The Insurance Knight Consultancy ‘s Guide to Hot Tub Hire Insurance
Hot tub hire has become an attractive business prospect for events companies in recent years, with relatively low start-up and running costs and a high return on investment. The market is growing, and hot tubs are no longer considered as an extravagant luxury reserved for only the very wealthy. Customers are renting hot tubs for birthdays, garden parties, and all sorts of other occasions.
This increase in demand has led to hundreds of companies competing for business and hoping to capitalise by providing a hot tub rental service. However, many of these companies fail to take out the correct insurance, meaning that they may not be fully covered against accidents, damage to property, or personal injuries.
What Type of Insurance is Required When Hiring Out Hot Tubs?
There are actually very few insurers or brokers who specialise in insurance for this market, and those who do offer hot tub hire insurance often have to wait for time-consuming referrals. However, The Insurance Knight Consultancy is able to provide speedy quotations and cover for your business.
Here are my recommendations for insuring your hot tub hire business:
· Public Liability Insurance – to protect against damage to any property or injury to persons at the customer's address. Some examples include garden ornaments being knocked over and broken; garden walls or fencing being damaged; water escaping from the hot tub and flooding the garden or home; or the hot tub deflating with people in it, causing injury.
· The minimum limit of indemnity is usually £1m with an excess of £250. Premiums for this level of cover start at £220. However, I would recommend at least a £2m limit of indemnity.
· Your insurance should also include Products Liability as standard, which would protect your business in the scenario that a customer had a reaction to the chemicals within the hot tub.
· If the business is a limited company with more than one director, then Employers Liability is legally required. The same is true if you are a sole trader or partnership with employees or labour-only subcontractors.
· You may also want to consider insuring for Material Damage; either on a standalone basis or with the liabilities. This covers your equipment while it is on-hire, and also when it is being stored (it needs to be in a secure location). This cover includes accidental damage and theft.
When Things Go Wrong
Of course, we never expect anything to go wrong, but unexpected accidents do happen sometimes. That's why it is vital that your business has the correct insurance in place.
· A 45-year-old man from Merseyside suffered burns to his face and eyes, after chlorine tablets used to treat the water caused an adverse reaction.
· A number of children were left with a bacterial infection after a hot tub party in Oldham. The hot tub was hired for a 12th birthday party, and the child's mother claims the bacterial infection was caused by the hot tub being dirty.
Our Top Tips For Minimising The Risk
1. You should consider having a proper set of Terms and Conditions or Contract to be used for the protection of both your business and the customer. On occasions when there is a dispute, businesses may have difficulty recovering their equipment from a client’s property. However, having an agreement in place minimises this risk. (I also collaborate with a specialist firm that offers this - contact me for their details.)
2. When taking out insurance, ensure that you declare all of the items being used by the business and that they are listed on the policy schedule. For example, you may also hire out gazebos, flooring, lighting, audio equipment, shower tents etc. alongside the hot tub. This is important as gazebos can blow away and cause damage at the premises or neighbouring premises and the insurer needs to know if they are covering supplementary equipment. Also declare if the hot tubs are being hired out in a commercial capacity; for example at festivals, nightclubs, village fayres etc.
3. Provide the customer with proper instructions on how to operate and look after the equipment.
4. Consider setting an age restriction, and perhaps refuse any hire where you know the customer intends for children to use the hot tub (as in the case with the children's birthday party above).
5. Ensure the equipment is regularly checked and maintained, so it's in top working order.
6. If your business keeps customer records, there is a legal requirement to register with the Information Commissioner Officer for Data Protection.
7. Finally, ensure that you have adequate insurance in place in case the worse happens.
For more information about hot tub hire insurance or to get a quote, contact us today:
Phone: 01324 217250
Knight Insure Ltd T/as The Insurance Knight Consultancy is an Appointed Representative of Warwick Davis (Insurance Consultants) Ltd who are authorised & regulated by the Financial Conduct Authority.