Insurance for Bike Rental Business: Cost & Quotes From $11/mo

The summer is just a few months away. Soon enough, lakes, rivers, piers, and beaches will be open. We all know that not all have the budget for boat rental. Some are also not very fond of being in deep waters. That’s why bike rentals are another option for quality time with family and friends. 

Consider getting bike rental insurance. You can use this to cover the medical treatment of customers who accidentally rode a defective bike. This is also helpful if your bikes get lost while they’re in the custody of the bike shop. The damage or destruction of a space you’re renting or leasing is covered too. 

What is Bike Rental Insurance?

Bike rental insurance is a bundled insurance package made up of general liability, commercial property, inland marine, tools and equipment, cyber liability, and other business insurance policies. You’re eligible if your business is a:

  • City bike rental

  • Premium bike rental

  • Bike leasing business

  • Lake and beach bike rental business

  • E-bike rental business

Commercial Bike Rental Liability Insurance

Commercial bike rental liability insurance pertains to general liability, professional liability, and product liability policies. We will first discuss how each function before proceeding to other policies available. 

General Liability Insurance for Bike Rental Shops

CoverWallet  NEXT (Best) Thimble 
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000
Waiver of subrogation included? Yes No Included
Hired/non-owned auto liability coverage included? Yes No Excluded
Food-borne illness endorsement included? No  Yes Yes
Can you get a certificate of insurance online? Yes Yes Yes
Name additional insureds? Yes Yes Yes
Deductible $0 $0 $0

General liability insurance is the base coverage included in the tailored insurance for bike rental business. A renter can sustain injuries while using your bike. They might also injure others. Either way, you can be held liable. General liability insurance takes care of this exposure. Use the table above to see which insurance company offers the best general liability insurance. 

What Exposures Does Your Bike Rental Business’s General Liability Insurance Cover?

Your bike rental business’s general liability insurance takes care of liabilities for bodily injuries, property damage, copyright infringement, slander, and libel. This insurance will cover the cost for medical treatment, reimbursement for property damage, legal defense, and court judgments. 

In Which Situations Can You Use General Liability Insurance?

Common undesirable incidents accompanying a bike rental business that general liability insurance can cover are:

  • Your bike’s brakes and wheels are poorly maintained. As a result, a customer sustained injuries

  • A person holds your business accountable after getting injured by a customer riding your bike

  • Your bike’s ad used copyrighted elements from a website, a social media page, or any other source

What Are the Usual Limits of General Liability Insurance for Bike Rentals?

The general liability insurance for bike rental businesses have a $300,000-$1 million per occurrence and $1 million-$2 million aggregate limit. The actual amount of coverage you receive will depend on how many rides you cater per day and the number of bikes you have.

Professional Liability Insurance for Bike Rental Businesses

CoverWallet (Best) NEXT  Thimble 
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000
Name additional insureds? Yes Yes Yes
Waiver of subrogation included? Yes No Yes
Deductible  $500 $500 $500

Professional liability insurance might be also helpful for your bike rental business. This grants protection if a customer or any other third party accuses you of failing to maintain the bikes well, hiding the fact that some bikes for rent are in bad condition, or overcharging rental fees. Use the table above to see which insurance company offers the best professional liability insurance. 

Product Liability Insurance for Bike Rentals 

Product liability insurance can also grant coverage if a customer sustains bodily injuries or property damage because of your bike. Insurance companies automatically include this as an add-on to general liability insurance. Product liability insurance provides $1 million-$2 million you can use to cover settlements, defense costs, court judgments, and product recall expenses. 

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Commercial Property Insurance for Bike Rentals

CoverWallet NEXT (Best) Thimble
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000
Outdoor signs Excluded $2,500 Excluded
Accounts receivable  Excluded Excluded $5,000/$10,000
Money and securities Excluded $2,500 $1,000
Lock and keys  Excluded $2,500 Excluded
Business interruption floater Excluded Included Included
Equipment breakdown floater Excluded Included Excluded
Inland marine insurance floater Excluded Excluded $10,000
Employee dishonesty floater Excluded $5,000 $2,500

Your bike rental shop’s storefront is a costly and vital asset. Without this, your business can’t operate well. And so, consider purchasing commercial property insurance to cover repair or rebuilding expenses quickly in case your storefront is damaged or destroyed. Use the table above to see which insurance company offers the best commercial property insurance for bike rentals. 

What Perils Does Commercial Property Insurance for Bike Rentals Cover?

Commercial property insurance will reimburse the actual cash value or replacement cost of a rented, leased, or owned commercial building that got damaged or destroyed because of:

  • Fire

  • Theft

  • Vandalism

  • Civil commotion

  • Riot

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Weather

  • Falling objects

  • Impact

  • Aircraft

  • Vehicle

  • Sprinkler leakage

Are My Rental Bikes Also Covered?

Commercial property insurance will also cover the damage or destruction of your rental bikes as caused by the exposures we mentioned above. You’ll get a reimbursement based on the overall estimated value of the bikes. Note that coverage will only apply if damage or destruction occurred within the premises of your business. 

