legal requirements for toy hire business?!

[melmarionw]

Hi there,

If anyone could give me any advice at all, I would really appreciate it.
Please forgive me for being new to the start up business process, I have done a lot of research but still have many questions that are probably silly to ask..

I am in the planning stage of setting up a children's toy hire business (for use at birthday parties etc) - it does not include bouncy castles.

I intend to create a document showing the checks that have been carried out prior to the equipment being hired, to ensure and show the safety of every toy, to account for expected wear and tear and to enable me to identify damage that requires replacement of the toy etc, in addition to requiring the customer to sign a document agreeing to supervise the safe use of equipment during the event, what safe use I define as, and agreeing to taking responsibility for accidents occur from incorrect use. - Does this sounds reasonable??

I will have public liability insurance to cover the business in the event of legal issues regarding injury etc arising, although I have not researched this too much yet at this stage.

I wondered if anyone knew of any other legal requirements for the toy hire sector that may be applicable. I know there are other insurance types like stock in transit etc but I'm thinking about essential legal requirements in terms of insurance/legal safety requirements for having toys that will be repeatedly used etc.

Also, I may be really stupid to ask this but has anyone ever heard of taking out public liability insurance like two months after starting the business? Is this even possible? I can appreciate that I wouldn't have any legal cover during that time.

Thank you in advance.
: )

 

[Simply Business]

Hey

Firstly, in terms of your public liability, it might prove difficult in finding an insurer willing to cover you, as your toys will (presumably) be left and not under your supervision.

Try http://www.biba.org.uk/ - they'll be able to point you in the direction of insurers that can help.

And secondly, that's not a stupid question to ask at all! You're free to take out public liability when you wish, although - as you mentioned - you wouldn't be covered in that time.

Hope that helps

 

[melmarionw]

Thank you ever so much for your reply, I will have a look at the website now.

 

[Simply Business]

No problem at all, good luck with your business!

 

[carl.atkinson]

I would imagine that the major legal issue which would be unique to your proposed business model (as opposed to businesses in general) would be the defective product issue. You would need to take steps to ensure that you had mitigated the risk of exposure to a legal claim in the event that the business supplies a toy which is some way defective and that the toy causes an injury to a child.

I would assume that if any injury was caused as a consequence of a defective design of a toy you would attempt to pass liability on to the manufacturer. But you would need to make sure that this would be possible (you might have to notify the manufacturer that you were purchasing the product for commercial use). In a way your model has similar legal risks to institutions that provide children with toys i.e. schools, nurseries etc.

 

[linda@premier]

Hi, I hope I can help! As Public Liability isn't a legal requirement you can take this out whenever you wish to. But I would suggest this is done asap as this is probably your biggest exposure. Should your equipment injury someone or cause damage to their property this could result in a large claim against you.

In terms of your equipment on hire, I would suggest you create a terms of business, within this (subject to legal guidance of course) it is possible to limit your liability. It is also possible to agree that your customer arranges insurance whilst on hire. This is the norm for example when builders/contractors hire equipment for a job, but dependant upon the specifics of how you will operate/work it may not be a viable solution for you. Despite that, it would be possible to arrange cover where you insure the equipment on hire.

One other policy which is worth a mention is Directors Liability or Management Liability. This covers you as a person and protects your personal assets should someone make a personal claim against you. Such as the Health & Safety Executive.

If I can be of any further help please let me know, I'm an insurance broker and would be happy to assist sourcing quotations when you're ready.

Best of luck with your business.

 

[melmarionw]

Thank you both for your replies.

Linda, if I could ask you a question, or anyone that might know - (it comes from considering both posts together!) do you think an insurer could provide public liability insurance to cover the use of toys (that would usually just be used within the home) being hired (and rehired) for private events?

Is this something an insurer would even consider, generally, given the amount of risk mentioned above? (defective design of a toy to begin with/toy not put together properly before being hired out/safe use not monitored by person hiring equipment which causes injury to a child etc)

It's not something I can search for on insurance websites, due to the nature of hiring out toys, and I am worried that I don't have the correct information to make a detailed claim at this stage - if you wouldn't mind letting me know what kind of information I'd need to prepare, that would be great.
I'm wondering now will I even be able to get insurance?

Although, most bouncy castle hire companies offer toy hire, usually as an add on to bouncy castle hire, and most soft play companies offer toy hire in addition to soft play equipment, so they must have found insurance to cover use of their toys?

Thank you in advance : )

 

[linda@premier]

Yes that would be possible, I’d be happy to discuss this further, let me know when is convenient to call if you would like to discuss.
In the main insurers will want to know your business plan and projections and your experience or knowledge of the industry. A list of typical toys you provide and confirmation whether these are all branded products. Typically toys will have to conform with European standards when imported and sold within the UK. Assuming all products have this standard then the final bit of information is how you intend to maintain and inspect the toys to avoid defective toys being hired out.

 

[Simply Business]

If you're struggling for information, I'd recommend giving http://www.biba.org.uk/ a ring. Unlike insurance brokers (who are non-advisory bodies) they can give you information and answer these types of questions

Hope that helps

 

[TheGuru2010]

Hi Op,

hope your well, what your post doesn't mention is what exactly the "toys" will be, you state not bouncy castles but I thought this would be target market for kids play equipment?

If you can advise on the above that would be a good help to provide further advice. You will need to understand risk assessments for all equipment for each hire, you will need to do a heck of a lot of research into safety & procedures.

the following may help & there is some further links at the bottom of the page (I know this does relate to bouncy castles but I would imagine a lot of the associated risks remain the same).

http://www.rospa.com/leisuresafety/adviceandinformation/leisuresafety/bouncy-castles.aspx

Before you hire out any equipment I would certainly make sure you have public liability cover in place & make sure this covers all business activities carried out.

If you want to have a chat about the insurance drop me a pm or give me a call & we can look at what cover you may require.

Keep us posted

Jamie

 

[KostaNaza]

I am not sure if I will get any responses to a post back from 2014, but can you advice what was the final resolution for public liability insurance on rental kids equipment ? I am going true the same issue right now and any advice will be much appreciated.
Thanks in advance
Konstantin

 

[Simply Business]

Hi @KostaNaza, what type of equipment are you renting? Also, many insurers will struggle to cover you if you leave the equipment and then come back for it (rather than supervising) as the risk is perceived to be bigger.

The more info you give us the better we can help

 

[KostaNaza]

@Simply Business

I have imported electronically equipment from outside the UK. It is a combination of CE certified projector and computer that does a projection on sand. It will be sort of a high tech sand box.

Plan to rent it out to nurseries and museums where they will be operated without or in some cases with supervisor. I made my research and realised that it will be difficult to obtain the liability insurance. Safety is paramour for me and my business therefore all required safer precautions will be in place prior to renting units out.

Hope it gives you an idea of what I am dealing with. Looking forward to hear your response and/or ideas.

Regards
Konstantin