Alviso Business Shuts Down Due to Insurance Crisis
Laine’s Bait and Rentals, a historic family-owned business in San Jose’s Alviso neighborhood, is closing its storefront due to rising liability insurance costs. The shop, which opened in the 1950s to serve anglers, has been significantly impacted by the challenges facing small businesses in California.
“We haven’t been able to rent out kayaks in over a year,” Laine told San José Spotlight. “We could make a couple hundred thousand dollars a year if we could rent out, and it would be run by four or five employees.”
Owner Kyle Laine explained that insurance issues forced the closure of the kayak rental portion of his business. This loss of revenue, combined with increasing insurance premiums, has led to the decision to sell the building at 907 Elizabeth St., which dates back to 1925 and is listed at $1,050,000. The building is also a historical landmark.
Richard Santos, a longtime resident and advocate for the Alviso community, pointed to the area’s neglected condition as a factor potentially contributing to the insurance challenges faced by businesses.
“We’ve had at least 10 fires in the last few years … I’ve taken code enforcement officials with me around the neighborhood to show everything that should be addressed, and they did nothing,” Santos told San José Spotlight.
The closure will not be complete. Laine’s Bait and Rentals will continue to offer services through a small building next door, including a fish and game machine for licenses and tags, along with a refrigerated machine for fishing tackle.
Tom Manzo, founder of the California Business and Industrial Alliance, noted that general liability and property insurance costs have risen dramatically in the state.
“Many small businesses aren’t able to absorb those costs,” Manzo told San José Spotlight.
Leah Toeniskoetter, President and CEO of the San Jose Chamber of Commerce, echoed the concerns about rising insurance costs, especially in outdoor recreation industries.
“Addressing this issue requires collaboration at the state level to ensure insurers remain in the market and businesses can access the protection they need to operate successfully,” she said.
