Bounce house businesses face unique risks from customer injuries, equipment damage and liability exposure at events. Below we've summarized essential insurance coverage for bounce house operations and recommended amounts to protect your business.
What Insurance Do You Need For a Bounce House Business?
The types of insurance a bounce house business needs most include general liability, commercial auto, workers' comp and tools and equipment coverage.
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Updated: November 13, 2025
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Bounce Houses Business Insurance Requirements: Key Takeaways
General liability insurance is the most critical coverage for bounce house businesses due to high injury risk from children using inflatables. (Read More)
Bounce house businesses commonly require workers' compensation, general liability, commercial auto and special event insurance mandated by law or contract. (Read More)
Optional coverage bounce house businesses should consider includes tools and equipment insurance, professional liability and commercial property insurance.
To ensure compliance, get certificates of insurance from your insurer, verify accuracy, add venues as additional insured and maintain continuous coverage. (Read More)
What Insurance Types Are Needed For a Bounce House Business?
General Liability Insurance for Bounce House Businesses
General liability insurance covers third-party claims for bodily injury and property damage from your bounce house operations. This protects your business when children get injured using inflatables, equipment damages a client's property or accidents occur during setup. We recommend $1 to $2 million per occurrence with $2 to $3 million aggregate coverage for most bounce house companies.
Real-Life Coverage Scenario: A bounce house deflated suddenly when the blower cord unplugged. Five children fell from the collapsing structure. One child broke an arm requiring surgery ($12,000), two suffered concussions ($8,500 in emergency care) and the family filed a lawsuit seeking $75,000 in damages. General liability insurance covered all $95,500 in medical expenses and legal defense costs.
Tools and Equipment Insurance for Bounce House Businesses
A $1 million combined single limit with comprehensive and collision coverage protects delivery vehicles, trailers and transported equipment. Commercial auto insurance covers vehicle damage, medical expenses from accidents and damage you cause to others when transporting inflatables to customer locations.
Real-Life Coverage Scenario: A driver lost control on wet roads while transporting three bounce houses, colliding with two parked vehicles. The accident caused $22,000 in damage to other vehicles, $18,000 in trailer repairs, $14,000 in medical bills, $8,500 in damaged inflatables and $6,000 in towing costs. Commercial auto insurance covered $67,500, with just a $1,000 deductible.
Tools and Equipment Insurance for Bounce House Businesses
Equipment insurance (inland marine) covers bounce houses, blowers, generators and accessories when damaged, stolen or destroyed at events, during transport or in storage. Most bounce house businesses need $25,000 to $75,000 in coverage depending on inventory size.
Real-Life Coverage Scenario: Thieves stole four commercial bounce houses ($32,000), three industrial blowers ($3,600), two generators ($3,600) and anchoring equipment ($2,500) from a storage unit. The $41,700 loss forced cancellation of five events, losing another $3,800 in revenue. Equipment insurance reimbursed the full replacement cost within two weeks, allowing the owner to purchase new inventory and resume bookings.
Workers' Compensation Insurance for Bounce House Businesses
Required by law in most states once you hire employees. Workers' compensation pays medical costs and lost wages for work-related injuries like back strains from lifting heavy inflatables, heat exhaustion during summer events or vehicle accidents during deliveries.
Real-Life Coverage Scenario: An employee severely strained his back lifting a 300-pound obstacle course inflatable. He needed emergency surgery, physical therapy and three months off work, totaling $38,000 in medical bills and $11,000 in lost wages. A coworker suffered heat stroke the same day, requiring $7,200 in hospitalization. Workers' compensation covered all $56,200 in costs.
Professional Liability Insurance for Bounce House Businesses
Professional liability insurance protects bounce house businesses from negligence claims, including failure to properly anchor equipment, inadequate safety procedures or faulty setup instructions leading to injuries. We recommend $1 million per claim with $1 million aggregate for most operators.
Real-Life Coverage Scenario: An operator failed to use sufficient anchoring at an outdoor festival. When 30 mph winds hit, the inflatable lifted 15 feet with three children inside. One child fractured a leg ($9,500), another injured a shoulder ($6,800), and families sued for $180,000 in negligence. The event organizer added a $25,000 lawsuit for their liability exposure. Professional liability insurance covered all $221,300 in legal defense and settlements.
Commercial Property Insurance for Bounce House Businesses
Commercial property insurance covers your warehouse or storage facility, protecting stored inventory, equipment and supplies from fires, storms, theft or vandalism. Coverage should equal the replacement cost of your building (if owned) and contents, typically $100,000 to $500,000 based on facility size and inventory value.
