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:
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City bike rental
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Premium bike rental
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Bike leasing business
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Lake and beach bike rental business
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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:
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Your bike’s brakes and wheels are poorly maintained. As a result, a customer sustained injuries
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A person holds your business accountable after getting injured by a customer riding your bike
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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.
Get all the best quotes from leading providers in a click of a button!
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:
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Fire
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Theft
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Vandalism
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Civil commotion
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Riot
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Sinkhole collapse
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Volcanic action
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Lightning
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Weather
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Falling objects
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Impact
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Aircraft
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Vehicle
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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:
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The customer loses the bike of your rental shop because of theft
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Your customer is careless and damages the bike
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A gear, wheel, or bearing suddenly breaks down while a customer is using the bike
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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:
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Costs for containing the breach
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Costs for recovering any lost information
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Costs for credit and fraud monitoring
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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:
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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
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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
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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
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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
Help others make better decisions
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:
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Number of bikes being insured
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Location of the bike rental business
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Type of coverage being purchased
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Deductible
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Policy limits
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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 |
Get all the best quotes from leading providers in a click of a button!
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
Pros
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Best overall
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Issues an online proof of insurance instantly
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Fastest general liability insurance for bike rentals
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Great customer service and reputation
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Excellent rates
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Outstanding value for money
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Get a 10% discount if you buy two or more policies
Cons
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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
Pros
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Compare bike rental insurance quotes online
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Online policy management
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Cancel your coverage anytime
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Competitive rates
Cons
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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:
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$1 million-$2 million general liability insurance
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$50,000 commercial property insurance
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$1 million professional liability insurance
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Business owner’s policy
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Workers compensation insurance
Best for: Comparing bike rental insurance quotes online
Average cost: $21 per month
Our rating: 10/10
Tivly Bike Rental Insurance
Pros
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Compare quotes over the phone
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A partner of many reputable insurance companies
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Responsive customer service
Cons
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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
Pros
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On-demand coverage
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Online certificate of insurance
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Sells a short-term general liability policy
Cons
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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
Pros
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Bicycle rental-specific insurance policies
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Road assistance coverage is available
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A wide range of insurance policies, including customized coverages
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Discounts are available for customers
Cons
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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:
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Theft
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Loss during transit
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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
Pros
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Online quotes
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Has a mobile app
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Covers e-bikes
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Text, call, or apply online for an insurance quote
Cons
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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
