Also, understand specifically what the exact words mean. For example, there could be an exclusion for a child's entertainment business from the use of trampolines. You might say well inflatables aren't trampolines. CHECK WITH THE UNDERWRITER and get their answer in writing. Odds are they will say trampolines and inflatables are the same thing and not covered. At least you know and can make a business decision on that information. Don't just cross your fingers and hope the legal gods smile on you.
TIP on Incorporating. It only costs a few hundred dollars in most states to incorporate. Once you get your articles of incorporation from the state go on the IRS website and apply for an EIN (employee identification number). Once you have those two things you can open a business checking account and you've just set up a new layer of protection. Make sure to renew your business with the state (pay the fee), keep a basic shareholder meeting (it can be all of a couple minutes and a paragraph of writing) and file your annual tax returns (remember federal returns are due one month before personal returns are due).