Last Updated: February 21, 2024, 10:53 am by TRUiC Team

Bike Tour Company Insurance

Getting insurance for your bike tour company is essential.

Bike tour companies need to be protected against things like accidents and injuries, misleading statements made about the tour, breach of contract, and property damage.

For example, a client claims that you misrepresented the skill level of one of your tours, or a guide gets into an accident during a tour — necessitating time off

We’ll help you find the most personalized and affordable coverage for your unique business.

Compass needle pointing towards blue insurance logo
How to Start an LLC Tip Icon

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Bike Tour Company

General liability insurance is — generally speaking — one of the most important insurance policies for bike tour companies. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

That being said, there are several additional insurance policies that many bike tours tend to invest in to supplement their protection. These include:

  • Commercial property insurance
  • Workers’ compensation insurance
  • Commercial auto insurance
  • Commercial umbrella insurance

When buying insurance for your bike tour company, there are typically two distinct types of providers you can buy from:

  • Traditional brick-and-mortar insurers: This refers to providers which use a physical store and insurance agent to offer their quotes. These include trusted, longstanding companies like The Hartford and Hiscox.
  • Online insurers: This refers to providers who operate exclusively online. We typically recommend this option due to the fact that they are able to match the accuracy and quality of traditional providers at an affordable price.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, bike tour companies in America spend between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a bike tour company to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

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.

Graph showing average price of general liability insurance prices per industry

How to Start an LLC Tip Icon

Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Bike Tour Company

How to Start an LLC Tip Icon

Example 1: While trying out a bike before a tour, a customer falls, suffers a concussion, and demands your business pay for her medical care. General liability insurance would cover the injured customer’s medical treatment.

How to Start an LLC Tip Icon

Example 2: As one of your tour guides loads bikes into a company truck, he accidentally drops one on a customer’s bag and smashes the laptop and camera stored inside. General liability insurance would cover the cost of replacing customer’s damaged property.

How to Start an LLC Tip Icon

Example 3: During one of your tours, a customer crashes his bike, breaks an arm, and decides to sue your business. While customers participating in your tours assume a certain level of risk, you still want to hire an attorney to protect your business. General liability insurance would cover your legal defense.

Other Types of Coverage Bike Tour Companies Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Property Insurance

You made a major investment to purchase the bikes and other equipment you need to run your business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your office building as well as your bikes and other business equipment.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your tour guides and other employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Auto Insurance

Any vehicle you use primarily for your bike tour business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any bikes or other business equipment you carry in your vehicle.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your bike tour company:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Bike Tour Company Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

It is strongly advised that your bike tour company acquire appropriate business insurance as it could be exposed to a plethora of potential risks unprotected without it.

What’s more, in many cases, your business will need some forms of insurance to simply maintain legal compliance, like if you want to hire employees or if your company uses any vehicles.

Not necessarily. Certain exceptions may be written directly into your bike tour company insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.