A go-kart business provides indoor racing opportunities for go-kart enthusiasts. Races include go-kart rentals, track use, and other race-related activities. Modern go-kart businesses offer drivers the platform to engage in low, medium, or high-speed races on indoor race tracks.

Services in these businesses tend to include go-kart rental, safety gear rental, custom race options, and by-the-hour track use. A go-kart business can be a standalone entity or exist as part of a larger entertainment centre, park, or public attraction.

Note that an independent go-kart track generates revenue from either individual rides or monthly membership. In addition, successful tracks utilize ongoing payment “packages” to ensure visitors return.

Basic go-kart tracks make money from races, but some may charge extra for site-provided safety equipment. Small amenities like food and drinks, can make money for a go-kart track too.

Customers are mainly charged, on average, about $5 per ride. Safety gears are rented for between $5 and $10 as their use limits overall track usage. A go-kart business that want to make more money sometimes considers yearly memberships for between $100 and $200, or even offer special memberships for quick-access riding.

Even though a go-karting business can be expensive to open, its profits can be large. LLC go-kart businesses can make between $500,000 and $700,000 yearly, if they’re smart about attracting and retaining visitors.

In a go-kart venue, you have a huge pack of strangers racing each other at high speed. What could possibly go wrong? The answer, of course, is a lot. While go-kart centres tend to take every measure to ensure safety, the bottom line is that accidents can happen, especially when guests don’t follow the rules.

That is why adequate liability waivers are crucial to ensure that you won’t be held liable for lawsuits in those occasions. Go-kart business owners are always advised to talk to a legal expert on how to implement liability waivers into their go-kart business.

It’s pertinent to remember that every business benefits from being insured. Even if go-karting wasn’t an aspect, there are certain types of insurance that are common among every small business, which helps to protect the company in the event of litigation or unforeseen accidents.

But as a go-karting venue, have it in mind that your business has even more reasons to be insured, especially since the risk of accidents is so high. As a business owner, you’ll benefit greatly from being aware of all your options, and that’s one reason why you need to read on and understand the basic insurance you need for your business.

Necessary Insurance Policies for a Go-kart Business in the United States

Note that the need for adequate insurance is the same whether you’re opening a brand new go-kart venue or simply adding a small track to an existing family entertainment centre. Whether you’re adding 3 go-karts or 100, the need for insurance is all the same. Below are some types of insurance that you should consider for your Go-kart business:

  1. General Liability

General liability insurance is a type of insurance that no business owner should go without, whether they’re running a complex go-kart course, or selling coffee down the street. This insurance policy is the basis of all insurance needs, and it’s exactly what it sounds like — it safeguards the business from certain liabilities, such as injuries and property damage that result from unexpected accidents.

Since general liability insurance is so enormous, there are countless types of policies that have vastly different premiums. Have it in mind that finding adequate general liability insurance for your specific business needs can be more daunting than you might think, and that’s why it’s important to consult with a team of experts who know the world of insurance inside out.

  1. Property Insurance

This insurance is another type of protection that’s very common and important among most business owners. If you own real-estate and/or the building in which you operate your business, property insurance will help to cover damages when disaster strikes. Just like general liability insurance, property insurance is diverse across the board and you’ll need to find a policy that’s tailored to your situation.

Do not forget that property insurance usually applies for accidents that are out of your control — arson, theft, vandalism, and natural disasters are good examples. If there’s reasonable evidence to believe you could have prevented the problem within your means of operation, this insurance might not apply. This insurance is very crucial for a go-kart venue. Note that the racing tracks are susceptible to all kinds of damages, and they can negatively affect your business. You’ll want to fix the problem as soon as possible to ensure that business continues, and in a safe environment no less.

  1. Go-Kart Equipment Coverage

In this business, equipment coverage is an insurance coverage you’ll definitely want, because of how much maintenance the go-karts require. The go-karts themselves will also require to be ensured. Although it all depends on what policy you go with, this coverage could fall under multiple insurance types. However, you need equipment coverage to also cover that vast amount of tools, machines, and resources you use to maintain your go-kart venue.

Note that you will need to regularly tend to the tracks to ensure that they’re safe and up to code, and go-karts will need constant upkeep. You will also be using specialized equipment for a lot of this work, and that’s where this insurance comes in handy. If you experience equipment failures or breakdowns, this insurance can help to cover the costs. This coverage can also help pay for the expenses associated with mandatory inspections, which any family entertainment centre will experience on the regular.

  1. Workers Compensation

Even though general liability insurance protects your business from accidents, it usually doesn’t cover damages that you had the power to avoid. It simply means that a lot of workplace injuries aren’t covered. In a worst case scenario, an employee could litigate for the injuries they incurred in the workplace, and that’s where workers comp insurance is the most useful.

Note that if an employee ends up with medical expenses from the workplace accident, workers comp insurance can pay them for the time they were out of work, as well as their medical costs. In return, the employee forgoes the right to sue the employer. Have it in mind that this is a mutually beneficial solution, and it’s usually the easiest and quickest one as well. Without workers comp in place, you might end up with a months-long legal battle that will drain the wallets of both business and defendant.

