Business Insurance for Canoe Rental Businesses

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Business insurance is designed to protect a business owner's financial assets and is an essential investment for a canoe rental business.

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About General Liability Insurance

All businesses, regardless 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).

Some of the risks CGL insurance covers are:

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

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A CANOE RENTAL BUSINESS

Example 1: While unloading a canoe, an employee loses their grip and drops it on a customer’s car. General liability insurance would usually pay to repair damage from this type of accident.

Example 2: During a routine canoe trip, a customer severely cuts their hand on a jagged edge of metal protruding from the canoe. Your general liability policy should cover the medical expenses as well as potential customer refunds.

Example 3: Your staff created a poster design, but they did not know that a design element that was used was covered under copyright laws. A general liability policy would cover legal fees and payout expenses in the event of a lawsuit.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost of General Liability Insurance

On average, canoe rental businesses in America spend between $400 - $1,100 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

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.

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Other Types of Coverage canoe rental businesses 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 other types of insurance all canoe rental businesses should obtain:

Commercial Auto Insurance

If your business uses automobiles for transportation of equipment and/or customers, 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.

Types of Coverage Some canoe rental businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your canoe rental business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

 Workers’ Compensation Insurance

Businesses that hire part-time or full-time employees are usually required by state law to carry workers’ compensation insurance. In the event of an on-the-job injury or illness, it covers the employee’s medical bills. If they are out of work for an extended period of time or opt to sue the business for additional payout, the policy would cover these additional costs.

 Professional Liability Insurance

To best serve their clients, canoe rental businesses often make trip recommendations to those visiting from out of the area. Professional liability insurance, also known as errors and omissions insurance (E&O), offers your business protection should that recommendation lead to a lawsuit.

Additional Steps to Protect Your Business

Although it's easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

 

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

Frequently Asked Questions

What is included in a business owner’s policy?

A typical business owner's policy includes general liability, business interruption, and 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.

What is the difference between business insurance and general liability insurance?

"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.

Do I need insurance before I start a business?

You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it's best to be proactive when it comes to protecting your assets. After all, you can't buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.