Due to the nature of the business, operating a bounce house rental company comes with unique risks. However, successful business owners in this niche excel at mitigating those risks through comprehensive insurance coverage.
In this article, we will explore the risks associated with operating an inflatable rental business and explain how to make sure you obtain the right bounce house liability insurance.
Insurance Coverage for Bounce House Injuries
The American Academy of Pediatrics published a study on bounce house-related injuries in 2012, which produced concerning findings. According to the study, in 2010, an average of 31 children a day were treated for bounce house injuries at emergency rooms.
As of late 2022, the rate of injuries had not declined, with recent estimates stating that approximately 10,000 people receive treatment in emergency rooms each year as a result of bounce house accidents. Bounce house injuries are not always due to poor training or user error.
An estimated 479 people have sustained injuries in bounce houses since 2000 due to weather-related events. There have also been 28 reported deaths during that timeframe.
Bounce house rental companies can be held accountable for fatal and non-fatal customer injuries. Company owners may be expected to pay medical bills and other expenses, such as lost wages and long-term care. Depending on the nature of the accident, the injured party may also be eligible for non-compensatory damages.
Bounce house liability insurance provides coverage if a customer is injured on the inflatable. This policy pays the related expenses, including legal fees and settlement costs.
Insurance Coverage for Employee Injuries
While customer injuries receive the most attention, employee injuries are also a cause for concern. Bounce house employees often engage in physically demanding work when setting up and taking down bounce houses, putting them at risk of serious injuries.
They also might suffer injuries when walking into the building or transporting a bounce house. As with any place of employment, there are innumerable on-the-job hazards, and employers can be held liable for damages. Worker’s compensation insurance covers work-related injuries and illnesses, including medical bills and lost wages.
Insurance Coverage for Criminal Acts at the Bounce House
Bounce house rental company owners cannot personally vet every customer they serve. They cannot quickly remove uninvited guests from the bounce house once set up at the customer’s desired location.
This creates the risk of physical altercations occurring at bounce houses. There have been numerous reports of bounce house fights in recent years, and rental company owners may be responsible for injuries and property damage.
Adding alleged assault and battery coverage to a bounce house liability insurance policy protects in the event of a physical altercation when the inflatable is in use.
Bounce house owners should vet their employees before hiring them, but that does not mean that workers will not be responsible for criminal acts.
Even properly vetted employees might use their position in the company to groom or sexually assault minors. Alleged sexual abuse and molestation liability coverage mitigates the risk of financial loss if a legal claim is made against an employee, the owner, or the business.
This type of bounce house liability insurance even provides financial resources to recover from the reputational damage caused by a sexual assault claim.
Insurance Coverage for Vandalism, Theft, and Natural Disasters
Bounce house rental companies typically operate in brick-and-mortar establishments. If anything happens to the building or the equipment inside, the company may have to shut down until it is operational again.
Commercial property insurance pays to repair or replace the building and its contents when damaged by a covered event. Covered events include theft, vandalism, and damage caused by natural disasters.
Insurance Coverage for Equipment Damage
Company owners should have customers sign damage waivers when renting bounce houses. A waiver protects the business owner from financial losses due to negligence or misuse on the customer’s behalf.
Suppose the inflatable is damaged at the rental location or due to staff negligence. The company must pay for damages. For additional protection, owners can add equipment damage coverage to their bounce house liability insurance. This insurance policy pays to repair or replace damaged bounce houses and related equipment.
Insurance Coverage for Accidents When Transporting Bounce Houses
Many bounce house businesses transport inflatables to their customers’ locations, putting employees and owners at risk of motor vehicle accidents.
Commercial auto insurance is needed as part of a comprehensive bounce house policy. Company owners choose from insurance for company vehicles, personal automobiles, and rented cars or trucks.
Get a Free Quote for Bounce House Liability Insurance by Pro Insurance
These are typical coverage options when choosing a bounce house insurance policy. The seasoned agents at Pro Insurance Group are adept at customizing policies based on your risk profile.