The one thing everyone is warning me about is the high cost of insuranse. Obviously this would put a halt to my plan and I need to know where to start gathering liability facts. The business is a sort of indoor play ground for toddlers, where parents can have a place to mingle with other parents while the kids play. I'd like to set it up where the parent would be responsible for watching their own children. Help!!
Thanks
2006-09-22 23:17:42 · 7 answers · asked by ceci 1 in Business & Finance ➔ Insurance
OK, so you're looking at a KidZone type thing. Just because the parents are responsible, doesn't mean you can't be sued if their kid gets hurt! ESPECIALLY if you're providing toys or play area equipment. I'd imagine that the liability insurance would START at $5,000 a year, maybe more. It would probably be based on the number of kids you can have in there at one time, and the hours of operation.
Why don't you ask your agent for a quote??
2006-09-23 07:44:20 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Start with a business plan. What's in your head may not work out financially on paper and therefore won't work out in your bank account. I agree that the insurance cost will be high but think of rental space, equipment, entertainment for kids, entertainment for parents, marketing, administrative costs, etc. It could take several years of working in the red before you see a profit while funding your personal as well as business expenses. I am not trying to tell you it's a bad idea or not a long-range good idea but until the business really gets going, you will be losing alot of money upfront. To compensate for that, you will have to really charge alot to offset your costs and how willing will people be to spend $2, $5, $10 per day for the indoor playground. How many parents are going to be motivated to take the kids every day or even once a week or once a month on a regular basis? Get yourself a good business plan and then start shopping around for actual costs to make your dream a reality. One organization that can help you FREE is the SBA (Small Business Association). They work with entrepreneurs. Again, insurance is a concern but there are many other factors to consider.
2006-09-23 00:09:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unfortunately we live in a "lawsuit as a profession" world. People rarely consider the impact a lawsuit has on a well-meaning individual who probably did everything in their power to make their business safe. Since people believe that they are only suing the insurance company, they forget that it can ruin the person behind the business.
I think that the high cost of insurance will make it extremely difficult for you to implement your business plan. Parents may be required to watch their children, but that doesn't mean they won;t will a suit against you if "Johnny" falls down and breaks his arm.
Judges that reward large sums of money have only contributed to this trend where people will try to set themselves up financially for life by suing the pants off someone else. It's a selfish world, and, unfortunately in this case, the ones who really suffer are the children who will have no indoor playground.
2006-09-26 02:45:02 · answer #3 · answered by Crystal C 1 · 0⤊ 0⤋
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2016-10-17 12:06:13 · answer #4 · answered by ? 4 · 0⤊ 0⤋
There are several of these kind of indoor playgrounds that have failed due to the high cost of insurance. You cannot seriously believe that "the parent being responsible" is going to hold up in an injury suit against you.
I would suggest that you talk to some day care centers about their insurance cost, talk to an attorney who specializes in insurance and also to several insurance companies.
Unfortunately, I think you are going to find that the cost of insuring your business will most likely not let you move forward.
2006-09-24 02:22:56 · answer #5 · answered by tjnstlouismo 7 · 0⤊ 0⤋
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2006-09-22 23:20:31 · answer #7 · answered by Axl Rose 2 · 0⤊ 0⤋