Rental stores are like any other business , since they need proper protection against liability and damage. Whether you rent party supplies or heavy machinery, you don't want to send customers away with your property unless you know you have protection if something goes wrong. South Carolina Business insurance covers your business on and off-premises.

If you're looking to buy rental store insurance, a South Carolina independent insurance agent is the ideal place to start. They know the ins and outs of rental insurance and can help you build a comprehensive insurance package. But first, let's talk more about rental store insurance.

Rental Store Insurance in South Carolina

Rental store insurance is business insurance for a store that rents out equipment or other products. The most common types of rental stores are camera and gear rental, hand and power equipment, and party rentals. Rental insurance provides protection for any damage that could be done to your store and its products. Whether the physical store is damaged in a covered peril or a customer damages what they've rented from you, a rental insurance policy has multiple components that provide coverage against potential risks. According to insurance expert Jeffrey Green, "Basic rental store insurance includes general liability, commercial property, commercial auto, and business interruption."

US equipment rental market size from 2019 to 2024 (in billion US dollars)*

The equipment rental market in the United States is forecast to be $48.9 billion in 2021.

How to Insure a Rental Store in South Carolina

The first step to insure your rental store is to understand your risks. According to Green, "Rental stores have unique risks because their equipment is not operated by employees under their supervision." Any rental store faces the following risks:

Once you understand all of the risks that your rental company faces, you can begin to build an insurance package that covers any potential incidents. Working with an independent insurance agent is the easiest way to get started on this process. There are a variety of coverages that you can add to your rental store insurance policy depending on the type of rental product you have. 

What Does Rental Store Insurance Cover in South Carolina?

At the very least, every rental store needs general liability, commercial property, commercial auto, and business interruption. These policies provide the following coverages.

• General liability insurance: Protects you if you or your staff members are responsible for any bodily injury or property damage to others. It will also cover any bodily injury or property damage that comes from your operations, including rental items in the hands of customers.
• Commercial property insurance: Covers any damage that is done to your business property, including the structure if you own the building, the contents in your building, including rental items, and non-rental items. 
• Commercial auto: Pays for any bodily injury or property damage that is sustained while you or your employees are driving a company vehicle. It will also cover any third-party bodily injury or property damage that occurs while someone is driving a company vehicle. 
• Business interruption insurance: Pays expenses and lost income should your business have to temporarily shut down because of a covered peril such as a fire or hurricane. 
• Workers' compensation: South Carolina requires employers with at least four employees to carry workers' compensation insurance. This helps pay for any injuries or lost wages an employee sustains on the job.

In addition to these standard business insurance policies, many rental companies can benefit from the following policies, which provide added coverage.

• Inland marine insurance: This covers your equipment whether it's on or off your premises and regardless of whose hands it's in. This is particularly important for rental insurance companies, as it's designed specifically for products that are being transported or moved. 
• Product liability insurance: Provides coverage against legal liability associated with a product defect that causes personal injury or damage associated with its use. 
• Equipment breakdown coverage: Sometimes equipment breaks down. If you rent expensive equipment like farm machinery, it's good to have equipment breakdown coverage in the event that your machinery experiences an electrical or mechanical breakdown.

No matter how much insurance you have for your equipment, it's important to remember that you need to be fully insured yourself. Not all of your customers will know how to properly use the equipment you're renting, and you cannot control who actually uses the equipment after it's been rented. 

What Isn't Covered under Rental Store Insurance in South Carolina?

Your typical rental insurance policy will not cover any damage caused by flooding or tornadoes. Neither of these events is covered in the insurance policies shown above. You can purchase South Carolina flood insurance and tornado insurance separately, which is recommended for rental store companies in South Carolina. 

Your rental insurance policy will also not cover general wear and tear on the equipment you rent or damage that is caused by not properly maintaining your product. If the engine goes out in a machine and the insurance company determines that you haven't been performing proper maintenance, they could deny the claim. Some other things that are not covered by standard rental store policies are customer property that is being stored at your business and any fraudulent activity.

Benefits of South Carolina Rental Store Insurance

If you're renting out products or equipment to other people, much of your business operations is completely out of your hands. As soon as your product leaves your store, you're relying on the person that rented it to treat it properly, use it properly, and safely return it. There are a lot of risks involved. Rental store insurance provides protection for you and your customers. It's not only beneficial to keep your rental products moving in and out of your store, but also to protect you from being sued by a customer if they don't know how to properly use your equipment. For businesses that are based solely on renting out products to other people, rental store insurance provides a safety net so that your business doesn't go under from an unforeseen event or mistake. 

How Much Does Rental Store Insurance Cost in South Carolina?

Rental store insurance policies will vary based on the type of products you're renting, your store location, size, number of employees, and the risks your product presents. A video rental store can expect to pay less in rental store insurance than a farm equipment company, because the video store will not need as much liability coverage or equipment breakdown coverage. An independent insurance agent can help you pull a number of quotes to determine an affordable amount of coverage.

Why Use a South Carolina Independent Insurance Agent? 

Every business needs insurance, and rental companies need to make sure their assets are protected on and off-site. Understanding which policies will fit best for your store can be overwhelming. South Carolina independent insurance agents are experts in rental store insurance. They understand the necessary coverages and will pull quotes from a variety of carriers in your area. They can help you determine how much coverage you need for your rental store and for yourself.