Accidents happen. Some can be predicted, but not all can be helped. Liability insurance helps fight the consequences of these accidents in a way that benefits all parties involved. However, it can be confusing for new rental company to know exactly what kind of liability insurance is needed and why. The list below describes the different types of liability insurance needed to protect a rental company from the everyday accidents that happen to people, equipment, and their inventory. It also includes additional protections companies can implement when they have increased their funds.
There are different types of liability insurance and coverage that one can look at when getting into the party rental business. However , it is irresponsible for a company to opt out of any form of insurance, not only to their business but anyone else who is involved in an accident. Being uninsured puts you as the owner, your employees, and much of the company’s assets at risk. Just having the most basic liability insurance policy can save any company a lot of pain, time, and money later.
General Liability Insurance
General Liability Insurance is the most basic form of insurance and covers the most prominent types of lawsuits. Property lawsuits that refer to customer property being damaged by a company’s equipment, installation, or employee recklessness is covered under the general liability insurance. It protects against most lawsuits that come from a third party which includes if someone gets hurt using your inventory. General liability insurance is extremely important for party rental businesses to have and should be considered the bare minimum of types of liability insurance one must obtain for their company.
It is irresponsible for a company to opt out of any form of insurance, not only to their business but anyone else who is involved in an accident.
Property Insurance is protection which keeps your buildings and belongings safe. This is more of a protection for the damage of company assets versus the general liability which protects against third party harm. Property Insurance can help repair and replace parts of your inventory that get damaged at different events.
Inland Marine Insurance
Inland Marine Insurance is protection for the pieces of inventory that are being shipped or transferred to another location. This is extremely important for party rental companies as they move their inventory for every event. Property Insurance protects from the other forces destroying a company’s products (customers or natural disasters), while Inland Marine Insurance protects against that which is transit and being driven.
Commercial Auto Insurance
Commercial Auto Insurance is a way to protect your drivers and property that may be injured in the event of a car crash. This can also help with payments towards repairing or replacing property not owned by your rental company, but damaged by one of your vehicles. Commercial Auto Insurance ensures that your company and employees are covered even during their traveling time from one location to the next.
Additional Protection Options
There are additional steps that can be taken to protect your company from even further liabilities. Coverage of Conversion and Business Income add even more safety nets to the basic forms of liability insurance we discussed above. These may not be necessarily for businesses just starting out and who are trying to find places to save money. Additional forms of liability insurance should be considered in the future as threats tend to grow as companies do. By increasing protections around a company, it can grow without as much apprehension towards future accidents.
Additional forms of liability insurance should be considered in the future as threats tend to grow as companies do.
Coverage for Conversion
Coverage of Conversion is a type of liability insurance, that protects you from clients who rent your equipment but sell it to the highest bidder. If a client steals or sells your inventory after obtaining it through a rental contract, then Coverage of Conversion will give you new equipment equal to the face value of every piece that was stolen. Most plans also include the option to pay the difference for equipment that is better than the equipment that was stolen.
Coverage for Business Income
Coverage for Business Income is protection from complications that hinder the business from operating. In the cases where there is income loss, severe physical damage, and a schedule limit that happens within the time of restoration, coverage for business income insurance will make up for the loss of income and the continual expenses. This allows businesses to stay open, when otherwise they would have to fully shut down.
Accidents in the party rental industry must be anticipated and prepared for. Liability insurance can help protect company assets and reputations, by taking off the financial pressure of the company in the face of adversity. General Liability Insurance is a must, but there are others that can strengthen a company’s ability to adapt to different situations. Accidents happen, so you might as well be prepared.