What Insurance Do I Need for a Bicycle Rental Business?


A bicycle rental business can be profitable if you are in the right area. Renting bicycles for about $15 per half hour can add up nicely, especially when you operate your bicycle rental business as part of another shop.

Bicycle rental businesses add nicely to bicycle retail stores, bicycle repair businesses, outfitting shops, and tourist rental shops. Bike rental businesses work exceptionally well in high-traffic tourist areas, but you can also do well when renting bicycles in regions with a lot of mountain biking.

You need a fleet of bicycles, a solid business plan, and a focused marketing strategy. In addition to typical business troubles, there are various risks associated with bicycle rentals, so you must protect your business with an excellent insurance package.

Protect Your Bicycle Rental Shop with Business Insurance

When you develop your business plan for a bicycle repair shop, you must include a risk mitigation plan because of the high risks associated with bicycling.

In most states, some types of insurance are required to run any business, such as worker’s compensation and general liability. However, when operating a high-risk business like a bicycle rental shop, you need more than the minimum required to protect yourself.

Your small business insurance cost will depend on many factors, but it’s easy to contact an insurance broker to get started on a tailored package for your business. You can also get a quote online to give you a good idea of what your costs will be each month.

Factors That Determine the Cost of Business Insurance

Every business is different, and it costs more to insure some companies. So it makes sense that a person teaching art classes would pay less than a handyman, for example.

Here are the factors that determine small business insurance costs:

The Number of Employees

The number of employees at your business affects your insurance’s cost, primarily due to worker’s compensation requirements.


Every state has different regulations, so your location will play a big part in how much your insurance costs will be.

Also, how many locations your business has will help determine your costs. Opening a new storefront will expose your business to more risk.

Your Industry

As mentioned, it matters how much inherent risk is associated with your industry. Bicycle repair businesses have considerable exposure to risk, so you can expect to pay more than a hairdresser, for example.

Your Operations

A yoga teacher who goes to people’s homes for instruction will have less exposure to risk than a yoga teacher who holds public classes. The scope of your operations will play a part in your risk.

Bicycle rental businesses are public, and you don’t have much control over where someone takes their rental bike.

Even if you recommend specific routes and have people sign a waiver, your operations are still riskier than many other categories.


If you’ve been in your industry for a long time and have built professional experience, your risk is lower than someone just starting. In addition, your expertise can help lower your final costs of small business insurance.

Why Insurance Is Critical for a Bicycle Rental Business

The complexity of bicycle rental litigation creates a special need for solid insurance policies for bicycle rental businesses. Your business can be included in a lawsuit even when it isn’t at fault.

Even when you have a customer sign a release of liability, you have to adequately inform them of their risks, which can be hard to do if you have to rely on employees.

Without insurance, an accident can put your business at risk. Even if you win a lawsuit against your company, the average cost of a liability lawsuit is $50,000. Most small businesses can’t survive that kind of expense.

The Dangers of Bicycling

Bicycling is an inherently dangerous activity. According to the Centers for Disease Control (CDC), bicycle safety is a public health concern because thousands of bicyclists are injured or killed yearly.

While bicycling only accounts for about 1% of trips people take in the United States, it accounts for 2% of accidents. Even with safety interventions such as helmets, bicyclists are at greater risk of injury and death.

As improved roads are built to include space for bicyclists, it should get safer for bicyclists. However, there is still a considerable liability for bicycle rental businesses, government entities, and anyone else that a personal injury attorney wants to include in a lawsuit.

Types of Insurance Policies for a Bicycle Rental Business

If you’re starting a bicycle rental business, you should talk to an insurance broker to find out what policies would be best for you. You can build a package from the following coverage types that provide maximum protection for your business.

General liability– helps your business cover costs in the event of an accident or injury,

Product liability– usually included in general liability, this type of coverage would be essential for a bicycle rental business,

Commercial property– protects all of the physical items required to do business,

Worker’s compensation– covers workplace injuries and pays for lost wages and medical bills,

Commercial auto– covers vehicles owned by your business,

Professional liability– protects you when you make mistakes and are negligent.

Get an Online Quote

You can get a hassle-free online quote in just minutes tailored to your bicycle rental business’s needs and location. Customized recommendations from a super-fast business quote process can help you make the best decisions about business insurance for your new venture.