Insurance unfortunately is a vital party of any Party Rental businesses yearly expense, operating without it would be suicide. On todays episode the PRSB podcast will dive into the particulars on insurance. What kind of insurance do I need? How much liability is enough? What about my employees? We will talk all these things and more as we talk to a man who has been in the rental insurance industry for 37 years – Mr. Larry Cossio.
1) ASTM Standards- www.astm.org – Larry referred to this in the opening comments.
2) Safety Ideas for the Newby getting into the Party Rental Industry
a. Know Thy Equipment – Know the associated risks with the equipment you are purchasing
b. Site Inspection – Know where the electrical lines are. Know where the plumbing lines are, Know the overhead clearance.
3) How are liability rates calculated? based on gross sales and if your just starting your gross sales are estimated on industry standard sales for new businesses.
4) What is recommended for liability Limits? Standard is 1 million per occurrence, 2 million aggregate. That will get you into most parks or city set ups. Some states require 3 million. City Schools may increase your need for limits.
5) Cossio is a broker of insurance- their main program is with Nation Wide Ins. but they can get insurance on anything.
6) Water Items- Some underwriters have an issue with water items. Check with your provider.
7) How do you handle a competitor who sets up unsafely? Answer: Educate your renters. Educate the community. Makes you #1 an expert and the person they will think about when a rental is needed.
8) Should you set-up rentals wit competitors? NO NO NO NO NO NO NO!!!… you are exposing yourself to undue liability, you are exposing your company to bad publicity. DON’T SET UP WITH YOUR COMPETITORS NO MATTER HOW FRIENDLY YOU ARE WITH THEM OR HOW MUCH YOUR CUSTOMER SCREAMS ABOUT IT. Educate your customer as to why you can not set-up your equipment with a competitor.
9) Waivers vs Rental Agreements: What’s the difference? Rental agreement is a transfer of risk, your providing a piece of equipment they are going to operate it. That’s pretty much standard 50 state wide. Waiver
10) Rental agreements and waivers are state specific – don’t use someone else’s waiver and adopt it as your own. Have a local attorney prepare your waiver. They are so specific that even the font size can void a waiver or rental contract – spend the little money it takes to have an attorney put your waiver together. 3 waivers from other companies for the attorney to look at.
IAAPA Booth # 4662