Last Updated: February 22, 2024, 12:09 pm by TRUiC Team

Party Bus Business Insurance

Getting insurance for your party bus business is essential.

Party bus businesses need to be protected against personal injury claims, breach of contract, and employment disputes.

For example, one of your party buses could get into an accident and cause either injury to its riders or property damage to a third party.

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

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

Best Insurance for a Party Bus Business

General liability insurance is — generally speaking — one of the most important insurance policies for party bus businesses. 

Some of the risks general liability insurance covers are:

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

Despite the comprehensive coverage provided by general liability insurance, there are several risks specific to your interior design business that it does not cover. Therefore, it is advisable to consider additional policies, such as:

  • Commercial Property Insurance: This policy covers physical assets, such as buildings, equipment, and inventory in the event of damage or loss from covered risks like fire, storms, theft, or vandalism. This can include campground structures like office buildings, restrooms, or recreational facilities.
  • Business Interruption Insurance: Also known as business income insurance, this covers loss of income in the event that a disaster or other event disrupts your business. For instance, if a flood or wildfire forces you to close the campground temporarily, this policy can help cover lost income and certain operational expenses during the closure.
  • Commercial Auto Insurance: If the campground owns vehicles used for business purposes, such as maintenance trucks or shuttle vans, commercial auto insurance can provide coverage for any accidents involving those vehicles.

Let's Find the Coverage You Need

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

Party Bus Insurance Cost

On average, party bus businesses in America spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a party bus business 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

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Find the Best Rate

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

Common Situations That General Liability Insurance May Cover for a Party Bus Business

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Example 1: A bachelorette party guest walks to the front of the bus to toast the bride-to-be and trips on a string of festive lights. The resulting fall seriously injures her head. General liability insurance would cover the guest’s medical bills and any legal costs in the event of a lawsuit.

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Example 2: Enroute to their performance venue, a group of entertainers stores their bags in the overhead bins. One overhead bin door falls off and seriously injures a passenger’s head, leading to an ambulance ride to the hospital. Your general liability coverage would cover the passenger’s medical bills as well as your legal costs and any damages if he decides to sue.

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Example 3: During a tour of your warehouse and rental office, a potential investor slips on the wet floor in your restroom. After breaking a wrist and fracturing several ribs in the fall, she threatens to sue because you did not display a “wet floor” sign. General liability insurance would cover her medical bills as well as your legal fees and any settlement awarded in a lawsuit.

Other Types of Coverage Party Bus 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 of the most common types of coverage:

Commercial Auto Insurance

While your business provides customer entertainment services, your daily operations focus on transportation. You must cover all vehicles used for business purposes with a commercial auto insurance policy, including any personal cars used for errands or other business-related activities.

Liquor Liability Insurance

If your party bus serves, sells, or otherwise distributes alcohol to its patrons, you will likely need to obtain liquor liability insurance. This policy may cover third-party bodily injury or property damage caused by a patron you served too much alcohol to. In addition, it may cover any legal costs incurred by incidents related to your business overserving an individual.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your 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 benefits stemming from a work-related accident.

Employment Practices Liability Insurance

If you have employees, you may also consider purchasing employment practices liability insurance (EPLI) in order to protect your business against employee lawsuits. These may be in relation to sexual harassment, breach of contract, wrongful termination, and discrimination claims.

You can often purchase EPLI as part of a business owner's policy.

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.

Business Interruption Insurance

If an accident or other disaster forces you to temporarily close while you make repairs, you could end up covering certain financial losses yourself. In most cases, you won’t be able to pay these costs out-of-pocket for an extended time period. Business interruption insurance would cover these costs until you can resume normal operations.

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 party bus business:

  • 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.

Party Bus Business 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.

Yes. Obtaining a party bus insurance policy (or multiple policies) prior to accepting your initial client is crucial for securing your company's financial stability in the long run.

Additionally, it's worth noting that if you have company vehicles, you'll need to acquire commercial auto insurance, and if you have employees, you'll need to obtain workers' compensation insurance, both of which may be mandatory in accordance with local laws.

Not necessarily. Certain exceptions may be written directly into your party bus business 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.