Party Rental Business Insurance Cost (2025 Rates)

Updated: November 12, 2025

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Key Takeaways

Party rental business insurance costs range from $382 to $1,671 annually on average, depending on coverage type, state and sub-industry.

Your party rental insurance premiums depend on location, claims history, services you provide and your employee count.

Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable party rental business insurance costs.

How Much Is Insurance for a Party Rental Business?

We found average business insurance costs for party rental companies for commonly needed coverage are as follows:

Complete Party Rental Insurance Bundle: $209 monthly or $2,510 yearly for a combined BOP, workers' comp and professional liability coverage.
General Liability Coverage: $80 monthly or $957 annually
Workers' Compensation Insurance: $37 per month or $443 per year
Professional Liability Coverage: $55 per month or $660 annually
Business Owner's Policy (BOP) Insurance: $117 monthly or $1,407 annually


BOP	$117	$1,407
General Liability	$80	$957
Professional Liability (E&O)	$55	$660
Workers' Comp	$37	$443

Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.

Get Matched to Cheap Party Rental Business Insurers

Select your industry and state to get a customized quote.

Industry

State

Party Rental Business Insurance Cost of General Liability Coverage by State

Your party rental business cost for general liability insurance depends on where you operate. Maine offers the best value at $69 monthly compared to the $80 national average, while New York costs $93 monthly.


Alabama	$78	$936
Alaska	$71	$857
Arizona	$76	$908
Arkansas	$77	$919
California	$89	$1,068
Colorado	$79	$950
Connecticut	$87	$1,041
Delaware	$85	$1,025
Florida	$86	$1,038
Georgia	$81	$973
Hawaii	$83	$1,000
Idaho	$76	$909
Illinois	$88	$1,052
Indiana	$78	$935
Iowa	$76	$912
Kansas	$78	$931
Kentucky	$74	$890
Louisiana	$89	$1,071
Maine	$69	$831
Maryland	$76	$914
Massachusetts	$84	$1,006
Michigan	$76	$908
Minnesota	$75	$899
Mississippi	$80	$963
Missouri	$79	$944
Montana	$80	$954
Nebraska	$76	$907
Nevada	$91	$1,087
New Hampshire	$79	$953
New Jersey	$90	$1,086
New Mexico	$80	$964
New York	$93	$1,115
North Carolina	$69	$831
North Dakota	$69	$833
Ohio	$74	$889
Oklahoma	$74	$892
Oregon	$74	$890
Pennsylvania	$92	$1,106
Rhode Island	$88	$1,053
South Carolina	$82	$987
South Dakota	$75	$896
Tennessee	$78	$935
Texas	$81	$967
Utah	$76	$912
Vermont	$77	$920
Virginia	$73	$873
Washington	$91	$1,090
West Virginia	$84	$1,006
Wisconsin	$78	$941
Wyoming	$74	$886

Note: We based these general liability rates on party rental businesses with two employees across different states. Your rates will vary based on your location, claims history and the services you provide.

Party Rental Business Insurance Cost of Workers’ Compensation Coverage by State

The cost of workers' compensation insurance for your business differs across states. Maine has the most affordable rates at $31 monthly, while New York costs $43 monthly. State regulations and claim histories drive these pricing differences.


Alabama	$36
Alaska	$34
Arizona	$35
Arkansas	$35
California	$41
Colorado	$36
Connecticut	$40
Delaware	$40
Florida	$40
Georgia	$37
Hawaii	$39
Idaho	$35
Illinois	$40
Indiana	$36
Iowa	$35
Kansas	$36
Kentucky	$34
Louisiana	$42
Maine	$32
Maryland	$35
Massachusetts	$39
Michigan	$35
Minnesota	$35
Mississippi	$38
Missouri	$36
Montana	$37
Nebraska	$34
Nevada	$42
New Hampshire	$37
New Jersey	$41
New Mexico	$37
New York	$43
North Carolina	$32
Oklahoma	$34
Oregon	$34
Pennsylvania	$42
Rhode Island	$41
South Carolina	$38
South Dakota	$35
Tennessee	$36
Texas	$37
Utah	$35
Vermont	$35
Virginia	$33
West Virginia	$39
Wisconsin	$36

Note: We based these workers' comp rates on party rental businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.

Party Rental Business Insurance Cost of Professional Liability Coverage by State

Your professional liability cost varies by state. Nationwide, this coverage averages $55 monthly. Maine offers the most affordable rates at $47 monthly, while New York has the highest at $64 monthly.