How to Get the Best Insurance Policies for a Go-kart Business

Every insurance policy needs to be tailored to the business owner’s unique situation. This makes it important to shop around for a policy that fits your business and your budget. Below are things to consider when buying insurance for your go-kart business:

  1. Know Your Risks

Insurance for your go-karting business always need to include liability coverage for harm you cause others. However, only getting this third-party coverage’s means damage to your business or injuries to you and your customers aren’t included, so you may want to add coverage for your first-party risks. A good insurance agent can help identify your greatest risk exposures.

  1. Search for Value but Never Underinsure

Note that you don’t want to be underinsured, but you also want to avoid buying unnecessary coverage. If a basic insurance policy is not sufficient to cover your risks, don’t hesitate to add endorsements or look for broader coverage. If you can afford it, the highest amount of insurance coverage available is the best option when dealing with sensitive businesses. Some of the most common mistakes go-kart business owners make when getting commercial auto insurance include:

  • Not fully insuring their go-kart
  • Not purchasing an auto liability policy
  • Not buying enough insurance
  • Not opting into uninsured and underinsured motorist coverage
  • Not electing to purchase comprehensive coverage
  1. Use an Agent Who Knows the Industry

General liability insurance is not industry-specific, but go-kart business owners still need to consider their industries when shopping for coverage. An agent who has experience in the family recreation and fun business can anticipate your risks and their impacts. That way, they can help you buy the right coverage with the appropriate limits for your particular exposures.

  1. Include All Pertinent Information on the Application

Note that the information provided on your insurance application tells your agent, broker, or underwriter how to best cover your specific risks, so you want to be as accurate and honest as possible. It does not only help protect your business, but it may also prevent you from being denied coverage if you file a claim.

How much does it Cost to Get the Best Insurance Policies for a Go-Karting Business

Your go-karting business insurance cost is the sum of all your yearly premiums. Nonetheless, businesses with similar insurance needs can end up paying different rates because insurers look at a variety of factors to determine premium.

General Liability Insurance

  • Coverage Amount: $2 million
  • Annual Premiums: $350 to $800

Commercial Property Insurance

  • Coverage Amount: $10,000 to $100,000
  • Annual Premiums: $380 to $1,000

Commercial Auto Insurance

  • Coverage Amount: $1 million
  • Annual Premiums: $1,500 to $4,200

Workers’ Compensation Insurance

  • Coverage Amount: $500,000
  • Annual Premiums: $2,000 to $4,200

Umbrella Insurance

  • Coverage Amount: $1 million
  • Annual Premiums: $400 to $1,500

Best Companies and Providers That Offer Insurance Policies for a Go-kart Business

The best insurance companies boast of strong financial stability as well as excellent online features, competitive costs, and simple claims service. Other considerations include additional services and policies available to small business owners, as well as customer feedback.

  1. AP Intego

As a broker, AP Intego aligns with numerous top-rated insurance carriers to bring coverage to business owners. Note that this makes it the ideal choice for business owners who want to compare insurance policies before they buy. This company is a highly rated business insurance broker that uses a digital platform to simplify the insurance application process. Business owners can complete the application in just five minutes to get instant quotes for most coverage, and then complete the purchase online.

  1. GEICO

GEICO is a great commercial insurance company that has developed ride-share insurance that’s a hybrid of personal and commercial auto and provides coverage through all phases of a ride-share, including adequate insurance to motorised vehicles and related businesses. GEICO is a national carrier known mainly for competitively priced auto related insurance, covering 28 million vehicles across the U.S. The provider can write commercial auto insurance for a sole proprietor with a single company car or a fast-growing business with an entire fleet of vehicles, and offers fast, 24/7 claims service.

  1. Progressive Commercial

New business owners looking for ways to save money on their auto related insurance may benefit from getting quotes with Progressive Commercial. The insurer boasts of eight discounts for qualifying policyholders, including some for bundling policies, paying premiums in full, and signing up for electronic payments. This company is a big insurance carrier that specializes in commercial auto insurance for most motor vehicles, including cars, trucks, and buses. It offers business owners fast online quotes for customizable insurance and 24/7 customer service.

  1. The Hartford

The Hartford features additional savings for fleet owners looking for commercial auto insurance with its Fleet Ahead program, which uses telematics and real-time data to help improve safety. This company provides excellent customer service as well as professional claims support. For many years, this company has been helping businesses with their insurance needs. Business owners can get a free quote online or call to work with a representative for obtaining information on business car insurance.

  1. Hiscox

Hiscox provides a hired and non-owned auto liability endorsement business owners can add on to the general liability portion of their business owner’s policy. Note that this makes Hiscox ideal for business owners who don’t have company-owned vehicles but regularly rent, hire, or lease vehicles for business activities. This company has been writing commercial policies to cover business owners for over 100 years. The company is known for developing deep expertise that helps it create quality products to match the unique risks in specific industries.

Conclusion

Most insurance policies tend to fall into certain predefined categories. In this business, you are going to want one that’s well-suited and adequate, and if you talk to any old insurance provider, you’re unlikely to find solutions that are uniquely tailored to your situation. With a go-karting business, it’s very important to make sure that you’re protected with the right insurance.

Ajaero Tony Martins
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