Starting your own escape room or immersive experience business is exciting, but it also comes with significant responsibility. 

One of the most important steps in protecting your investment is securing the right insurance coverage. Whether you’re building a new themed environment or expanding your offerings, insurance ensures that your business, assets, and customers are covered in case the unexpected happens.

In this blog, we’ll explore five of the most basic areas of insurance that are must-haves for anyone running your escape room business. It’s by no means exhaustive (not even touching on cyber or director liability risks), but it should act as a good foundation for most.

1. Public Liability Insurance

Public Liability insurance is essential for any business that hosts members of the public. For escape rooms and immersive experiences, you’re welcoming large groups into a confined, interactive space – increasing the risk of accidents. This insurance covers you in case one of them is injured or their property is damaged due to your actions or the conditions of your premises.

As a side note, it’s increasingly important to consider your liability exposure resulting from terrorist incidents. Failure to provide sufficient security could lead to existential threats to your venue.

What could go wrong?

Imagine a customer trips over a loose floorboard in one of your rooms, injuring themselves and requiring medical attention. If they decide to take legal action for their injuries, your Public Liability insurance will cover the legal fees and compensation – saving your business from financial devastation.

2. Employers’ Liability Insurance

If you have staff working in your escape room or immersive experience business, even if they’re only family members, you’re legally required to have Employers’ Liability insurance. This protects you if they suffer an accident or illness related to their work – ensuring you don’t fall foul of the law and get hit with hefty fines.

What could go wrong?

Say a staff member is injured while resetting one of your rooms – maybe they lift a heavy object and strain their back. They could file a claim for compensation. Employers’ Liability insurance will cover the cost of medical treatment and legal fees.

3. Property Insurance

Escape rooms and immersive experiences can be impressive builds, requiring significant investment in property and equipment, including set designs, furniture, and technology. Whether you own or lease your space, it’s essential to insure your assets (and to insure them to their full value).

Property insurance protects against damage or loss of physical property due to incidents like fire, theft, or flooding. This includes not just the structure itself, but also the bits and bobs inside.

What could go wrong?

You arrive at work one morning to find that a burst pipe has flooded your venue, damaging props, electronics, and furniture. If you haven’t insured your property, you could be left with a costly repair bill just to get operational again. 

4. Business Interruption Insurance

Unexpected disruptions – like fires, theft, or even major cyber incidents – could force your escape room or immersive attraction to close temporarily, leading to a loss of income. Business Interruption insurance helps cover the loss of revenue and any ongoing expenses during this time.

Some Business Interruption policies may also offer extensions like:

• Denial of access: Covers revenue that’s lost when customers can’t access your premises due to outside events, like a street closure or public emergency.
• Loss of attraction: Covers revenue loss from a decline in foot traffic after a negative event, such as a high-profile incident near your location.
• Utility interruption: Covers costs if a utility failure (like a power cut) forces you to close your business.

What could go wrong?

Say there’s a fire at a nearby building that results in a temporary road closure. Your venue is forced to close for several weeks, causing a loss of bookings. Business Interruption insurance can step in here, helping you cover ongoing costs while you’re closed.

5. Legal Expenses Insurance

Running an escape room or immersive attraction involves juggling multiple responsibilities – from managing staff and suppliers to handling customer complaints and business contracts. If a legal dispute arises, the cost of defending yourself can quickly escalate. That’s where Legal Expenses insurance comes in.

Legal Expenses insurance covers the cost of legal representation and advice across a wide range of scenarios, including employment disputes, tax investigations, and contract disagreements. Having access to expert legal support ensures you’re not navigating complex issues alone, and helps you make confident, informed decisions.

What could go wrong?

Imagine a former employee alleges they were unfairly dismissed after raising concerns about working conditions during busy weekends. Even if you believe the claim has no merit, you may still be required to defend your business at an employment tribunal. Legal Expenses insurance can help cover the cost of solicitors, court fees, and settlements if needed – saving you from significant financial and reputational damage.

Find Out Which Essential Insurance Your Escape Room or Immersive Attraction Needs

Comprehensive insurance coverage is crucial when starting or running an escape room or immersive experience business. The right policies protect your venue, your staff, and your customers from a variety of risks – leaving you able to focus on providing memorable, fun, and safe experiences.

Insurance requirements may vary based on your specific business needs, so it’s always a good idea to speak to your broker or insurer for tailored advice. To get expert guidance on the best insurance solutions for your escape room, contact the friendly team at No Spoilers today on 0161 533 0411 or fill out our contact form. We’ll ensure your business is well protected.

Photo by Escape Games Nottingham – Escapologic®