Whenever you budget the expenses of your business, Party Equipment Rentals insurance must be near the top of the list because you can’t always know exactly what could happen in the future.
Need General Liability Insurance for Your Party Equipment Rentals
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With the protection provided by general insurance and all the other kinds of insurance we will tell you about, you can protect your business and yourself in case something unwanted happens.
Like any business owner, for your Party Equipment Rentals enterprise, you must consider how much financial liability you are taking on.
If your Party Equipment Rentals business runs without proper insurance, you are taking a tremendous chance not just of losing some money but of a final wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the results of their actions.
In this article, we are giving very general guidelines for growing businesses to highlight what the main kinds of insurance that you need are, and where we can, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Party Equipment Rentals business?
What this means, for any Party Equipment Rentals business owner, is that if some customer claims that your actions caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Party Equipment Rentals business is not harbored by laws in the same way as states are, where laws can place a “cap” on the maximum level of liability.
In some states, like Texas, there are specific monetary levels that limit the amount a court can award in any case against the state.
In a court case, it’s purely the privilege of the jury to award whatever amount they deem appropriate, even sometimes giving a plaintiff more than they have sued for.
When you are running your Party Equipment Rentals operations, you can’t escape responsibility for the results of your actions.
Even more importantly, unless you have spent in advance the money necessary to have your business running as a limited liability company, all of that liability belongs to you as an individual.
What does Party Equipment Rentals insurance protect you from?
For your Party Equipment Rentals business, the most important sorts of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
As well there are some official kinds of insurance that various states require.
In the next few paragraphs, we will explain the most important points any Party Equipment Rentals business owner should consider when negotiating the insurance needed.
The main types of insurance for your Party Equipment Rentals businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability for your Party Equipment Rentals operations
Any Party Equipment Rentals business is dealing directly with members of the public, and that means you always have the danger that some accident can happen to them bodily or else something of theirs can be ruined.
In such a case, they can sue you for compensation.
General liability insurance policy for your Party Equipment Rentals business covers you against claims coming from injury to customers or damage to their property.
It protects your Party Equipment Rentals business from the claims themselves and in addition to any resulting court costs and legal fees of the lawsuits.
In many cases, it should help you to qualify for extra business from city and state organizations, where contracts demand proper liability insurance.
The normal level of general liability insurance for your Party Equipment Rentals business would be with a boundary of $1 million for a single event and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Party Equipment Rentals insurance operations.
Professional liability insurance for your Party Equipment Rentals business
In the event where a client alleges some negligence, errors, or omissions in how you conducted your Party Equipment Rentals business for them, you can quickly be involved in a monetary claim.
Even if the matter against you is ruled in your favor, the cost of defense can be substantial, and the impact on your reputation can be damaging.
Most small Party Equipment Rentals business should have enough professional liability insurance to cover a single claim of $25,000, with annual cover of $50,000.
See the table in the cost of Party Equipment Rentals insurance section below for average prices of professional liability insurance for your Party Equipment Rentals operations.
Product liability insurance for your Party Equipment Rentals business
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that what you delivered didn’t meet your description of function, or that your recommendation was basically incorrect.
You need to know the explicit laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held responsible for damages caused by products claimed to be defective.
To cover yourself against any possible lawsuit, you need Product liability insurance for Party Equipment Rentals
Only you can estimate exactly how much insurance you must have.
Best advice is to consult with experienced insurance agents, brokers or company representatives for guidance.
Commercial vehicle insurance for your Party Equipment Rentals business
Beware! – practically all policies for private vehicle insurance do not cover any occurrence like theft or accidental damage when the vehicle is being used for business purposes.
The best way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a designated commercial vehicle insurance package.
Commercial van policies insure the value of any vehicle in case of accident, malicious damage, fire, or theft.
As well, in case of any accident, the truck itself, the content and any legal bills, medical expenses, and property damage is insured if your truck is involved in a crash.
Most states, other than Virginia and New Hampshire, require this type of insurance.
The necessary value of the insurance is worked-out for the depreciated value of the vehicle, and your declared level of cover of contents.
Tools and Equipment insurance for your Party Equipment Rentals business
Since your Party Equipment Rentals business needs specialized and expensive equipment, you can appreciate how much it can cost to replace it in case of any damage, loss, or theft.
The tools may be subject to malicious damage, deliberate fire, theft, other such unpredicted acts.
As well, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can destroy your whole business in one stroke.
