Our commercial grade customer base is always asking for more information on liability insurance for their inflatables. Being in the business of supplying premium quality commercial inflatables and not insurance, we found this question to be a little difficult to answer on our own.
When we decided to create a blog post about liability insurance for inflatables, we knew we’d want to get information straight from the source. We’re excited to present to our readers a guest post, written by Clark Edwards, Field Underwriter at Evolution Insurance Brokers and Prime Insurance Co.
Business Liability Insurance for Inflatables
If you charge the public for the use or rental of inflatable recreational products, it is essential that you purchase Commercial General Liability (CGL) insurance. Without liability insurance coverage, you are at risk of incurring expenses for legal defense and liability settlements. You could lose some or all of your assets in a lawsuit.
Liability waivers are not a substitute for liability insurance. Even the best waiver can be challenged, which would at the very least result in you paying for your own legal defense costs. Should it be necessary to pay a settlement, that expense would also have to come out of pocket.
In the event of a lawsuit, your liability insurance company would provide you with experienced, professional legal defense and pay any settlement necessary up to the limits of the policy. It is not possible to predict what limits of liability are adequate, but obviously the higher your limits are, the less likely it is that those limits would be exceeded by a claim settlement. If your insurance limits should be exceeded, the remainder of any settlement would have to come from your own assets. It would be wise to get prices for various limits of liability and purchase as much coverage as you are able to afford.
Here are some things to consider other than just price when looking for an insurance company to provide you with liability coverage:
- What is their financial rating? (Look for some grade of an “A” rating from A.M. Best.)
- How long have they been in business? Are the likely to stay in business?
- What is their reputation for claims handling? Do they tend to just “roll over” and pay claims, or perhaps not pay when needed? Or do they aggressively defend claims?
- Do they offer pay plans to ease the expense of purchasing coverage?
The premiums charged for this type of commercial liability insurance are often influenced by judgment factors. Commercial liability insurance is not like personal Auto or Homeowners insurance where a company’s rates are filed and fixed. Commercial underwriters can decrease or increase the premiums charged depending on how they view your business practices. For example, you can get the best rates available from an insurer by showing that you: 1) utilize well written waivers: 2) have effective written safety and training programs; 3) meet or exceed all industry standards; and 4) document good equipment maintenance practices. Demonstrating smart, careful, and safe business procedures to insurance underwriters can result in lower costs for you.
If you’re in need of Business Liability Insurance for Inflatables, please don’t hesitate to reach out to Mr. Edwards! You can find his contact information below:
Clark Edwards, Field Underwriter
Evolution Insurance Brokers and Prime Insurance Co.