Party rental business insurance costs vary significantly based on coverage type, making it essential to understand these differences for smart budgeting. Based on MoneyGeek's analysis, monthly premiums range from $37 for workers' compensation to $117 for a business owner's policy (BOP).
How Much Does Party Rental Business Insurance Cost?
Party rental business insurance can be found for as low as $37 per month, though your specific business details and coverage needs will determine your actual rate.
Discover cheap party rental business insurance below.
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Updated: August 19, 2025
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Key Takeaways
Party rental business insurance costs range from $37 to $117 monthly, depending on your coverage type.
Your party rental insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable party rental business insurance costs.
Average Party Rental Business Insurance Cost Overall
| BOP | $117 |
| General Liability | $80 |
| Professional Liability (E&O) | $55 |
| Workers' Comp | $37 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Party Rental Business Insurance Cost for General Liability Coverage by State
Your Party Rental business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $69 monthly (vs. the $80 national average), while New York costs $93 monthly.
| Alabama | $78 |
| Alaska | $71 |
| Arizona | $76 |
| Arkansas | $77 |
| California | $89 |
| Colorado | $79 |
| Connecticut | $87 |
| Delaware | $85 |
| Florida | $86 |
| Georgia | $81 |
| Hawaii | $83 |
| Idaho | $76 |
| Illinois | $88 |
| Indiana | $78 |
| Iowa | $76 |
| Kansas | $78 |
| Kentucky | $74 |
| Louisiana | $89 |
| Maine | $69 |
| Maryland | $76 |
| Massachusetts | $84 |
| Michigan | $76 |
| Minnesota | $75 |
| Mississippi | $80 |
| Missouri | $79 |
| Montana | $80 |
| Nebraska | $76 |
| Nevada | $91 |
| New Hampshire | $79 |
| New Jersey | $90 |
| New Mexico | $80 |
| New York | $93 |
| North Carolina | $69 |
| North Dakota | $69 |
| Ohio | $74 |
| Oklahoma | $74 |
| Oregon | $74 |
| Pennsylvania | $92 |
| Rhode Island | $88 |
| South Carolina | $82 |
| South Dakota | $75 |
| Tennessee | $78 |
| Texas | $81 |
| Utah | $76 |
| Vermont | $77 |
| Virginia | $73 |
| Washington | $91 |
| West Virginia | $84 |
| Wisconsin | $78 |
| Wyoming | $74 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Party Rental Business Insurance Cost for Workers’ Compensation Coverage by State
Your Party Rental business's cost for workers' compensation varies by state. Maine offers the lowest rates at $32 monthly, while New York charges the highest at $43 monthly. Our analysis reveals how state regulations and claim histories create these 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Party Rental Business Insurance Cost for Professional Liability Coverage by State
Like other types of coverage, your Party Rental business cost for professional liability varies by state. The national average is $55 monthly, with Maine offering the lowest rates at $47 for E&O insurance, and New York 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Party Rental Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for party rental businesses across states. Monthly premiums range from $100 in North Dakota to $139 in New York, showing how location affects insurance costs.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Party Rental Business Insurance Cost
Insurance costs for your party rental business vary based on several key factors that affect your premium rates. Understanding these elements helps with accurate budget planning. Learn about these factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to severe weather or with higher crime rates increases your risk profile, leading to substantial premium variations between states.
Safety record and claims history
Previous claims impact future premiums, often for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
The range of party rental services you provide affects your insurance costs. Offering inflatable bounce houses carries different risks than basic table and chair rentals. Companies providing mechanical rides or large tents face higher premiums than those renting only basic party supplies.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small party rental business earning $100,000 annually pays less than a large operation with $1 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive rental equipment requires higher coverage limits, increasing your premiums. A company with large tent installations, dance floors, and delivery trucks needs more coverage than one with basic chairs and tables.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Party Rental Business Insurance
Smart shopping and risk management strategies can lower your party rental business insurance costs significantly. Our proven tips below will help reduce your premiums now and create long-term savings for your business.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your party rental company needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and property damage claims. Commercial property coverage safeguards your rental inventory and equipment. Workers compensation becomes mandatory once you hire employees.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for identical coverage. Request quotes from at least three insurers to find the best rates. Consider working with an independent agent who can compare multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, property insurance and other coverages with one carrier typically costs less than splitting policies across different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means paying more out-of-pocket when filing claims, but can significantly lower your regular insurance expenses.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up over time. Paying your full premium annually often eliminates these extra charges and may qualify you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your business grows. Review your policies yearly to ensure coverage still matches your operations. Drop unnecessary coverage and adjust limits based on your current business size and activities.
Insurance for Party Rental Business Cost: Bottom Line
Party rental business insurance costs range from $37 to $117 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Party Rental Business Insurance Cost: FAQ
Business owners frequently ask about party rental company insurance costs, from basic liability to complete coverage options. Here are straightforward answers to common questions.
What is the cheapest type of party rental business insurance?
Workers' compensation costs $37 monthly, making it the most affordable option. However, most Party Rental businesses opt for general liability insurance ($80 monthly) to protect against customer injuries and property damage claims.
How much can I save by bundling my party rental business insurance policies?
Bundling multiple policies through a business owner's policy offers good value for party rental businesses. A BOP combines essential coverages while saving money compared to separate policies.
What factors make my party rental business insurance more expensive?
Geographic location, safety record, claims history and types of property services can make business insurance expensive..
Should I choose a $500 or $2,500 deductible for my party rental business insurance?
Higher deductibles lower your monthly premiums but require more out-of-pocket costs when filing claims. Choose based on your financial stability and claim frequency.
How much does workers' compensation cost for party rental businesses by state?
Party rental workers' compensation costs vary from $32 monthly in Maine to $43 monthly in New York. Rates fluctuate by location, helping business owners plan their insurance expenses.
Is business owner's policy (BOP) worth the extra cost for party rental companies?
BOP insurance costs $117 per month on average for party rental businesses. It bundles general liability, commercial property and business interruption coverage, offering better value than purchasing individual policies.
How often should I shop around for party rental business insurance quotes?
Review your party rental business insurance annually during renewal. Compare at least three insurers to find better rates, particularly if your business has grown or changed services.
How We Determined Party Rental Business Insurance Costs
We collected party rental business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- 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 per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small party rental businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.