Businesses that offer special occasion clothing to customers for a fee face particular risks. That is why we offer Formal Wear Rental Insurance programs tailored to their unique needs, including General Liability, Business Auto, Property, Crime, Workers’ Compensation and more.
If your business rents out formal wear, such as tuxedos and gowns, or costumes for parties, Halloween or theatrical performances, or even offer accessories and props for rent, we have an insurance program that suits your needs.
Formal wear and costume rental shops have liability risks and need protection from third-party claims and lawsuits. General liability insurance includes premises liability and product. Premises liability covers claims for any injuries to customers, vendors, delivery people or other visitors that occur on your property. Product liability covers products you sell or rent damage or injury to customers or their property.
Employees can easily sustain injuries such as cuts from box openers or tripping in disorganized storerooms or overcrowded aisles. Worker’s Compensation covers the medical costs incurred and pays any lost wages resulting from the injury and recuperation time.
Business auto risks for rental shops should be low unless employees drive to deliver orders, attend trade shows, or run errands to places such as the bank or post office. Personal auto insurance policies typically don’t cover vehicles driven for business purposes. Theft coverage should also be considered. If expensive formal wear is left in your parked vehicle it’s vulnerable to being stolen. Business auto will help cover such financial losses.
Fire can be a fairly high risk for formal wear and costume rental shops due to the electrical equipment, clothing and other materials on site. Property can also be damaged by severe weather, such as electrical storms, high winds and hail, or from mishaps in the building’s electrical or plumbing system. Property Insurance offers you a way to replace damaged items and make necessary repairs to the building. This helps you get back to business more quickly. Property insurance also covers loss of income if the business cannot operate while repairs are being made.
Crime Insurance covers losses caused by dishonest employees who may steal cash or money and securities through embezzlement. Property loss due to theft by employees is also covered. Crime Insurance is often commonly referred to as a Fidelity Bond.