Company insurance is intended to safeguard the financial assets of a business owner and is an important investment for a bounce house business.
This article will go over bounce house insurance, such as general liability insurance and other coverage that are appropriate for this industry.
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Bounce House General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That General Liability Insurance For A Bounce House May Cover
Example 1: A youngster is playing in one of your bounce houses when his foot gets caught in a fissure and he fractures his ankle. While your bouncy house company may eventually be held not responsible owing to the risks the client accepts while utilising your bounce homes, the child’s parents may still launch a lawsuit. Your general liability insurance will cover your legal bills, as well as any compensation or settlement as a consequence of the injury.
Example 2: An eager mom comes into your store to explore what kind of bounce house experience would be ideal for her child’s birthday celebration. She stumbles and falls on the tile floor as she exits the bathroom, breaking her hip. Her medical bills would most likely be covered by your general liability insurance.
Example 3: While putting a package of goods onto a customer’s vehicle, your employee loses control of the forklift and drives a fork through the side of the truck. Damage to your customer’s property is likely to be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical bounce house in the United States pays between $300 and $800 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required for Bounce Houses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all bounce houses should have are as follows:
Insurance for Product Liability
While clients who hire your bounce houses accept some risk, there is always the danger that one of them may file a lawsuit against your company due to an accident or injury. If a consumer sues your bounce house company for harm caused by one of your goods, your product liability insurance will cover your legal fees. If settlements are required, your coverage covers payment for them.
Insurance for Workers’ Compensation
Workers’ compensation coverage is required for any staff you recruit to assist run your bounce house company. The insurance will cover the costs of treating employee injuries acquired while doing work-related responsibilities. It will also assist to compensate workers for lost earnings while they are out of work due to the injury. Workers’ compensation insurance is required by law in most states for firms with employees.
Coverage Options for Some Bounce Houses
In addition to the insurance listed above, your bounce house may need other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
When the limitations of your general liability insurance policy are surpassed, a business umbrella insurance policy is intended to offer coverage. An umbrella insurance may be particularly useful if your firm is found accountable for something exceedingly expensive, such as if you lose a lawsuit and are forced to pay large sums of money.
Insurance for Commercial Vehicles
A business car insurance coverage must cover the vehicles you use to transport bounce houses to your clients. Your state mandates that the commercial cars you drive be insured, both to protect you and your workers and others on the road. In the case of an accident, the coverage will assist in covering the expenses of car repair/replacement, other vehicles damaged by you or your workers, and medical bills for the wounded.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.