Business Owner’s Policy for Bike Rentals

CoverWallet NEXT (Best) Thimble 
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $260,000 $25,000/$500,000
Optional policies can be added? Yes Yes Yes
Name additional insureds for free? Yes Yes Yes
BOP discount? Yes Yes Yes

A Business Owner’s Policy (BOP) is a packaged policy that combines commercial property and general liability insurance for small businesses. Bike rental businesses can save money by taking out a BOP because it typically offers a discounted premium compared to purchasing separate policies for your business property and liability coverage.

Furthermore, BOPs often include additional coverages such as business interruption and employee dishonesty coverage which can provide extra protection for your business. Use the table above to see which insurance company offers the best business owner’s policy for bike rentals.

Tools and Equipment Insurance for Bike Rental Businesses

NEXT (Best) Thimble
Aggregate limit $3,000/$10,000 $2,500/$5,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000
Miscellaneous equipment also covered? $5,000/$10,000 No
Offered as an endorsement to general liability insurance? Yes Yes
Deductible $500 $500

Tools and equipment insurance is another type of bycicle rental business insurance that covers the rental bikes you own. The coverage of this insurance applies when:

  • The customer loses the bike of your rental shop because of theft

  • Your customer is careless and damages the bike 

  • A gear, wheel, or bearing suddenly breaks down while a customer is using the bike 

  • Upset and impact inflicted some damage to your rental bike

How Much Coverage Can Your Bike Rental Business Get From Tools and Equipment Insurance?

Bike rental shops can avail tools and equipment insurance with a $10,000-$25,000 limit or one that grants a reimbursement based on the total cost of replacing the covered bikes in question. 

Cyber Liability Insurance for Bike Rental Shops

Don’t forget about cyber liability insurance if your bike rental shop uses a website or mobile app where customers can book bikes. 

Unauthorized access can happen to your bike rental shop’s website or mobile app. Because of this, customer phone numbers, credit card numbers, and emails might get leaked. 

The job of cyber liability insurance is to take care of costs when this happens. You can use this insurance to pay the:

  • Costs for containing the breach

  • Costs for recovering any lost information

  • Costs for credit and fraud monitoring

  • Legal defense expenses

Other Types of Bicycle Rental Business Insurance Policies

Here are some other insurance policies to consider. Add these to your bike rental insurance package and enjoy a more comprehensive protection:

  • Business interruption insurance-Business interruption insurance is designed to reimburse you for lost income and expenses if your business has to close temporarily due to a covered loss, such as a natural disaster, fire, vandalism, or theft. This is included in commercial property insurance

  • Workers’ compensation insurance-Many states require businesses that hire employees to have a workers’ compensation scheme. This insurance coverage caters to the medical expenses and lost wages for employees who suffer work-related injuries or illnesses

  • Employee dishonesty insurance-Employee dishonesty insurance will cover financial losses if an employee of your bike rental shop commits theft, forgery, unauthorized credit card transactions, embezzlement, social engineering, and other dishonest acts. This may be offered as an automatic inclusion to commercial property insurance 

  • Commercial auto insurance-Commercial auto insurance is necessary to protect your business and its employees from financial loss in case of an accident or other incident involving company-owned vehicles used to deliver or transport rental bikes

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Bike Rental Business Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $35 $420 $0-$500
Professional liability insurance $40 $480 $500-$1,000
Commercial property insurance $50 $600 $1,000-$2,000
Business owner’s policy $80 $960 $1,500
Employee dishonesty insurance $60 $720 $1,000
Commercial auto insurance $55 $660 $500-$1,000
Workers compensation insurance $100 $1,200 $1,000-$2,500
Tools and equipment insurance Depends on the value of equipment to be insured Depends on the value of equipment to be insured $500-$1,000
Cyber liability insurance $90 $1,080 $1,000

The average bike rental business insurance cost is $35 per month or $420 per year for a $1 million general liability policy. Premiums are determined according to:

  • Number of bikes being insured

  • Location of the bike rental business

  • Type of coverage being purchased

  • Deductible 

  • Policy limits

  • Number of employees

Ensure you’re getting the best rates, compare quotes from multiple carriers to get the best coverage at the most competitive price. Start by clicking the “Get Quotes” button on this page. To get a further idea of the cost, here’s a table showing the rate of a $1 million general liability insurance from the recommended companies:

Cost per Month Cost per Year Best for
NEXT $18 $216 Best overall; Fastest general liability insurance for bike rentals
CoverWallet $21 $252 Comparing bike rental insurance quotes online
Tivly $23 $276 Comparing insurance quotes for bike rentals over the phone
Thimble $23 $276 On-demand coverage for bike rentals
McClain $25.83 $309.96 Insurance for rental e-bikes
Velosurance $38 $456 Roadside assistance coverage for bike rentals

Compare Cheap Bike Rental Insurance Quotes Online

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Best Bike Rental Business Insurance Companies

The insurance market is flooded with many providers, but you should choose a carrier that can underwrite policies specifically for a bike rental business. Also, look for companies with a history of paying claims promptly and fairly.

