Playground Insurance: Indoor, Outdoor, Cost & Quotes From $5

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Playgrounds are an excellent location to take children to have a good time. They are a gift for parents looking to keep their kids happy and busy. There are different types of playgrounds, including indoor, outdoor, public, or private. Therefore, if you own any of these, it is essential to secure them with playground insurance to cover risks. 

Playground or play centre insurance protects your business against lawsuits and other possible financial losses. This guide discusses the policy in detail and why you should consider getting it. We will also mention its cost with the determining factors. 

Indoor Playground Insurance

Indoor playground insurance comprises policies such as equipment coverage, commercial property, and business interruption. Let’s discuss these policies in detail.

In indoor playgrounds, equipment coverage provides funds for the repair and maintenance cost of crawl tubes, specialty slides, miniature climbing walls, soft floor mats, jungle gyms/obstacles courses, inflatable bouncy castles, and many more.

Getting equipment coverage is crucial because indoor playground equipment doesn’t last for long. This isn’t because they’re not durable, but because kids don’t hold themselves back when playing. And so, damage to equipment can easily happen. The table below shows the replacement costs of the indoor playground equipment, in case of damage:

Equipment coverage won’t work if the indoor playground equipment is damaged after a storm, fire, earthquake, flood, etc. And so, it’s best to get commercial property insurance too. This insurance policy provides coverage for damages disasters incur. It even reimburses the total cost of the damaged equipment, which is useful for recouping capital.

Outdoor Playground Insurance

Policies that ensure indoor playgrounds don’t apply to outdoor playgrounds. The reasons are as follows:

• The expected risks and damage are vastly different

• The equipment doesn’t have the same lifespan

With that said, an outdoor playground business should opt to get outdoor playground insurance. Equipment insurance and public liability insurance comprise this. Allow us to discuss these in more detail.

Equipment coverage for outdoor playgrounds answers the repair/maintenance costs of swings, slides, seesaws, sandboxes, mechanical merry-go-rounds, monkey bars, and still rings. Maintaining/replacing these can be costly. The below table clearly proves this point.

Public liability coverage is an insurance policy that covers lawsuits and settlements if ever kids get injured while playing in an outdoor playground. Accidents involving kids can be very costly and, outdoor playgrounds might find themselves facing million-dollar lawsuits. With that said, public liability coverage can help greatly because it can mitigate costs by up to 40% - 60%.

We almost forgot to mention but know that outdoor and playground insurance doesn’t offer coverage to additional facilities such as juice bars. For juice bars, owners should get a separate juice bar insurance .

Playground Liability Insurance

Playgrounds are fun places for kids. They are found inside restaurants, malls, and other types of public buildings and are installed to bring in customers and increase sales. 

We don’t know if many still remember this but in the past - probably from the 1990s to 2000s - companies like McDonald's have these very fancy playground facilities that we loved as kids. However, these don’t exist now because they’re nothing but a business liability.  In fact, in 1999 McDonald's paid $4 million after failing to report children's injuries to the US government. 

There’s no denying that parents will find a way to hold the business owning the indoor playground liable for injuries their child sustained. 

And so, businesses using playgrounds should consider ditching their entertainment facilities for kids just to be safe. Nonetheless, if doing so isn’t an option,  it’s crucial to get playground general liability insurance. 

This playground liability insurance protects a business from severe financial burden if ever its playground causes injuries to customers.  Available data from 2000 - 2001 clearly shows what types of injuries kids might experience in playgrounds :

Playground owners always have liability when their equipment causes injuries. Nonetheless, to make it fair, everything must be settled through a lawsuit before the playground compensates the injuries of the victim. Nonetheless, lawsuits are costly by themselves. On average, highly experienced personal injury lawyers charge $856/hour for their time. 

As for how much playgrounds might pay if the defense goes sideways,  these true stories  provide a clue:

• 13-year-old Carl Thompson suffers minor injuries when the metal crossbar of the swingset broke and landed on his head. The court ordered the organization responsible for the maintenance of the playground - Centennial Springs Homeowners Association - to pay $40 million to the victim. 

• Parents of a pupil in Ohlone Elementary School Student filed a lawsuit  after their son fell on his face while playing in the playground. Reports state that the agency overseeing the said school paid $200,000 to the plaintiffs. 

• A boy fell from one of the equipments of Burger King’s indoor playground. As a result, the famous fast-food chain had to pay $20 million as compensation  for severe injuries the boy sustained

• While attempting to use the slide in the playground that Griebling School in Howell Township owns, a New Jersey kid suddenly slipped and sustained minor injuries in her hand and arms. Reports state that the school in question had to pay $170,000 for damages.

General liability coverage provides great protection when accidents and injuries occur. Nonetheless, it doesn’t provide absolute protection. And so, additional play centre insurance to get are:

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Premises Liability

Premises liability is an optional policy in your playground liability insurance that covers the costs of incidents occurring with the playground. If you have additional offices, this insurance policy will cover it. A significant concern for you as the playground owner is the safety of your clients. If a child sustains injury within the playground, this policy will help you pay the medical expenses.

Completed Operations Coverage

Completed operations coverage becomes useful if someone chooses to rent your playground facility or the equipment of the playground facility. This policy covers property damage and injuries the playground or its equipment caused during the contract period. 

Products Liability

This is a critical policy for any business. Products liability in play centre insurance is meant to protect your business from damages or injuries caused by faulty, defective, or spoiled products. This policy is fundamental if you sell food at your playground such as ice cream,  sandwiches, and other types of snacks. 

Playground Insurance Cost

So how much does playground insurance cost? The average playground insurance cost is $88 a month or $1,036 a year for a $1 million general liability insurance. It is important to note that different factors affect the cost of playground insurance.  Get a further idea about the cost by taking a look at this table showing the rates of the best playground insurance companies. 

How Much Does Indoor Playground Insurance Cost?

The average indoor playground insurance cost is $58 a month or $696 a year for a $1 million general liability insurance. The factors we mentioned above affect premiums.