Do you run a kayak rental business and need insurance coverage for your kayaks? If YES, here are 10 best insurance policy for kayak rental businesses.

With the growing interest in paddle sports all over the world, starting a Kayak rental business is indeed a lucrative endeavor. Nevertheless, irrespective of how you intend to start this business, your state will likely require you to carry some form of insurance.

These insurance policies are meant to protect both your employees and customers in the event of an accident. Coverage for damages to your fleet may be particularly necessary since you are renting them out to others. Your business insurance policy may provide the coverage required by your state, but it might not provide protection for theft and loss of equipment like oars or helmets.

What Does a Basic Kayak Insurance Cover?

Note that basic kayak insurance will provide liability coverage for personal property damage and bodily injuries. If you are being sued following a boating accident, liability insurance will typically cover your legal expenses as well. More policies that are comprehensive will also provide coverage for loss or damage of your boat and your boating equipment such as oars, life jackets and boat covers.

You can also choose to insure the trailer or equipment you use to transport your boat to and from the water. It is advisable you take your time to speak to an agent to find the right package of coverage for your needs and budget. Specific kayak insurance is designed to make sure you have cover in place while your kayak is in storage, in transit or speeding down some white water rapids.

Most rental businesses have no-liability waivers, extensive rental agreements, or even Hold Harmless clauses. However, this does not mean that they are fully protected! As a Kayak rental business owner, you must look into industry conventions and pick an insurance that will help you minimize risk in the long term.

Some of these are specific to working in the rental space, while others would be a good idea for any business to have. If you are looking to start a kayak rental business, below are necessary insurance policies to acquire for your business:

  1. Outdoor & Recreational Insurance

Outdoor & Recreation insurance provides general liability insurance to protect businesses from bodily injury and property damage resulting from their products and operations. Businesses in the sports, leisure and recreation industries, just like a Kayak rental business, cater to individuals that “pay-to-play” and rely on your expertise, gear, and instructions to safeguard them during the activity.

If – or when – an accident occurs, the company may be held legally liable for the injuries caused to another while participating in the activities of the business. Note that legal fees alone may cripple a business but indemnification costs and punitive damage awards will almost certainly destroy it.

  1. General Liability Insurance

All businesses, irrespective of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL). Although businesses in the United States are not legally required to carry general liability insurance, running your kayak rental business without it is extremely risky.

If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). That’s the more reason you need to have a sufficient CGL policy in place to help compensate for these damages. On average, canoe rental businesses in America spend around $400 – $1,100 per year for $1 million in general liability coverage.

However, you may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

  1. Conversion Insurance

This is a common type of insurance taken out by companies, as it protects your business against theft by a customer. ‘Theft’ in this context refers to cases where customers willingly or otherwise neglect to return kayak, oaks or even helmets. This policy protects your business against these losses that could ridicule your business.

  1. Business Income Insurance

This insurance is more or less similar to the Loss of Use coverage, this insurance covers the loss of rental orders arising because of damage to your property or business assets. This means you can safely suspend operations as you work towards getting your business up and running again after some mishaps to your store or kayaks.

  1. Business Owners Policy

A Business Owners Policy, also known as a BOP, are combination packages for business owners who need several, important insurance products. This type of insurance policy will typically combine the features of two very important policies:

General Liability Insurance and Commercial Property Insurance. A combination of these policies will cover issues that involve personal injury, claims against your business related to false advertising and damage to your property. You will need this insurance once you start your rental business, hire employees, or both.

If you are working as a single individual and have not leased any of your kayaks, it is likely that none of these policies will matter. However, you will want to get this policy once your kayak rental business begins to grow. A General Liability Insurance policy and a Property Insurance policy, in particular, will be of importance to you once you first lease a property.

  1. Errors & Omissions

There are several decisions a rentals business like a Kayak rental business must make that may result in a claim. This may include the choice not to rent or lease a property to someone. These types of decisions and several others can lead to a lawsuit against your business.

Also known as Professional Liability Insurance, E&O Insurance is designed to protect a business when a lawsuit arises from a claim relating to a decision you or a surrogate made while providing services. As your service is related to leasing and managing kayaks, the type of claim will relate to how the business is managed. In both cases, your business may be on the hook for a legal complaint.

  1. Workers Compensation

In most US states, Workers Compensation Insurance is mandatory. All states in the U.S., except for Texas, require some amount of Workers Compensation once a business has employed a minimum number of employees. This could be as few as two or three employees.

If you own multiple fronts or shops and hire several people to manage those kayaks, you may be required to have Workers Compensation Insurance. Even if you are not required to purchase this policy, it is still a good idea to invest in it. Employees who manage your business operations could be at risk of injury, particularly when entering and inspecting kayaks.

  1. Commercial Property Insurance

Rentals companies rely on their properties to form an income. The physical state of those properties is absolutely crucial to the success of the business. Commercial Property Insurance will provide coverage for your kayaks in case damage renders them impossible to rent or lease.

This insurance policy is important for two reasons, the first is coverage for income properties damaged as a result of natural or man-made disasters, and secondly loss coverage in case you are unable to draw an income due to damaged properties. Commercial properties insurance helps to prevent any financial loss.

  1. Cyber Liability Insurance

Cyber attacks are on the rise. Even if your business is small, a cyber attack could result in stolen personal data from your customers. This should be a concern for all businesses, as almost all businesses now own or utilize digital data collected from their clients. You will need this insurance once you begin to collect data digitally from lessees. This can include bank account information, credit card information, or other personal information.

  1. Commercial Auto Insurance

If your business uses automobiles for the transportation of kayaks, you will need to obtain a commercial auto policy. This policy covers damage to both your vehicle and others that may be involved in an accident as well as any medical expenses for injured individuals.

There is some complexity surrounding what is and is not covered if you drive your personal vehicle for business use, so be sure to do your research to make sure you are fully covered. Insurance for your kayak rental business probably is not foremost in your mind but there are several benefits to having cover in place.

When purchasing or renewing your insurance, makes sure you double check what is covered and what is not. You may find that the cover for your kayak is no longer adequate. Some kayaks could be classed as sports equipment under one insurer but not another. So always check the terms. Be clear about what you want and get it in writing.

Solomon. O'Chucks