Here are the best bike rental business insurance companies to consider. Read some of the reviews below to know their cost of a $1 million general liability insurance, pros, and cons. 

NEXT Bike Rental Insurance


  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for bike rentals

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 


  • Couldn’t find any

NEXT’s bike rental insurance offers a business owner’s policy, general liability insurance, workers compensation, and tools and equipment insurance. This company’s BOP consists of $1 million-$2 million general liability insurance, $260,000 commercial property insurance, and $2 million product liability insurance. 

Getting covered is easy because NEXT allows you to purchase coverage online. Moreover, you can do this without talking to any insurance agent. 

Once you’re covered, NEXT creates an online account that you can access through the company website or mobile app. You can use this online account to view the present limits of your coverage, add additional insureds, and get a free certificate of insurance. 

Best for: Best overall; Fastest general liability insurance for bike rentals

Average cost: $18 per month 

Our rating: 10/10

CoverWallet Bike Rental Insurance


  • Compare bike rental insurance quotes online

  • Online policy management

  • Cancel your coverage anytime

  • Competitive rates


  • Not an insurance company but a broker 

CoverWallet is an insurance broker with an online platform that you can use to compare the quotes of different insurance companies and purchase a desired coverage online. By working with CoverWallet, you get comprehensive coverage at the most reasonable price. CoverWallet allows you to avail the following policies:

  • $1 million-$2 million general liability insurance

  • $50,000 commercial property insurance

  • $1 million professional liability insurance

  • Business owner’s policy

  • Workers compensation insurance

Best for: Comparing bike rental insurance quotes online

Average cost: $21 per month

Our rating: 10/10

Tivly Bike Rental Insurance


  • Compare quotes over the phone

  • A partner of many reputable insurance companies

  • Responsive customer service


  • You need to call to get a quote

Tivly doesn’t have a bike rental insurance package. However, you can get covered through this company’s retail insurance package. Call a Tivly representative to know what policies are offered and compare quotes over the phone. 

Best for: Comparing insurance quotes for bike rentals over the phone

Average cost: $23 per month

Our rating: 10/10

Thimble Bike Rental Insurance


  • On-demand coverage

  • Online certificate of insurance

  • Sells a short-term general liability policy


  • You can’t reach customer service by calling

Thimble can cover your bike rental business through its equipment rental insurance package. However, you will be referred to Tivly for a quote. Policies you might get are general liability, commercial property, business owner’s policy, and workers compensation insurance. 

Best for: On-demand coverage for bike rentals

Average cost: $23 per month

Our rating: 9/10

Velosurance Bike Rental Insurance


  • Bicycle rental-specific insurance policies

  • Road assistance coverage is available

  • A wide range of insurance policies, including customized coverages

  • Discounts are available for customers


  • It’s impossible to obtain a prompt quote online

Established in 2013, Velosurance is a great option for those searching for top-notch bicycle insurance in the USA. Their insurance policies are provided by Markel American Inc. and offer coverage for the total value of your bike, unlike other insurance providers that may only cover the depreciated value. This means that in case of any unfortunate incident, you’ll be able to replace your bike with a similar one. 

Whether you lose one of your rental bikes due to theft or damages while you’re away on a trip, Velosurance will cover the repair or replacement expenses, even if you’re abroad in countries other than the US and Canada.

Velosurance’s policies provide customization options to cater to the needs of bike rental businesses. The basic policy costs around 7-8% of the bike’s value. The coverage starts at $100,000 per year and covers events such as: 

  • Theft

  • Loss during transit

  • Accidental damage

It also offers liability protection with a $25,000, $50,000, or $100,000 per-incident coverage limit. The Fort Lauderdale, FL-based insurer also provides policies that cover roadside assistance with a maximum of 35 miles of transportation per breakdown for five occurrences a year and medical coverage.

Velosurance has joined forces with various bicycle shops throughout the US, providing customers with the convenience of having your bike serviced by your preferred local shop. Velosurance offers reduced rates to members of specific biking organizations such as USA Cycling, the International Mountain Bicycling Association (IMBA), and the USA Triathlon. As Velosurance only provides coverage for bikes, customers may not combine multiple coverages in a single policy.

Best for: Roadside assistance coverage for bike rentals

Average cost: $38 per month 

Our rating: 8/10

Mclain Bike Rental Insurance


  • Online quotes

  • Has a mobile app

  • Covers e-bikes

  • Text, call, or apply online for an insurance quote


  • Doesn’t cover bike shops only their bikes

McClain doesn’t cover bike rental shops. However, consider approaching this company if you want to get comprehensive insurance for all of your bikes. What makes this company stand-out is that it works with a wide network of bike rental repair shops. 

Another thing to know is that you can get insurance for a racing event consisting of general liability, participant accident coverage, and more. When purchasing insurance, McClain hooks you up with insurance agents who are cycling enthusiasts. This means that you’ll talk with someone who really understands your fears and needs. 

Best for: Insurance for rental e-bikes

Average cost: $25.83 per month

Our rating: 8/10

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