As an escape room or immersive experience provider, liability claims are an inevitable part of your business. Whether it’s a customer injury or a dispute over your services, claims can sometimes arise – even when the allegations are not valid.
At RiskBox, we’ve dealt with a range of spurious claims over the years. Here are some of the most common examples you might face, and how the right insurance can protect your business.
1. Workplace accident claims
In a highly interactive environment, it’s important to be prepared if things go wrong. Perhaps a set piece or prop isn’t properly secured in your escape room or immersive venue, and a player sustains an injury.
In one case, an event organizer we worked with was involved in a similar situation: a performer got hurt due to an unsecured barrier. Despite the clear fault lying with the venue and contractor, the injured party submitted claims against both the venue and the organizer.
The good news? Our client had the appropriate insurance coverage in place, which allowed them to defend against the claim. Without the proper cover, this claim could have resulted in a significant financial loss or a lengthy legal battle.
What you need to know: Always ensure you have the right Liability Insurance for accidents that happen at your venue. You may not be at fault, but without the right policy, defending yourself can be difficult.
2. Alleged faulty or unusable experiences
In another case we handled, a specialist experiential agency was faced with a client who refused to pay for a bespoke and complex project, claiming the experience they provided was unusable – despite the experience being well-received and running smoothly on the day.
The client’s claim was deemed vexatious, as they were in financial difficulty and trying to avoid paying for services. Thanks to the right insurance coverage, our client was able to defend the claim and prevent any financial loss, whilst protecting their reputation.
What you need to know: Disputes over the quality of your experiences can sometimes escalate into spurious claims, especially if a client is trying to avoid paying. Be sure your insurance covers both Breach of Contract and potential Professional Indemnity issues.
3. Health and safety claims
Sometimes, Liability claims come from incidents that, at first glance, seem insignificant. For example, one of our clients in the entertainment industry faced a claim after a guest sustained a minor injury – an accidental splinter while reaching for something on the floor. Despite the injury being minimal, the guest pursued a claim to cover medical costs and even “shock” from the incident.
Although the claim seemed dubious, after discussion with the insured company, the insurer chose to settle to avoid the high costs of legal fees. The claim resulted in a substantial payout to the guest – but thankfully, our client’s insurance policy covered the costs, sparing them from having to pay out of pocket.
What you need to know: Even seemingly minor incidents can lead to significant claims. Having adequate Public Liability coverage is essential to protect your business from health and safety claims.
4. Strategic legal tactics in contract disputes
In some cases, businesses – especially those under financial strain – may use legal threats as a tactic to avoid paying for services. A business may claim breach of contract or even negligence as a way to avoid settling invoices.
This is a common strategy, and unfortunately, it’s often used against agencies and event organisers that provide immersive experiences – especially when payment is overdue.
What you need to know: With the right insurance in place, you can confidently pursue any outstanding payments, knowing that you’re protected if an unfounded claim is made against you.
5. Spurious claims
In today’s litigious society, it’s not uncommon for people to seek financial compensation for accidents or events, even when the venue or organiser is not at fault. Whether it’s an injury on your premises or an accusation that your experience didn’t live up to expectations, liability claims can be costly to manage, even if they are baseless.
That’s why having comprehensive Liability Insurance is essential for escape rooms and immersive experience providers. It ensures you have the support and financial protection you need to defend your business against unwarranted claims.
What you need to know: If you face a liability claim, contact your insurer immediately. They’ll guide you through the claims process and ensure you’re protected. And if you’re unsure whether your insurance policy covers the risks specific to your business, speak with a broker who understands the immersive experience industry – like RiskBox.
No Spoilers: Tailored insurance that doesn’t play games
If you want to make sure you’re properly covered or need help navigating potential claims, we’re here to help. At RiskBox, we offer specialised advice in commercial insurance for escape rooms and immersive experiences, through No Spoilers – our entertainment industry-specific package that won’t leave you puzzled.
Call us today at 0161 533 1705, or email enquiries@nospoilers.co.uk for a consultation. Alternatively, you can fill out our contact form, and one of our team members will get back to you as soon as possible.