In order to have an idea of how insurance works for an all-terrain vehicle (ATV) rental business, you must first know what all-terrain vehicle (ATV) rental business is all about.
An ATV rental business is a company that provides all-terrain vehicle (ATV) rentals to customers for recreational purposes. ATVs are small, motorized vehicles designed for off-road use and can be used for various outdoor activities such as trail riding, exploration, and adventure tours.
ATV rental businesses typically offer customers the opportunity to rent ATVs by the hour, half-day, full-day, or even for longer durations, depending on their specific needs and preferences.
When you start an all-terrain vehicle (ATV) rental business, you need to discuss with insurance agencies, insurance brokerage firms, or insurance companies to assess the potential risks that the business will be subjected to, and thereafter recommend the most suitable insurance policy coverage for the business.
With the required insurance policy covers (premiums paid up to date), if any of the risks happen, the insurance company will pay the claims.
Please note that if you own an all-terrain vehicle (ATV) rental business, there are a number of risks that are difficult or impossible to control. Most of the risks increase the likelihood of accidents or injuries.
These risks can be as a result of lack of proper safety precautions, rough terrain, climbing steep hills, exceeding passenger capacity, speeding, and reckless, inexperienced, or intoxicated driving.
Best Insurance Policy for ATV Rental Business
General Liability Insurance
The fact that general liability insurance offers liability insurance coverage that helps to protect a business from claims makes general liability insurance coverage highly suitable for an all-terrain vehicle (ATV) rental business.
If one of your customers gets injured within your facility while trying to rent an all-terrain vehicle (ATV), the business could be held responsible for their injuries. A general liability insurance policy would cover the cost of medical bills or legal fees associated with the incident.
Cost: In the U.S., the average cost of liability insurance for a small all-terrain vehicle rental business is between $300 and $1,000 per year.
However, in certain states, the cost can increase significantly. For example, in California, the average cost is around $2,000 per year.
Commercial Auto Insurance
Commercial auto insurance is designed for businesses that own a fleet of vehicles including all-terrain vehicles. This insurance covers physical damage to the rented vehicle(s) and enables you to provide identical coverage for multiple vehicles under one policy.
Commercial auto insurance covers accidents, damage to your all-terrain vehicles, and liability in case one of your riders gets involved in an accident while on his way to deliver or pick up your all-terrain vehicle. Please note that before you can file for a claim under commercial auto insurance, the rider must be at fault.
Cost: Small businesses pay an average premium of $147 per month, or about $1,762 annually, for commercial auto insurance in the United States.
Commercial Property Insurance
The fact that you must have a parking or storage facility to keep your all-terrain vehicles (ATVs) means that it is compulsory to have commercial property insurance coverage for the business.
A commercial property insurance policy covers damage to your business premises (your parking facility or storage facility), all-terrain vehicles (ATVs), equipment, and inventory in and around the commercial property.
Some insurance companies that offer commercial property insurance may also cover your office equipment especially if the office is not in the same premises as your parking or storage facility.
Cost: Generally, commercial property insurance costs an average of $756 annually or approximately $63 per month for all-terrain vehicle (ATV) rental businesses in the United States.
Workers’ Compensation Insurance
Worker’s compensation insurance is an insurance policy that covers any compensation you have to pay to your workers.
The fact that you cannot rule out workplace accidents from happening means that you cannot do without workers’ compensation insurance.
Workers’ compensation insurance provides coverage for medical expenses and lost wages for employees who are injured on the job.
Cost: The average cost of workers’ compensation insurance is $936 per employee, per year, or $78 per month in the United States.
Inland Marine Insurance
Inland Marine Insurance is a specialized form of insurance coverage that is designed to protect against the loss or damage of certain types of property or assets that are not typically covered by standard property insurance policies. Despite its name, Inland Marine Insurance has little to do with actual marine (ocean or water) exposures.
Instead, it primarily covers property that is movable or in transit, both on land and in some cases, temporarily stored off-site. It is particularly relevant for businesses that deal with property that frequently moves or is at risk of damage during transportation.
Cost: The cost of inland marine insurance coverage depends on the value of your business property, among other factors.
Small businesses pay an average premium of $29 per month or about $350 annually for inland marine insurance in the United States.
The fact that there are limits to the coverage of each of the insurance policy coverage discussed above means that if your business is exposed to heavy unforeseen events, the business might not be able to bounce back. Hence you need an umbrella insurance policy cover.
Umbrella insurance policy cover might not be compulsory for all businesses, but should you need robust coverage for your pilot car business, then you will need umbrella insurance policy cover.
This is so because umbrella insurance provides an additional layer of coverage that goes beyond the limits of primary liability insurance.
For example, if a customer or an employee files a lawsuit against the pilot car business that exceeds the limits of primary liability coverage, umbrella insurance will provide additional coverage to meet the excess costs.
Cost: Small businesses pay about $40 premium per month for each $1 million of umbrella coverage.
Insurance Companies That Offer Policies for ATV Rental
a. MBA Insurance
The MBA All-Terrain Rental Insurance Program provides peace of mind so the only thing you have to worry about is offering your renters their next great adventure.
On the All-Terrain Rental Insurance Program, you as the rental operator pay a monthly premium for each all-terrain vehicle insured on the policy. You can also extend coverage to each rental by having the renter purchase their daily insurance protection online.
Their coverage includes State statutory limits of liability for the renter, Excess liability for the rental business, and Physical damage coverage for the all-terrain vehicle.
Please note their policy requires that your all-terrain vehicles must be 20 years or newer, and your all-terrain vehicles must have a clean title.
The renter must be at least 18 years of age, and the renter must sign a rental agreement (you can also ask about our templates from them).
XINSURANCE is a dba of Evolution Insurance Brokers, LC (“EIB”), an excess and surplus lines brokerage licensed in all 50 states, US Virgin Islands, and Guam.
XINSURANCE can help you extend coverage limits, attain coverage specific to your needs, and cover any gaps or exclusions unprotected by your current insurance policies.
Their insurance covers physical damage to the rented vehicle(s), and their fleet insurance enables you to provide identical coverage for multiple vehicles under one policy, they also offer physical damage while the unit is rented and/or while it is stored.
GEICO provides insurance for many types of off-road vehicles, including ATVs and UTVs. Before taking your ride out on the trail, start a free quote to find out how you could combine savings with great customer service on insurance coverage for an off-road vehicle.
ATV insurance from GEICO includes a wide range of coverages such as ATV Collision Coverage, ATV Liability Coverage, ATV Comprehensive Coverage, ATV Uninsured/Underinsured Motorist Coverage, and ATV Medical Payments Coverage.
d. Mountain Insurance
If you shopping for general liability insurance for an ATV or UTV Rental Business in Colorado and beyond, then Mountain Insurance can help you get the best rates and the best coverage you need.
Mountain Insurance offers limits of up to $2 million but if necessary they can offer higher. For any snowmobile and ATV rental business, they recommend limits of at least $1 million.
Mountain Insurance general liability coverage protects premises and operations and is written on an occurrence basis. Mountain Insurance offers coverage for units that are lost, stolen, or damaged as well.
Other Insurance companies that also provide customized insurance policy coverage for all-terrain vehicle (ATV) rental business include:
- Markel Insurance Company
- Progressive ATV insurance and UTV insurance
- Prime Insurance Company (“PIC”)