9 p.m. on both Friday and Saturday. You should probably obtain an event liability policy that runs from midnight Thursday through midnight on Sunday.
Additional Coverage Types
Depending on the size of your business, you might want to get additional coverage. For example, you could get equipment coverage for your high-pressure air cannon or snow machine solution.
These high-dollar machines can be costly to maintain or replace. An equipment insurance policy could reimburse you for repair costs or cover machine rental expenses.
As your business grows, you may also need workers’ compensation insurance (if you have employees) or auto insurance (if you transport equipment). It’s best to find an insurance provider that offers a wide range of coverage.
Foam Party Insurance Cost
Rates for one-day parties start at about $110 but can cost much more. The cost of foam party insurance can vary depending on what state you are based in and the size of your events. The amount of coverage you request and your claims history will also have an impact on your insurance costs.
Here are a few tips to help you find affordable coverage:
- Compare multiple quotes
- Look for industry-specific insurers
- Bundle coverages to unlock discounts
Don’t settle for the first offer you receive. Shop around and explore bundling options so you can find the best combination of coverage and affordability. Make sure you don’t skimp on coverage just to save a little money.
What Insurers Will Require From You
Insurers will expect you to demonstrate that you and your employees are committed to safety. They may ask you to submit a list of safety measures you will use at events, such as signage warning guests of potential hazards. Underwriters may also require a list of the machines you use so they can assess the risks of insuring your business.
If you’ve had any previous claims or incidents, insurers will review them to assess your risk level. Be honest about your claims history.
Common Mistakes to Avoid When Getting Foam Party Insurance
Here are a few pitfalls to watch out for when applying for foam party insurance:
- Not Getting Adequate Coverage: Opting for the minimum coverage can leave you vulnerable to large financial losses
- Ignoring Exclusions: Read the fine print on your policy and look out for exclusions
- Not Having Product Liability Protection: Don’t skip product liability coverage, as you could be on the hook for damages if the machines malfunction
- Overlooking Event-Specific Needs: Event insurance can be the better option if you only host occasional parties
Most importantly, make sure you don’t combine swimming pools and foam machines. Foam limits visibility and could make it difficult to spot someone underwater in distress.
Explore Foam Party Machines
You must obtain a comprehensive foam party insurance policy to protect yourself and your business. Without it, you could find yourself facing a lawsuit and severe financial repercussions. Invest in the right coverage so you can enjoy peace of mind and give your guests a night to remember.
Are you ready to start your business? Explore our selection of foam party machines or contact Foam Party Supplies and let one of our team members help you find the ideal equipment for your customers.
