I am in the process of starting an event decor rental business. I’m typing up a contract (rental agreement) and I would like to include a damages policy. Right now, renters are required to pay a 25% deposit to secure their rental booking. The challenge is how to obtain payment for damages. I’ll mainly be renting out tableware, decorative items cake stands, large stands etc… I was looking into square for credit card processing, to be able to take the replacement cost afterwards for anything that’s damaged/lost.

But as we are just starting out, I’m not sure if this would be the most cost effective way to do it. Not sure if it would worthwhile given the added cost and hassle. I’ve heard of some rental companies offering insurance for an extra fee to cover for damages.

This has been my main ‘hold up’ from starting the business, as some of the rental items would be hard to source for a replacement/ or come up with a replacement cost. Any advice on the best way to go it would be appreciated