Anyone looking to start something a little bit out of the ordinary should consider starting a dunk tank rental business. This business offers a vast range of benefits including limited competition, low start-up cost, ability to start and run it from home, flexible business hours, viable growth and franchise potential, little or no inventory, minimal overheads, and encouraging profit potential.

Your ideal clientele base will include sports associations, charities, business associations, schools, fund-raising consultants, special event planners, caterers, kid’s party planners, and community organizations. Note that in this line of business, two things will help ensure the dunk tank rental business is profitable.

The first is to rent the dunk tank, and the second is to ensure that both your clients and your business are well protected. As long as these two objectives can be reached, there is no limit to the amount of success this business can reach. To achieve the first business objective, your dunk tanks need a substantial target market in terms of rental.

To achieve the second objective, your dunk tanks need to be safe for all participants and your business should be adequately protected from the risks associated with this sort of business. Have it in mind that both can be accomplished with extensive planning, research, design, construction practices, material choice, and adequate business insurance.

Getting adequate dunk tank rental insurance can mitigate your losses and help your business maintain its growth despite the claims and lawsuits that might arise. You also have to consider the potential risk of someone getting injured using the tanks you rented to them. A good insurance package will surely limit the amount of liability you face and therefore your losses, ensuring that you can continue to grow your business.

Whether you rent dunk tanks on a short or long-term basis, offer delivery and pickup services, or have different equipment payment options, your rental business will be tasked with ensuring your equipment stays in top condition at all times, and having the right insurance can save you from financial devastation.

Basic Insurance Needed to Start or Run a Dunk Tank Rental Business

Note that there are different types of liability insurance to consider when seeking to protect your dunk tank rental business. You have to understand that being uninsured puts you as the owner, your employees, and much of the company’s assets at risk. Have it in mind that having the most basic liability insurance policy can save your business a lot of pain, time, and money later.

  1. General Liability Insurance

This is the most basic form of insurance and it covers the most prominent types of lawsuits. For instance, property lawsuits involving your customer’s property being damaged by your dunk tank accessories, installation, or employee recklessness are covered under general liability insurance.

Also note that this insurance policy safeguards you and your business from most lawsuits that come from a third party, especially if they get hurt by your dunk tank. This type of insurance is crucial for dunk tank rental businesses and should be considered the bare minimum insurance one has to obtain for their business.

  1. Property Insurance

Note that property insurance will protect your rental equipment and other assets contained in your business if damaged or destroyed by perils like fire, theft, water, etc. Property Insurance can help repair and replace parts of your inventory that get damaged at different events. You may want to consider infusing vandalism and malicious mischief protection into your property insurance policy.

  1. Commercial Auto Insurance

A good number of dunk rental businesses transport their dunk tanks to and from customer locations using company vehicles. Have it in mind that any vehicles that are used for this purpose will have to be insured with commercial auto insurance.

This coverage should extend to your employees who use company vehicles since it helps with repairing or replacing property not owned by your rental company but damaged by one of your vehicles. Commercial auto insurance is available by itself or as part of a package policy.

  1. Umbrella Insurance

Commercial umbrella insurance is known to offer a secondary level of liability protection for certain claims, especially expensive ones. Note that once basic policy limits are attained, this insurance may offer additional protection. You have to understand that the extra protection offered by this insurance is very necessary when renting dunk tanks and other party essentials.

Accidents involving certain rented equipment can escalate into catastrophic injury or even death, and the lawsuits as a result of such accidents are often very expensive. This insurance makes available a cost-effective way to protect your business against potential lawsuits like these. This type of insurance is available as a standalone policy or as part of a package policy.

  1. Business Interruption Insurance

Truth be told, recovering from a disaster or other incident can be a very daunting process for any business, and revenue may reduce drastically during that process. Business interruption insurance is known to make available supplemental income for businesses within covered disaster recoveries.

If your dunk tank rental business, for instance, doesn’t have enough cash reserves, this coverage could ensure that the business survives a prolonged disaster recovery. Business interruption insurance is available through BOPs

  1. Inland Marine Coverage

It is pertinent to note that your commercial property and equipment insurance won’t cover your dunk tanks unless it’s on your property. To ensure adequate protection of your investment and inventory, you’ll need to purchase inland marine insurance.

This policy sees to moveable properties while they are in transit and while they are stored on another site outside your own property. For instance, if your tank is damaged, stolen, or vandalized when it’s off your premises, inland marine insurance will cover the repair or replacement expenses.

  1. Worker’s Compensation Insurance

If you intend to employ a staff to help in running your dunk truck rental business, then you also need to obtain workers comp. For instance, if an employee gets injured while delivering a dunk tank to a client, workers’ compensation will help to pay for the medical expenses, coupled with any wages the employee may lose if he or she is unable to work while recovering. While your staff is well trained, sometimes accidents can happen on company time, so it is important to be prepared and well insured.


Although you have dunk tank rental insurance, you might not be entirely protected against all risks. Have it in mind there are many types of insurance, and they offer varying coverage for your dunk tank rental business. Also note that the amount of coverage can also vary depending on how much protection you want, your unique operational risks, and your budget.

Note that two insurance policies will look identical even if you purchased the same types of insurance. In addition, your business should have an attorney-approved rental agreement in place to allocate the responsibility of damage or loss of your rental items. This agreement should also address liability claims and the responsibility of payment of those claims.