Bike rentals can be a very lucrative enterprise although the business is seasonal and popular only during the spring and summer seasons.
Moreover, your operations are subject to weather conditions, the local population and influx of tourists. However start-up costs are minimal and you do not need many employees to get your rental business running smoothly. You also need to acquire bike rental insurance as well as liability coverage before starting the business. The prospects of accidents and risk of injury to bikers are quite high so you need a comprehensive policy that will take care of these possibilities. At any rate, the location of your rental business is critical to your success. Look for a venue that is near places that tourists and local residents visit frequently.
Protection for the Enterprise
Make sure that your bike shop has absolute protection. It is not enough to ask rental customers to accomplish waivers for non-liability and post signs that you are not accountable in case any unfortunate incident happens. Bicycle rental insurance is still the best guarantee for potential misfortunes. If you research on service providers in the market, you will get an idea of the standard terms and conditions for bicycle insurance. The average premium costs $75 for each bike trip and covers loss or theft of the bike as well as damage to the frame or any parts and accessories. However, it does not include a guarantee that a replacement unit or parts will be provided in case of irreversible damage. Third party liability, medical expenses and other costs that will lead to damages are not included in the coverage. A deductible amount of $250 is always applied.
Comprehensive Policies for Bicycle Insurance
The increasing popularity of cycling in the country has also made it possible for insurance companies to come up with more extensive policies to cope with third party claims and resolve insurance issues. One plan for bike liability can have coverage of $100,000 with uninsured and under insured coverage both for motorists of $25,000 for each occurrence and aggregate of $50,000. $1,000 is allocated for medical expenses.
Theft coverage is a form of protection for your investment while bicycle damage coverage was formulated in anticipation of damages due to accidents. This can answer for any repair costs that the owner incurs. Roadside assistance plans are also available in case you get stranded due to breakdowns while biking. Liability insurance is one of the newest features designed for the benefit of bikers who face the risks of commuting in urban centers.
This third party liability protects bike riders in case of damage to other bikes or injuries sustained by other persons. This is an assurance for policy holders in case of claims made by third parties. Coverage is $100,000 and limited to third party liability. It is important to contact your respective insurance carriers although there are bicycle insurance firms such as Spoke Bicycle Insurance program that is offered by the R.E. Chaix & Associates Insurance Brokers and Sports Insurance Solutions.