Running a bounce house business can be a rewarding endeavor, whether you’re working children’s birthday parties or large community events. But like all things in life, it comes with risks. And accidents like injuries or property damage can quickly become costly without proper insurance. 

In this guide, we’ll explore why bounce house business insurance is a must-have, what it covers, how much it costs, and what to consider when buying a policy tailored to your needs. Let’s get right into it.

Why Your Bounce House Business Needs Insurance

While bounce houses may seem harmless, accidents are more common than you might think. From 2000 to 2021, there were 479 wind-related bounce house injuries and 28 deaths worldwide, according to research from the University of Georgia.

And that’s on top of an estimated 10,000 total bounce house-related ER visits that occur in the U.S. each year. 

But insurance is more than just a safety net — it’s often a requirement. 

Some states have regulations around bounce house use. And many venues, public parks, and corporate clients demand proof of insurance before allowing vendors to operate. Without it, your business may lose opportunities or, worse, face severe financial strain from lawsuits or medical claims. Even a minor incident, like a sprained ankle, could lead to litigation. 

Having the right policy not only ensures your business’s longevity but also offers peace of mind for you and your customers.

What Bounce House Insurance Covers

The right insurance package will typically include several layers of coverage. Each of these addresses a unique area of risk. 

General liability insurance is the foundation, and it protects against bodily injuries and property damage claims. For example, if a child gets injured while using one of your inflatables, general liability insurance covers the medical costs and legal fees if the parents sue. Similarly, it protects against claims for property damage, like if your equipment accidentally damages a venue’s property.

In addition to general liability, product liability insurance is another big one. Even though customers assume some risk when renting inflatables, you could still face legal claims if a defect in your equipment causes harm. This coverage protects your business from lawsuits related to faulty or damaged equipment.

If you hire employees, workers’ compensation insurance is typically required by law. This policy covers employee injuries sustained on the job, including medical bills and lost wages. 

For businesses with vehicles used for delivery, commercial auto insurance ensures that accidents involving your vehicles are covered. Some policies also include property insurance to protect your inflatables from theft or damage due to events like storms or vandalism.

For businesses with larger operations or higher risks, umbrella insurance offers additional protection beyond the limits of standard policies. This can be a difference-maker in cases where a major lawsuit exceeds your primary policy’s coverage limits.

How Much Does Bounce House Business Insurance Cost?

Insurance costs vary widely based on the size and scope of your business. A small, part-time operation might pay around $1,800 to $2,500 annually for basic general liability coverage. 

However, larger businesses with more extensive equipment and employees will incur higher premiums, especially if they require additional coverage types like workers’ compensation or commercial auto insurance.

Several factors influence the final premium, including:

• Location: Businesses in areas with higher legal claims or stricter regulations may face steeper premiums.  
• Operating schedule: Seasonal businesses may find temporary insurance more cost-effective, while year-round operations typically pay higher rates.
• Claims history: Companies with a history of accidents or claims will likely pay more, as insurers consider them higher risk.
• Business size and rental frequency: Larger operations with frequent rentals tend to pay more due to the increased likelihood of accidents.

Keep in mind that working with an insurance broker who understands the bounce house rental industry can help you find coverage tailored to your specific needs and budget.

Managing Risks to Reduce Insurance Costs

While insurance provides financial protection, risk management practices can help reduce the likelihood of accidents — and by extension, get your premium down. What’s not to like about that?

Some common practices include:

• Regular inspections of your inflatables for wear and tear.
• Ensuring proper anchoring (which is similar to tent anchoring).
• Following safety guidelines to minimize the risks of accidents.
• Training your staff to operate equipment safely.
• Setting clear rules for customers, such as limiting the number of children allowed at one time.

There’s another big one, too: using waivers and contracts adds an extra layer of protection. You should always have your customers sign liability waivers, which shifts the responsibility to them. This is particularly important for unsupervised rentals. 

Although waivers don’t eliminate liability entirely, they demonstrate that customers were informed of the risks, which can be helpful in legal disputes.

Is Temporary Insurance a Good Option?

For businesses operating on a part-time or seasonal basis, temporary insurance policies may offer a more affordable alternative to year-round coverage. Temporary insurance allows you to buy coverage only for the periods you need, such as weekends, summers, or other peak rental seasons. 

This flexibility can save money and ensure you’re protected when it matters most. However, if your business has consistent operations throughout the year, a full-year policy might be more cost-effective in the long run.

How to Purchase the Right Insurance Policy for Your Business

When it’s time to purchase insurance, start by evaluating your business’s needs. Consider how many inflatables you operate, where you conduct rentals, and whether you have employees or use vehicles. Comparing quotes from multiple insurers helps you find the best coverage at a competitive price.

Luna-Tolunay-1

"Shop around for a good broker you trust who works with a lot of businesses and markets so they can find the best price for you."

Luna Tolunay, CSEP

Fun Planners

Many insurance providers offer online tools to request quotes, making it easy to get a sense of costs and coverage options. Once you receive quotes, carefully review the policies to ensure they meet your needs. Look for policies that cover all potential liabilities, including property damage, bodily injury, and equipment failure. 

If you’re unsure, consult with an insurance broker who specializes in the inflatables industry to tailor the policy to your specific requirements.

And of course, make sure to regularly review your policy regularly as your business grows, as you may need to adjust coverage to match new challenges.

Secure Your Business with the Right Insurance

Bounce house business insurance is more than just a legal requirement — it’s a vital investment in the longevity and safety of your business. With the right coverage in place, you can focus on growing your business and providing joyful experiences for your clients without worrying about potential liabilities.

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