Real-Life Coverage Scenario: A fire from an adjacent unit spread to a bounce house storage facility, destroying 12 inflatables ($96,000), eight blowers ($9,600), tools ($4,500), office equipment ($3,200) and causing $47,000 in building damage. The owner turned away customers for six weeks, losing $18,000 in revenue. Commercial property insurance covered $160,300 in damage, plus business interruption coverage compensated for lost income.
Bounce House Business Insurance Requirements
The table below summarizes insurance requirements for bounce house companies by state law and contracts. Requirements vary by state, client type and contract terms, so verify specific coverage amounts with your local regulations and customers.
Workers' Compensation Insurance | Required by law in most states once you hire your first employee. Penalties include fines up to $10,000 per employee, criminal charges, license suspension and personal liability for all injury costs. | Minimum coverage is set by your state. Most states require unlimited medical expenses and wage replacement of 60% to 80% of average weekly wages. |
Commercial Auto Insurance | Required by law in 49 states for business-owned vehicles transporting equipment. Personal auto policies exclude commercial use, and operating without coverage results in fines up to $5,000 and personal liability for accidents. | State minimums range from 25/50/10 to 30/60/25 split limits. Most bounce house businesses carry $1 million combined single limit for better protection. |
General Liability Insurance | Event venues, schools, parks departments and property owners require proof of coverage before allowing bounce house operations. Most clients need certificate of insurance 7 to 14 days before events or they'll cancel your booking. | Industry standard is $1 million per occurrence and $2 million aggregate. High-value venues like hotels and corporate events may require $3 to $5 million total coverage. |
Special Event Insurance | Parks departments, municipalities and public venues require short-term event-specific coverage for bounce house operations at festivals, community events and public spaces. Event permits won't be issued without proof of this coverage, and applications typically require submission 14 to 30 days before the event date. | Most municipalities and parks require $1 million per occurrence with $2 million aggregate minimum. Large public events or festivals with high attendance may require $2 to $5 million in coverage per event. |
Commercial Property Insurance | Landlords require coverage for leased warehouse space, and lenders mandate it for financed properties. Lease agreements specify coverage amounts and require proof before move-in plus annual renewals. | Coverage equals replacement cost of building and contents, typically $100,000 to $500,000 based on facility size. Landlords may require 80% to 100% of building replacement cost. |
Large venues, corporate clients, hotels and municipalities require umbrella coverage for high-attendance events. This appears in contracts for festivals, corporate gatherings or events with 200+ attendees. | High-value clients require $3 to $5 million total coverage. Premium venues or large public events may mandate $5 to $10 million in umbrella coverage beyond base liability. | |
How To Ensure Bounce House Business Insurance Requirements Are Met
Below is a step-by-step guide for proving coverage and maintaining compliance after purchasing policies. This applies to state regulations, client contracts, venue requirements and licensing.
- 1Request Certificates of Insurance (COI) from your insurer
After purchasing bounce house insurance, request a Certificate of Insurance from each insurer immediately. Most providers deliver COIs by email within minutes to hours, and you'll need these before booking events at parks, schools or commercial venues.
- 2Review each COI for accuracy before submitting
Check that your business name, policy numbers, coverage amounts, effective dates and expiration dates are correct on each certificate. Errors or outdated information on COIs cause rejected permit applications and denied event bookings, so catch mistakes before submitting to venues or clients.
- 3Add venues as "additional insured" when required
Parks, schools and event venues require adding them as additional insured on your general liability policy. Contact your insurer to add this endorsement (typically $25 to $50 per certificate) and get an updated COI showing the venue listed, which venues need 7 to 14 days before your event.
- 4Submit COIs to required parties before deadlines
Provide a certificate to event venues before setup dates, to landlords before signing leases, to municipalities when applying for licenses and to commercial clients before contract signing. Parks departments require COI submission 14 to 30 days before events, while private venues may accept them 48 to 72 hours in advance.
- 5Maintain coverage and update documentation proactively
Set reminders 30 to 60 days before policy renewals to get updated certificates, and send new COIs to active clients and regular venues before your policies expire. Bounce house businesses lose summer bookings when coverage lapses, so continuous proof of insurance protects your busiest revenue periods.
Get Business Insurance You Need For Your Bounce House Business
You can get matched to bounce house business insurers using our tool below. Compare quotes from multiple providers and research coverage limits for equipment damage, liability at events and seasonal operations. Understanding these factors helps you find coverage that fits your bounce house business needs.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.