Alabama	$55
Alaska	$50
Arizona	$52
Arkansas	$53
California	$61
Colorado	$54
Connecticut	$61
Delaware	$60
Florida	$60
Georgia	$57
Hawaii	$55
Idaho	$51
Illinois	$62
Indiana	$54
Iowa	$52
Kansas	$54
Kentucky	$51
Louisiana	$61
Maine	$47
Maryland	$52
Massachusetts	$58
Michigan	$53
Minnesota	$52
Mississippi	$55
Missouri	$54
Montana	$55
Nebraska	$53
Nevada	$62
New Hampshire	$54
New Jersey	$62
New Mexico	$55
New York	$64
North Carolina	$48
North Dakota	$48
Ohio	$51
Oklahoma	$52
Oregon	$51
Pennsylvania	$63
Rhode Island	$61
South Carolina	$56
South Dakota	$51
Tennessee	$53
Texas	$55
Utah	$52
Vermont	$53
Virginia	$50
Washington	$63
West Virginia	$58
Wisconsin	$54
Wyoming	$51

Note: We based these professional liability rates on party rental businesses with two employees across different states. Your actual rates will depend on your services offered and location.

Party Rental Business Insurance Cost of BOP Coverage by State

Party rental business insurance costs vary most by state when it comes to business owner's policy coverage. BOP insurance cost ranges from $100 in North Dakota to $139 in New York for the same coverage.


Alabama	$112
Alaska	$103
Arizona	$111
Arkansas	$112
California	$129
Colorado	$118
Connecticut	$127
Delaware	$125
Florida	$126
Georgia	$121
Hawaii	$125
Idaho	$112
Illinois	$129
Indiana	$113
Iowa	$114
Kansas	$116
Kentucky	$112
Louisiana	$132
Maine	$103
Maryland	$112
Massachusetts	$123
Michigan	$111
Minnesota	$110
Mississippi	$115
Missouri	$115
Montana	$115
Nebraska	$110
Nevada	$133
New Hampshire	$116
New Jersey	$136
New Mexico	$119
New York	$139
North Carolina	$102
North Dakota	$100
Ohio	$109
Oklahoma	$111
Oregon	$110
Pennsylvania	$135
Rhode Island	$128
South Carolina	$121
South Dakota	$108
Tennessee	$117
Texas	$119
Utah	$113
Vermont	$111
Virginia	$109
Washington	$131
West Virginia	$123
Wisconsin	$115
Wyoming	$110

Note: We based these BOP rates on party rental businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.

Party Rental Business Insurance Cost by Provider

Party Rental business insurance costs vary by provider, ranging from $62 to $86 monthly. These price differences reflect each insurer's market focus and risk assessment strategies, which shift based on profitability and coverage expansion opportunities.


Chubb	$86	$1,036
Coverdash	$69	$830
Hiscox	$76	$914
NEXT Insurance	$64	$767
Nationwide	$80	$957
Progressive Commercial	$71	$852
Simply Business	$83	$993
The Hartford	$62	$739
Thimble	$76	$909
biBERK	$64	$770

Party Rental Business Insurance Cost Factors

Several factors affect your Party Rental business insurance costs when insurers calculate your policy rates:

Geographic location

Weather patterns and event seasons in your area drive both demand and risk levels. Businesses in regions with frequent wind, rain or extreme heat deal with equipment damage and cancellations that impact insurance calculations.

Safety record and claims history

Tent failures generate serious liability claims that linger for years. Any incidents involving guest injuries or equipment malfunctions will shadow your renewal quotes and potentially limit coverage options.

Types of events serviced

Backyard birthday parties carry manageable exposure compared to large corporate festivals. Companies providing equipment for public events with hundreds of attendees have substantially greater liability than those serving small private gatherings.

Employee count and payroll

Delivery crews lifting tents, tables and inflatables have constant strain and injury risk. Adding workers means covering their wages through workers' comp, with premiums scaling based on total payroll and the physical nature of setup work.

Business size and revenue

Event volume and gross sales indicate your overall exposure to potential losses. A weekend-only operation clearing $45,000 operates at vastly different risk levels than established companies booking $280,000 in annual rentals.

Coverage limits

Venues and event planners frequently require proof of substantial insurance before allowing rental equipment onsite. Meeting those $2 million minimums costs considerably more monthly than basic $500,000 policies covering smaller residential events.

Equipment values

Tents, inflatables, sound systems and decorative pieces represent capital tied up in rental stock. Operations maintaining large inventories with high-value items need robust property coverage compared to businesses with modest equipment collections.

