Escape room owner – have you given much thought to your business description? Here at RiskBox, we deal with a lot of clients in the immersive entertainment industry, and in many cases their business descriptions will simply read, “escape room”, on their insurance policy. 

While this may not sound inaccurate, it discounts a variety of ancillary services – such as consulting, outdoor experiences, or even food and drink vending – that you likely also offer. So when it comes to making a claim that falls outside that boundary of a simple “escape room”, you could find yourself lacking the right cover.

Here’s why it’s crucial to ensure your business description is correct and up to date…

What is a business description?

A business description is a detailed account of what your company does, including the products, services, and experiences you offer. For immersive entertainment providers companies, this might not only include your main attractions like the physical escape room itself, but also additional services such as food and drink sales, online experiences, outdoor activities, retail sales (such as themed merchandise), and consultancy in the immersive entertainment industry.

Insurance companies use the business description to understand the specific risks your organisation could face. These risks vary greatly depending on your activities, so having a clear description allows your insurer to tailor the coverage and determine the right price for it.

What should a business description include?

If your escape room or immersive experience business provides a wide range of services, it’s essential to explain all aspects of your operations comprehensively. From physical venues to online activities, outdoor adventures, and consulting work, each service has unique risks that should be accounted for in your insurance policy.

A broad yet precise business description might include:

• Escape room venues – Whether they are traditional padlock puzzle-focused rooms or more cinematic experiences involving live actors, physical obstacles or bespoke machinery, be as specific as possible.
• Online escape rooms – Describing virtual or hybrid experiences, including tech platforms used, online game hosting, and virtual interaction.
• Outdoor escape room experiences – Covering mobile or location-based adventures, including event management, health and safety considerations, and venue liabilities.
• Retail operations – Including the sale of themed merchandise or stock related to your business.
• Food and drink services – Offering a café or restaurant, which introduces additional food safety and hospitality risks.
• Immersive industry consultancy – Providing advice and strategy to other businesses in the immersive sector.

The more detailed and accurate you can be about each aspect of your operations, the better your insurer can assess the risks involved and offer the appropriate coverage.

What happens if you get the business description wrong?

Providing an inaccurate or incomplete business description can lead to a variety of problems, including:

• Inadequate coverage – If your business description doesn’t cover all your activities, the policy may not protect you in the event of a claim related to one that you’ve overlooked. For example, if you fail to mention your food and drink service and someone falls ill from a meal, you might not be covered for liability claims.
• Higher premiums – An incomplete or vague business description can increase your perceived risk, leading insurers to charge higher premiums to compensate for potential gaps in coverage.
• Voiding the policy – If your insurer discovers that the description is materially inaccurate, they could void the policy and leave your business without protection when you need it most.
• Legal consequences – Providing misleading information can be seen as fraudulent, which could lead to legal action and the inability to claim on your insurance.

When a business description falls short

Let’s say you run a physical escape room venue, but you also offer online escape room experiences, sell themed merchandise, and provide consultancy for other immersive businesses. 

If your business description to the insurer only mentions the physical escape rooms, but you later face a liability claim related to your online experience or retail activities, the insurance company could refuse to cover you. This could leave you handling the costs of the claim out of pocket.

How to prevent problems with your business description

To ensure you’re fully covered, take the time to break down all aspects of your business. Identify the percentage of turnover that each activity generates and share this with your insurer. Doing so will ensure that every aspect of your business is adequately described, and your policy covers all the risks you face.

Your broker or insurer can help refine the description and guarantee it includes everything from physical venues and retail sales to online and outdoor activities – and beyond.

What to do if your business description is inaccurate

If you’re concerned that your business description is inaccurate or incomplete, contact your broker or insurer immediately. They can update it and issue revised documentation to ensure your coverage matches your operations. This proactive approach gives you peace of mind and helps protect your business from potential risks.

For expert advice or to review your business description, get in touch with our team on 0161 533 0411, email info@riskboxuk.com, or fill out our online form. We’ll help ensure your insurance policy properly reflects your escape room or immersive experience business.