One claim from an injury at a birthday party can wipe out an entire year of profits — or worse, expose you to personal liability. Before you take a single booking, you need the right insurance in place. Here's exactly what to get.
General Liability Insurance (Required)
This is the core policy every bounce house rental company needs. It covers third-party bodily injury and property damage claims arising from your business operations. If a child breaks an arm inside your bounce house, this is what pays for it.
Minimum recommended coverage: $1,000,000 per occurrence / $2,000,000 aggregate. Many venues and parks require a $2M/$4M policy before they'll allow inflatables on the property.
Expected cost: $800–$2,500/year depending on revenue and number of units. Providers that specialize in inflatables include Markel Insurance, K&K Insurance, and Event Helper. General business insurance companies often won't cover inflatables or will charge significantly more.
Commercial Auto Insurance
If you use a personal vehicle to haul inflatables to events, your personal auto policy likely doesn't cover it. You need commercial auto coverage for any vehicle used for business purposes. This covers accidents while hauling equipment to and from events.
Expected cost: $1,200–$3,000/year depending on vehicle type and driving history.
Inland Marine (Equipment Insurance)
This covers your inflatables, blowers, and other equipment from theft, vandalism, and accidental damage — including while in transit. Your units are your primary business asset; if a blower gets stolen out of your truck or a unit is vandalized at an event, this policy pays to repair or replace it.
Expected cost: $300–$800/year based on total equipment value.
Do You Need Workers' Compensation?
If you hire any employees — even part-time helpers for setup — most states require workers' compensation coverage. The rules vary by state and number of employees. If you're solo, you generally don't need it, but check your state's requirements before hiring anyone.
Certificate of Insurance (COI)
Most venues, schools, and corporate clients will require a Certificate of Insurance before allowing your inflatables on their property. Your insurance provider can issue COIs quickly — usually within 24 hours — with the venue listed as an additional insured. Get familiar with this process early because last-minute COI requests are common.
What Voids Your Coverage
Read your policy carefully. Common exclusions include: operating in high winds (most policies void claims if you operate above a specified wind speed, typically 25 mph), alcohol being served at the event, operating without proper anchoring, and exceeding the rated weight capacity. Follow manufacturer guidelines and your policy terms to ensure coverage holds.
Waiver Forms
While not a substitute for insurance, always use liability waiver forms for every rental. Include acknowledgment of weight limits, rules, weather policies, and the renter's responsibility for supervision. A signed waiver isn't a guarantee you won't be sued, but it demonstrates the client understood the risks and agreed to your terms.
