Last Updated: May 31, 2024, 6:38 am by TRUiC Team

RV Rental Business Insurance

Getting insurance for your RV rental business is crucial. This is because you will need to protect your business’s assets from a variety of different risks, such as those that relate to traffic accidents and property damage. 

For example, you will want to cover the cost of repairing and/or replacing your RVs in the event of an accident, as well as cover the cost of compensating a customer or an employee in the event that they get injured. 

We’ll help you find the most personalized and affordable 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 an RV Rental Business

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

Some of the risks general liability insurance covers are:

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

Even so, your business will likely benefit from purchasing additional coverage policies.

This is because it will need to be protected from a variety of other risks, such as those that relate to:

  • Employee injuries or property damage while driving a company RV — Covered via a commercial auto insurance policy. 
  • Damage or theft of a company RV — Covered via a commercial property insurance policy.
  • Employment law-related disputes — Covered via a workers’ compensation insurance policy. 

You will also need to find the right business insurance provider for your small business. As of 2024, there are two different types of insurers available: 

  1. Online insurers (recommended) — Popular examples include Tivly and Next Insurance.
  2. Brick–and-mortar insurers — Popular examples include Nationwide and The Hartford. 

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Cost of General Liability Insurance

On average, RV rental businesses in America spend between $350 - $700 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for an RV rental 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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Common Situations That General Liability Insurance May Cover for an RV Rental Business

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Example 1: As you show a customer the different RVs you have for rent, she trips over a cable, breaks an arm, and decides to sue your company for damages. General liability insurance would pay for your legal defense and any required settlement.

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Example 2: A local competitor sues your business for libel. While you disagree with the claim, you know you need a lawyer right away. General liability insurance would cover your legal defense costs and any required settlement.

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Example 3: While entering your restroom, a customer slips on a wet floor, injures himself, and demands you pay for his medical treatment because you didn’t mark the wet floor. General liability insurance would cover the cost of his medical care.

Other Types of Coverage RV 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 of the most common types of coverage:

Product Liability Insurance

While you strive to keep your RVs in good repair and hope your customers enjoy them, there’s always a chance someone might decide your product caused them injury. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in your RV inventory as well as the other equipment, supplies, and real estate needed 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 building and grounds as well as the business materials stored there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. 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 or death benefits stemming from a workplace accident.

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 RV rental 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.

RV Rental 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, you do. This is because you will likely be legally required to purchase some forms of business insurance (i.e., commercial auto, etc.) as an RV rental business.

Even if this wasn’t the case, getting insured before you start is generally recommended since liability could technically arise as soon as you begin operating.

Not necessarily. Certain exceptions may be written directly into your RV rental 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.