Bounce houses aren’t just for birthday parties. They’re a staple at many events, from corporate picnics to school fundraisers.
But with all the fun comes a set of unique risks — both to the users and to the business providing the inflatables.
In a previous blog, we covered bounce house insurance at a high level, but in this article we’re diving specifically into general liability insurance for bounce houses. So let’s get into what this coverage is, its key benefits, and how you can secure the right policy for your business.
What is General Liability Insurance for Bounce Houses?
General liability insurance is a type of business insurance designed to protect companies financially if they are found liable for damages or injuries to third parties (read: any event attendees or employees).
In the case of bounce house rentals, general liability insurance covers things like injuries that occur while people are using the equipment or damage to venue property.
Without this insurance, you may be responsible for medical bills, repair costs, and even legal fees. A single incident could lead to thousands of dollars in expenses, which poses a serious threat to your business’s financial health. Liability insurance gives you the peace of mind to focus on delivering memorable experiences, knowing that unexpected situations are financially covered.
3 Key Risks Covered by Bounce House Liability Insurance
So what are those unexpected situations that general bounce house liability covers? Here are three of the most common risks:
1. Injuries to Participants
Bounce houses are a favorite among children, but with enthusiastic jumping comes the possibility of injury. Sprained ankles, broken bones, and other injuries can happen, especially when safety guidelines aren’t followed. Liability insurance can help cover the medical costs associated with these injuries, and help protect your business’s reputation.
2. Damage to Client Property
Event spaces, lawns, and other areas where inflatables are set up can sometimes suffer damage from the equipment or the setup process. For example, the weight of a bounce house could tear grass, and the movement of the equipment could accidentally damage nearby structures or surfaces. Liability insurance covers the cost of repairing these damages, allowing you to maintain positive relationships with clients and avoid costly disputes.
3. Product Liability
Even with regular maintenance and inspections, a bounce house may have a defect from the manufacturer that isn’t immediately visible. If a product defect causes an injury, your business could be held liable, even if the problem was beyond your control. General liability insurance can cover these incidents, providing protection if a malfunction leads to an injury or property damage.
Additional Insurance Options to Consider
While general liability insurance covers a lot, there are additional types of insurance to consider for a comprehensive risk management plan:
- Commercial auto insurance: If you’re transporting bounce houses and other rental items to event sites, you’ll need commercial auto insurance to cover potential vehicle-related accidents or damages en route.
- Property insurance: This covers your business’s assets, such as bounce houses, from events like theft or damage while they’re in storage. With the high cost of inflatables, property insurance ensures you won’t face a loss if your equipment is damaged or stolen outside of rental use.
- Umbrella insurance: This adds an extra layer of coverage on top of your general liability policy, particularly useful for large events or those that present higher risks. Umbrella policies can help cover costs beyond your primary liability limits, adding financial protection for your business.
If you get general liability insurance, make sure to read the policy and see if any of the risks above are covered, and in what capacity. From there you can determine whether additional insurance is warranted.
💼 Learn all about different types of insurance
How to Choose the Right Insurance Provider
Choosing the right provider is as important as choosing the right policy. The wrong provider might offer poor customer service, slow claims processing, or even deny coverage for essential situations.
When looking for a provider, make industry expertise a priority. Providers that specialize in bounce house or event rental insurance will have a better understanding of your needs. They can offer targeted advice on coverage types and limits.
You should also be clear on what’s covered — and what isn’t. Make sure bounce house-specific risks are part of your policy, and inquire about deductibles and potential extra fees.
Finally, before signing on any dotted lines, check reviews from other event professionals. You can find plenty of insights in Facebook communities like Party Rental Knowledge Group and Bounce House Business Success Group. When in doubt, you can always make your own post to ask advice on what other people use and if they like it. Current users can offer detailed info on service quality, claims process, and overall reliability.
Tips for Reducing Insurance Costs
On average, party rental businesses in the U.S. spend between $500 and $1,100 annually for $1 million in general liability coverage.
But insurance costs can quickly add up, especially for a small business. Here are some strategies to help keep your premiums more affordable:
- Staff training: By investing in training for your team, you reduce the likelihood of accidents and lower your insurance risk profile, which may qualify you for lower premiums.
- Routine equipment inspections: Regular checks can help prevent issues before they arise, reducing the risk of equipment-related injuries or damage.
- Bundle coverage: Many providers offer discounted rates if you combine multiple types of insurance (like general liability and commercial auto), helping you save while getting comprehensive protection.
The Cost of Not Having General Liability Insurance
For those just starting out, skipping insurance may seem like an easy way to cut costs. However, the risks of not having liability insurance can be financially devastating. Medical bills, legal fees, and damages can quickly add up to tens of thousands of dollars, especially in injury cases involving children. Businesses without insurance may face financial ruin from a single incident.
Beyond the financial costs, the absence of insurance could harm your reputation. Clients who experience issues may feel that your business isn’t taking safety seriously, which can impact word-of-mouth referrals and repeat bookings. Liability insurance is an investment in both the financial security and long-term reputation of your business.
With comprehensive coverage in place, you can focus on creating safe, enjoyable experiences for your clients, knowing that your business is protected from the unexpected. Get insured, and let the fun continue — worry-free!
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