Best Party Rental Business Insurance

The Hartford leads our rankings for party rental business insurance with a MoneyGeek score of 4.78 out of 5. With top marks for competitive rates, quality customer service and comprehensive coverage options, it's helpful for party rental companies and event rental businesses looking for reliable financial protection. 

We also recommend comparing quotes from NEXT and biBerk. Each provider offers unique advantages that might better suit your party equipment rental operation's specific needs and budget.

Note: We based all scores on a party rental business with two employees across professional liability, general liability, workers' comp and BOP policies.

The Hartford offers party rental business insurance at $62 monthly ($739 annually), ranking first for professional liability. For party rental companies seeking lower rates, NEXT Insurance provides cheaper general liability at $66 monthly and workers' comp at $17 monthly, while biBerk offers the most affordable BOP at $91 monthly for event rental businesses.

In general, party rental business insurance costs are the following for the four most popular coverage types:

• General Liability: $80 on average per month, ranging from $69 to $93, depending on the state
• Workers' Comp: $37 on average per month, ranging from $32 to $43, depending on the state
• Professional Liability (E&O): $55 on average per month, ranging from $47 to $64, depending on the state
• BOP Insurance: $117 on average per month, ranging from $100 to $139, depending on the state

Party rental businesses face unique risks from equipment damage, customer injuries and delivery accidents that require comprehensive protection. 

Understanding the required coverage for party rental business owners helps you meet legal mandates and client expectations, while optional policies protect against specific industry risks.

• Workers' Compensation Insurance: Your state requires workers' comp once you hire employees to cover medical bills and lost wages when crew members injure themselves loading heavy tents or delivering tables. Most party rental companies need coverage limits based on payroll, with premiums around $17 to $35 monthly for small operations.
• Commercial Auto Insurance: State law mandates commercial auto coverage for delivery trucks and vans transporting rental equipment to venues. This protects your business when drivers cause accidents during deliveries, covering liability and vehicle damage. Standard limits start at $500,000 per accident for most party rental operations.
• General Liability Insurance: Venues and event planners require proof of general liability before allowing your party rental business to deliver equipment. It covers medical costs when guests injure themselves on bounce houses or trip over dance floors, plus property damage from tent stakes or delivery accidents. Most party rental companies carry $1 million to $2 million limits.
• Inland Marine Insurance: Your tents, tables, audiovisual equipment and inflatables need protection, while in transit and at event locations. Inland marine coverage replaces stolen photo booths from venues or wind-damaged tents at outdoor weddings. Party equipment rental businesses should insure inventory at full replacement cost to avoid out-of-pocket losses.
• Business Owner's Policy (BOP): A BOP bundles general liability and commercial property coverage at a lower cost than buying them separately. It provides your warehouse inventory financial protection from fire or theft while covering customer injuries. Event rental service providers save around $200 to $300 annually by choosing a BOP over individual policies.
• Commercial Umbrella Insurance: Serious accidents involving inflatables or mechanical equipment can exceed your general liability limits. Umbrella coverage adds $1 million to $5 million in extra protection when a bounce house injury results in a catastrophic lawsuit. Party rental business owners renting high-risk items should carry umbrella insurance.
• Professional Liability Insurance (E&O): Event rental companies providing setup services or consulting on equipment selection need E&O coverage. This protects your business when clients claim poor advice led to event failures or that your setup crew caused problems. Coverage limits of $1 million work for most party rental operations.
• Cyber Liability Insurance: Credit card breaches and stolen customer data create expensive notification requirements and regulatory fines. Cyber coverage helps party rental businesses cover breach response costs, credit monitoring for affected customers and legal expenses. Most providers offer affordable $25,000 to $50,000 policies.

Understanding how to get business insurance for your business means comparing rates, coverage options and provider reputations to find the right protection at the best price.

The Hartford delivers the best value for party rental business insurance at $62 monthly, earning a 4.78 MoneyGeek score for competitive rates and reliable service. 

Event rental companies need workers' compensation, commercial auto, general liability and inland marine coverage to protect equipment and operations. Compare quotes from The Hartford, NEXT and biBerk to find the right coverage for your party equipment rental business.

We answer frequently asked questions about party rental company insurance:

We selected the best business insurer for party rental companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue