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Opening up a mobile bike rental shop, DO I NEED LIABILITY INSURANCE OR JUST A WAIVER?

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Opening up a mobile bike rental shop, DO I NEED LIABILITY INSURANCE OR JUST A WAIVER?

Old 08-25-14, 09:18 PM
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thosebikes
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Opening up a mobile bike rental shop, DO I NEED LIABILITY INSURANCE OR JUST A WAIVER?

i am opening up a bike rental business in texas

DO I NEED INSURANCE OR CAN I JUST GO TO A LAWYER AND HAVE HIM WRITE ME UP A VERY GOOD WAIVER AND HAVE EVERYONE SIGN?
ALSO DO I NEED TO BECOME A LLC OR A SOLE PROPRI OR ANY OF THAT?
I KNOW I HAVE TO GET A TAX ID AND ALL THAT OF COURSE BUT INSURANCE IS HARD TO FIND AND IM ONLY STARTING SMALL WITH 10 BIKES AND THEN I WILL GROW EVENTUALLY, I WILL BE RENTING SINGLE SPEED CRUISER BIKES WITH COASTER BRAKES AND A FEW GEAR BIKES WITH REGULAR BRAKES BUT I AM TRYING TO START SMALL, VERY SMALL SO IF I CAN GET A WAIVER AND DO IT THAT WAY THEN THAT WOULD BE AWESOME

ANY THOUGHTS BY PEOPLE WHO RENT BIKES OR WHO HAVE RENTED BIKES WOULD BE GREAT THANKS, IS INSURANCE REALLY NEEDED OR CAN THEY JUST SIGN A WAIVER?
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Old 08-25-14, 09:26 PM
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Talk with an attorney and good insurance agent to find out the coverage you will need. As a former business owner, I would not be without it. Waivers generally are not worth the paper they are writen on. This is not the place for legal advice.

Your very question causes a concern about your business acumen, IMHO.
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Old 08-25-14, 09:27 PM
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1. Talk to an Attorney.
2. A waiver ain't gonna stop me from suing you should I get hurt due to improper maintenance of one of your bikes.
3. Yes, LLC.
4 See the first item.
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Old 08-25-14, 09:31 PM
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My company was the defendant in a lawsuit. The liability insurance paid for the defense attorney' fees - in the tens of thousands of $$. Do you have that kind of $$?
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Old 08-26-14, 12:18 AM
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1) You don't need to shout at us.

2) Like the others have said, this is not the place for legal advice. Talk to your lawyer.

3) If I were opening a business like that, I wouldn't want to do it without insurance.
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Old 08-26-14, 12:21 AM
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A waiver can only waive the rights of the person signing it (and can't always waive all of those rights.)

Your business could easily be subject to claims from someone other than the person who rented the bike, for example:

* A third person who rides the bike that your customer rented
* The other party involved in a collision, if they think you were negligent in letting that customer rent a bike, or in the maintenance or equipment of the bike.
* The health insurance company covering either your customer or the other party involved in a collision.
* The spouse, partner, or children of customer who is killed or incapacitated, for loss of the breadwinner's income, or loss of consortium, or wrongful death, or mental anguish, or the cost to care for an invalid...

Your customer could also claim the waiver is invalidated by fraud or misrepresentation on your part, or is contrary to public policy.

Even if you can defend against all those claims, who pays your attorney costs?
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Old 08-26-14, 12:59 AM
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I know this sounds condescending, but just asking these questions means you are under-qualified to open such a high-risk business.

- Mark
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Old 08-26-14, 01:04 AM
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I know this sounds condescending, but just asking these questions means you are under-qualified to open such a high-risk business. You want a carefully-crafted waiver AND the protection of a corporation AND proper business insurance. Each of these is going to require a fair degree of time/expense to do properly. If you don't have the startup capital to make it work, look into a different business. Renting any vehicle to strangers, even a cruiser bike, is serious business with serious legal consequences, especially in the litigious USA.

If you haven't done so yet, I'd also try and find others who are doing the same business and ask for advice, even if you have to go quite a ways away to find someone who will talk to you.

- Mark
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Old 08-26-14, 01:34 AM
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I've been in the car rental business for almost 20 years now. The risks of renting any type of vehicle to the general public are enormous. Please heed what everyone is telling you.
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Old 08-26-14, 04:34 AM
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Find a Small Business Administration office The U.S. Small Business Administration | SBA.gov. There you will find a wealth of information about starting a small business and they usually have a mentor program in which active or retired businessmen will provide guidance.

Waivers are not much protection for a business, at most they might discourage a few minor claims, but the second someone with a serious injury goes to a lawyer, you'll be SOL. In this sue happy society, I wouldn't loan my neighbor a hammer without liability insurance.
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Old 08-26-14, 11:57 AM
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Originally Posted by DnvrFox View Post
Talk with an attorney and good insurance agent to find out the coverage you will need. As a former business owner, I would not be without it. Waivers generally are not worth the paper they are writen on. This is not the place for legal advice.

Your very question causes a concern about your business acumen, IMHO.
See if your local college offers a course in business before you go one step further. Take the course THEN decide what's next for you.

DnvrFox is right on the money with good advice..........
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Old 08-26-14, 02:24 PM
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Originally Posted by no1mad View Post
1. Talk to an Attorney.
2. A waiver ain't gonna stop me from suing you should I get hurt due to improper maintenance of one of your bikes.
3. Yes, LLC.
4 See the first item.
+1
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Old 08-26-14, 02:29 PM
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Originally Posted by thosebikes View Post
i am opening up a business
You need insurance. You also need to learn how to properly write. I honestly didn't even read the rest of your post it was so bad. Luckily the first sentence, along with the thread title, was all I needed.
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Old 08-26-14, 03:45 PM
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Originally Posted by thosebikes View Post
this is a forum
Aye, it is- complete with Rules and Regulations- http://www.bikeforums.net/forum-sugg...ad-please.html
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Old 08-26-14, 03:47 PM
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Originally Posted by thosebikes View Post
right on sounds good, thanks to everybody for answering the questions
Sounds like a good note to close the thread on

ETA: Some clean up was done as well.
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