Unless you can afford to immediately replace such specific gear quickly out of your own pocket, you need full-level equipment insurance so that you can immediately buy everything needed to keep your Party Equipment Rentals business running.
It is hard to advise how much equipment insurance you need – it’s essentially dependent on how much you have invested in your Party Equipment Rentals business’ equipment.
Commercial Property insurance for your Party Equipment Rentals operations
Any Party Equipment Rentals business that owns or rents space in a building should have a commercial property insurance policy.
If you own the space, you certainly have a substantial capital investment, in addition to a big liability if there’s a mortgage.
Your physical building location must carry insurance coverage for the value of the premises and contents against accidental occurrences like fire and storms, and against criminal damages like theft and vandalism.
In other states like Rhode Island, where unlimited cold snaps can cause damage to outer coverings of Party Equipment Rentals business premises, there is a need for more additional cover than in warmer climes.
Because the level of cover depends entirely on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Party Equipment Rentals insurance section below to give some indication of the average prices per million dollars of property insurance for your Party Equipment Rentals business.
Temporary insurance by month, week or day for your Party Equipment Rentals business
Is your Party Equipment Rentals business working part-time or casually, or is the level of business variable?
Using short-term insurance makes perfect sense. Business insurance by the month, day, or week – temporary insurance for Party Equipment Rentals – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having less premiums but still having the same risk cover.
The important feature of short-term insurance is that you buy the cover for a defined period – a specific date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of better business activity, get the existing cover increased.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Party Equipment Rentals business
You have the chance to combine several of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP merges commercial property and public liability insurance by packaging these coverages into one insurance policy, which can save you money.
BOP insurance will shield you if any claims of injury or property damage are made.
It is frequently the right choice for small and medium-sized Party Equipment Rentals businesses, such as yours.
There are two limits that will determine whether BOP is suitable for your own business.
BOPs will not cover your professional liability or commercial vehicle risks.
Also, the size of your business will determine whether you are permitted to take out BOP cover.
The usual business that is allowed to take a BOP policy must have no more than one hundred employees, and maximum five million dollars in annual turnover.
In addition, you must separately take out the mandated worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Party Equipment Rentals business employees
In many states, it is mandatory to have workers compensation insurance when your Party Equipment Rentals business has one or more employees.
Workers compensation insurance covers the business against any costs that arise if a worker experiences an injury or becomes sick as a result of work.
The benefits provide for medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s requirements in this regard can leave you as the employer having to pay penalties levied by the states.
In these states, you cannot take out your workers compensation obligations from private insurance companies.
Workers compensation charges are calculated based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must see the relevant authorities in your state.
Average costs of these types of insurance
Although every Party Equipment Rentals insurance requirement is unique, there are enough examples of usual quotes from insurance companies for us to give rough guidelines, including what are the cheapest rates offered.
Of course, you should always check with a broker what’s relevant for your business.
The list below is of annual premiums we have researched for the main types of insurance your Party Equipment Rentals businesses needs.
|Types of insurance||Price range|
|Equipment insurance||$491 – $1194|
|Product liability insurance||$309 – $701|
|Commercial insurance||$971 – $2591|
|Public liability insurance||$370 – $596|
|Commercial vehicle insurance||$1979 – $2663|
|General liability insurance||$608 – $834|
Cost of insurance for your Party Equipment Rentals operations depends on many different factors.
We have estimated these figures for small freelance Party Equipment Rentals businesses.
The location and size and type of your Party Equipment Rentals business can have a big effect on the cost of different policies.
You should consult with professional insurance agents and brokers, or insurance company representatives.
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Also you can let the internet do the work for you by enquiring about insurance companies near where your business is located.
Another reliable source of information is the local Better Business Bureau in your suburb.
What is small business insurance for Party Equipment Rentals operations?
This is a wide term used to describe standard insurance policies designed to protect Party Equipment Rentals business owners from risks like bodily injury, property damage, claims of negligence.
Does my Party Equipment Rentals business have to have insurance?
Some of the types of insurance are not mandatory for you to run your business, but they can protect you from risks in your business operations.
Some other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Party Equipment Rentals business insurance policy cover?
Liability insurance provides coverage against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The exact cover will vary based on your own operations.
See the table in the costing section above for average prices of the most common policies for Party Equipment Rentals insurance.
How much will Party Equipment Rentals business insurance cost?
As well as the size of the business, certain other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.