Last Updated: May 31, 2024, 6:39 am by TRUiC Team

Scooter Rental Business Insurance

Getting scooter rental business insurance is essential.

This is because scooter rental businesses need to be protected against a variety of different risks, such as those that relate to customer injuries, scooter damage or theft, and vendor-related disputes.

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 a Scooter Rental Business

General liability insurance is — generally speaking — one of the most important insurance policies for scooter 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

Having said that, it is important to understand that you could benefit from purchasing additional scooter rental insurance coverage. 

Additional coverage options that you could consider include: 

  • Commercial property insurance: This policy will cover the cost of repairing and/or replacing your scooters in the event that they get damaged or stolen. 
  • Equipment Breakdown Insurance: This covers the cost of repairing or replacing equipment that breaks down, including mechanical and electrical equipment. In the case of a scooter rental business, this might cover your scooters if they break down due to reasons other than normal wear and tear.
  • Commercial Umbrella Insurance: This provides extra liability coverage beyond the limits of your other policies. Given the potential for large liability claims in a scooter rental business, this extra coverage can be very valuable.

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Cost of General Liability Insurance

On average, scooter rental companies 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 scooter 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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Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Scooter Rental Business

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Example 1: An inexperienced rider reverses rather than accelerates forward, crashing before leaving the parking lot. The customer is injured and causes physical damage to a neighboring business’ delivery van. General liability insurance would cover the customer’s medical bills and costs to fix the damage to the delivery van.

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Example 2: While visiting your business, a customer trips and inadvertently knocks down a row of scooters. One of the scooters falls onto another customer’s leg. The injured customer must later have surgery due to complications stemming from the accident and is seeking payment for damages. A general liability policy will cover legal representation and any resulting payout.

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Example 3: Your marketing representative uses a tagline from a local author’s book. The author names both you and the marketing representative in a lawsuit. General liability insurance would cover the cost of legal representation and the damages ruled by the court, up to the limits of your policy.

Other Types of Coverage Scooter 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:

Commercial Property Insurance

If you own the building in which you run your scooter rental business, commercial property insurance is an essential part of your insurance package. This would cover the building as well as business property you keep on-site.

When considering your coverage amount, be sure to include the cost of any renovations you’ve made to the building and the replacement cost of all business property and specialized equipment stored there. Because your customers drive your rental scooters on public roadways, you may also need a separate auto policy for your fleet.

You can typically purchase this coverage as part of a business owner’s policy (BOP).

Workers’ Compensation Insurance

Your team is an essential part of your business’ success, so it’s important to cover them should an injury occur on-premises. Workers’ compensation is the state-mandated insurance that covers employees in the event of a work-related illness or injury. This covers medical bills for an employee’s work-related injuries, offers payment for lost wages, and also provides legal representation should a lawsuit occur.

You must purchase workers’ compensation insurance as a standalone policy.

Business Interruption Insurance

Could you keep your business afloat if you were forced to shut down for an extended amount of time? If not, you should consider purchasing business interruption insurance. In addition to replacing a portion of lost revenue, this insurance will help pay the expenses to move to a temporary location and any additional costs incurred because of that move.

You can typically purchase business interruption insurance as part of a business owners’ policy (BOP).

Commercial Umbrella Liability Insurance

While rewarding, the transportation industry faces increased liability risks with claims often exceeding the limits of primary liability policies. Commercial umbrella liability insurance increases liability coverage, protecting your business against sizable covered lawsuits.

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 scooter 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.

Scooter 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.

Generally speaking, yes. This is because you will want to avoid a situation in which liability arises and you are not insured. 

For a scooter rental business, we recommend purchasing the following types of business insurance:

  • General liability insurance
  • Workers’ compensation insurance
  • Commercial property insurance
  • Business interruption insurance

Not necessarily. Certain exceptions may be written directly into your scooter 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.