Party Rental Business Insurance

Why is Party Rental Insurance Important?

It’s hard to imagine a business more focused on fun than the party rental business. Your company helps prepare clients to host a wide array of exciting events from birthdays to bat mitzvahs. But there are intricacies and risk to the party rental business that aren’t immediately apparent and that you need to be prepared for.

Protecting your party rental company with the right insurance package is about more than protecting the equipment you have invested in and rent to others, although that is also crucial. You also have to think about the potential risks of someone becoming injured using the equipment you have rented to them. If injuries happen, you could be liable for related damages such as any costs for property loss or medical costs, in addition to any settlments, judgements and legal costs incurred. A good party rental business insurance package can diminish your liability risk and therefore your losses so you can continue to grow your business with confidence.

As a party rental business, you may rent out any or all of the following:

  • tables
  • chairs
  • tents
  • dishware and glassware
  • plates and flatware
  • bar structures
  • stages
  • heaters
  • linens
  • cookware
  • amusement rentals such as inflatables and mechanical rides
  • A/V and other electronic equipment
  • Stages, dance floors, platforms and podiums
  • various other equipment

When renting out these party rental items whether in the short-term or longer term, you need to consider the following coverages:

Small Business General Liability Insurance – this insurance will protect your small business from issues of general liability that are often associated with businesses. Commonly, general liability insurance can cover third-party bodily injury, damage done to the property of others, product liability, and tenant liability (damage done to the business’ building that is leased from a landlord). With the help of ALIGNED’s expert business insurance brokers, you can find the coverage best suited to your party rental business.

Small Business Property Insurance – your small business property insurance will protect your rental equipment and other assets contained in your business if damaged or destroyed by perils like fire, theft, water damage etc.. You may want to consider adding vandalism and malicious mischief protection to your property insurance policy.

Small Business Auto Insurance – more than likely, your party rental equipment business includes a delivery cargo van or other methods of dropping off rental supplies to your customers’ venues. You should consider coverage that includes accident benefits, third-party injury liability insurance and third-party property damage liability. While your staff is well trained, sometimes accidents can happen on company time and it is important to be prepared and well insured.

Small Business Umbrella Coverage – this coverage is designed to kick in when general liability coverage is exhausted or limits are reached. It adds an extra layer of protection to fill in any coverage gaps.

What are some liability scenarios that could affect a party rental business?

  • A children’s ride you have rented out for party malfunctions due to a manufacturer’s defect and causes minor injuries to several young guests at a birthday party. The parents are angry and decide to take action against your company.
  • Your work van is hit broadside while travelling to a wedding, and several wooden chairs and tables in the back of the vehicle are damaged.
  • A stage you have rented collapses during a performance because it was not properly set up by the customer and some of the band’s equipment is damaged. The customer blames your company and seeks financial redress to pay for the damaged equipment.

Will Insurance Protect My Business from Everything?

Although you have party rental business insurance, you might not be protected against all risks.

There are many types of insurance, and they provide different coverages for your party rental business. You can also choose to omit certain insurance types. You might purchase small business auto insurance but decide to skip out on small business property insurance.

The amount of coverage can also differ depending on how much protection you want, your unique operational risks, and your budget. As a result, almost no two insurance policies will look identical even if you purchased the same types of insurance.

For example, you might purchase small business general liability insurance and decide that the coverage you get from your insurance policy is enough for your party rental business. However, another party rental business might want higher coverage limits, so they purchase small business umbrella insurance as an extra layer of protection.

Your party rental business insurance can also specify specific perils that are covered or not covered by your insurance policy. Common insured perils can include fires, vandalism, or theft, but your insurance might not protect your party rental business against earthquakes, explosions, or certain falling objects.

It’s important to read your insurance policy carefully and ask your insurance company what perils are covered under the insurance policy and which ones are not.

What is Equipment Rental Insurance?

When you rent party equipment out to your customers, they become responsible for the equipment they loan.

Whether you rent equipment on a short or long-term basis, offer delivery and pickup services, or have different equipment payment options, your party rental business is responsible for ensuring your equipment stays in top condition at all times.’

Equipment rental ensures that your party equipment is protected from any liability risks associated with renting out your party equipment. It can mitigate any damages that your business suffers in the case of injury, property damage, and any ensuing financial losses like medical or legal fees.

How Much Does Equipment Rental Insurance Cost?

The cost of equipment rental insurance for a party rental business is largely dependent on the value of the equipment you own and the amount of coverage you have.

Other factors contribute to the cost of business insurance premiums, such as:

  • Business location
  • Whether you operate vehicles and offer delivery services
  • Size of your business
  • Type and cost of your equipment

You might find that although you and a competitor both operate a party rental business, the cost of your equipment rental insurance can be different. To get the most accurate cost estimation, you should get an insurance quote according to your tailor shop information.

Find the Right Party Rental Insurance from ALIGNED

ALIGNED Insurance brokers are here to help you decide on the best coverage for your party rental business to cover your business in the event of unforeseen circumstances.

We know that as a party rental your big or small business tries to save money where it can. Our brokers are not just commercial insurance specialists, we’re advocates who work on your behalf to get you exactly the insurance coverage you need to protect your party rental business at rates you can afford. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.

Related Posts:


Buy Insurance Online Now!

We offer online insurance products for multiple industries, just fill out a simple application form and get a quote today!