Credit score and financial stability

Financial track records influence underwriting decisions throughout the insurance market. Strong credit often translates to premium reductions, while struggling credit can result in surcharges that materially impact your event pricing competitiveness.

How to Get Cheap Party Rental Business Insurance

Cutting your party rental business insurance costs takes planning and smart decision-making — and our step-by-step guide walks you through it. With the right approach, you can secure the best cheap business insurance for your party rental company while strengthening your risk profile for long-term savings.

1
Choose the right coverage types for your business
Party rental companies need general liability for injuries from bounce houses and inflatable slides, product liability for equipment failures causing harm and commercial property coverage for tents, tables, chairs and entertainment equipment in your warehouse.

Add commercial auto for delivery vehicles, bailee's coverage for items temporarily in customer possession, inland marine for equipment in transit, and workers' compensation if you have set up crews.
2
Shop multiple insurance companies
Party rental premiums vary widely based on whether you offer inflatables, mechanical bulls, or just tables and chairs.

High-activity equipment creates a higher injury risk. Event rental insurers understand setup liability, equipment maintenance requirements and seasonal revenue patterns better than general carriers.
3
Bundle your coverage types
Combining general liability, property and commercial auto saves 17% to 25% compared to purchasing separately. Many insurers offer party rental packages that include equipment in transit and bailee's coverage at reduced bundle rates.
4
Increase your deductibles
Higher property deductibles of $2,500 to $5,000 can reduce premiums by 20% to 28%, but consider your total inventory replacement cost. Keep general liability deductibles low since injury claims from inflatables, tent collapses or equipment malfunctions can escalate to six-figure lawsuits quickly.
5
Pay annually instead of monthly
Monthly payment plans add 5% to 10% in installment fees, which, on a $6,000 policy, costs $300 to $600 extra annually. Paying annually eliminates these charges and earns 6% to 9% discounts from event rental carriers.
6
Review and adjust your coverage annually
Review your policy whenever you add high-risk items like water slides or obstacle courses, expand your fleet of delivery trucks or invest in expensive equipment like photo booths or AV systems.

If you've implemented safety inspection protocols, staff training programs, or installed GPS tracking on equipment, these improvements can qualify for premium discounts.

Insurance for Party Rental Business Cost: Bottom Line

Party rental business insurance costs between $32 and $139 per month, though your exact rate depends on factors like location, business size and claims history. You can lower your premium by comparing quotes from several insurers, bundling policies, selecting higher deductibles and choosing to pay annually rather than monthly.

Party Rental Insurance Cost: FAQ

Party rental business owners commonly ask about insurance costs. We answered the most frequent questions below:

What is the cheapest type of party rental business insurance?

Workers' compensation costs just $37 monthly but only covers employee injuries. Most Party Rental businesses require general liability coverage ($80 monthly) to protect against customer injuries and property damage lawsuits.

How much does party rental business insurance cost in expensive states like California and New York?

These states charge higher premiums. California charges $89 monthly for general liability compared to the $80 national average, while BOP costs $129 monthly against the $117 average. New York runs $93 and $139, respectively.

How much can I save by bundling my party rental business insurance policies?

Bundling saves money over buying separate policies. Most insurers offer discounts when you combine general liability, commercial auto coverage and commercial property insurance with one insurer.

What factors make my party rental business insurance more expensive?

Several things drive up your costs, including risky venues, past claims, expensive equipment, bigger crews, bounce houses and inflatables and bad credit.

Should I choose a $500 or $2,500 deductible for my party rental business insurance?

A $2,500 deductible lowers your monthly bill but means paying more when you file a claim. Choose based on your cash reserves and how often you expect to file claims.

How much does workers' compensation cost for party rental businesses by state?

Costs range from $32 monthly in Maine to $43 in New York.

Is business owner's policy (BOP) worth the extra cost for party rental companies?

BOP runs $117 monthly and combines general liability, commercial property and business interruption coverage. You'll save money over buying each policy separately.

How often should I shop around for party rental business insurance quotes?

Compare rates each year at renewal. Getting quotes from several companies often reveals better rates, particularly if you've expanded your inventory or hired employees.

How We Determined Party Rental Business Insurance Costs

We analyzed insurance quotes for party rental businesses from various insurers around the country. Every quote used the same business information to maintain consistency:

Two employees (three people total, including the owner)
$150,000 annual payroll
$300,000 annual revenue
Already insured status
$1 million per occurrence and $2 million total annual coverage for all policies, except for BOP, which also includes $5,000 in business property coverage

We used a typical small party rental business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the party rental industry.

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.

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