Showman’s Public Liability Insurance – How to ensure you are protected
No matter how carefully you maintain and operate your equipment, you can never rule out the possibility of injury or damage to a member of the public or their property. You will be held to be liable at law, where the party who has suffered the loss is able to prove that:
- you owed them a duty of care (this would be the case in respect of persons using your rides, parents watching children on rides, or bystanders)
- that you have breached that duty
- loss was suffered as a result of that breach
Where faulty equipment is the cause of the injury, or if a ride happens to break whilst being operated, there is no need for the injured party to prove that you breached your duty of care. Liability will attach to you automatically.
Although it’s rare for something to go wrong, because of the nature of fairground rides and attractions, when it does, it’s not unusual for several people to be injured at the same time. In June of 2016, several people were thrown from a major ride in Scotland. None of the injuries were life-threatening, but damages may still be substantial due to the numbers involved.
Unfortunately, the possibility of a serious event cannot be ruled out. Recently a sudden gust of wind blew an inflatable 150 yards, resulting in the death of a seven-year-old girl.
Investigators took evidence from scientists about the weight of the ride, the type of weather, the ground underfoot, the moisture content and how the ride was tethered. The operators argue that had the weather been bad, they would have closed the ride. However, even if the case is successfully defended, legal fees could well run into tens, and quite possibly hundreds, of thousands of pounds.
If you need help and advice with your insurance call us on 0117 955 6835.
We know how seriously you take your responsibilities. Insurance is an essential part of your risk management, but you also want the cover to be there for the sake of customers should the worst happen. Public Insurance covers you for both legal fees and damages you are ordered to pay by a court of law, up to the limit of indemnity you select. At Park Insurance, some of our most frequent enquiries concern the circumstances in which your Showman’s Public Liability Insurance will cover you for the loan and operation of equipment. In fact, it’s cropping up so frequently that we decided to post some examples here:
1. I am scheduled to operate my ride at an event but won’t be there in person. The ride will be operated by my employees, one of whom also happens to be a family member. Will my Public Liability cover me?
There is nothing that requires you, as the owner of the business, to be present at every event. Your Public Liability Insurance will cover you in the event that you are held liable at law for the negligence of employees (this would normally be the case) while they are acting ‘in the course of their duties’. The fact that one of your employees is also a family member is immaterial. (If you employ any persons in relation to your business, please talk to us about Employers Liability Insurance.)
2. I am booked to operate a pitch at a Christmas Fayre, but my ride is undergoing maintenance. Will I be covered if I hire another item of equipment to replace it?
Your public liability insurance is arranged per specified item of equipment. There is a great variety of equipment, each with their own risks and premiums obviously vary. Even if you believe the ride you are hiring to be equivalent to the equipment that is undergoing repair, you should always let us know. You will need to let us have details of the hired-in equipment so that we can arrange temporary cover.
3. My daughter has a pitch at a local festival and finds she has room for another ride. She has asked to borrow my trampoline. Will my public insurance cover her for use of my equipment?
No. This is really no different from the situation when you are hiring equipment. The person or business operating the equipment must always have insurance in their own name. Your daughter will need to ask her Public Liability insurers to add that item of equipment to her policy temporarily.
3. In the same scenario, could I be held to be liable at law for injury caused by the use of my equipment?
Yes. If a member of the public were to be injured while using the trampoline, and it is found that the trampoline was faulty in some way, the subsequent claim for damages would be directed to the person or business operating the ride, in this case, your daughter. The fact that she didn’t own the equipment wouldn’t be a defence. If your daughter were to be found liable on the basis that she was operating faulty equipment, and didn’t have the necessary insurance in place, she would probably have no option but to claim against you to recover the damages she is ordered to pay.
4. Will my existing insurance cover me?
If you had failed to advise your insurers that you intended to hire or loan equipment to another party, your insurers might be able to avoid your claim on the basis that they did not agree to cover you for loaning out your equipment. If they agreed to cover the risk, they might apply terms such as asking you to enter into a formal contract, or issuing a disclaimer about the use of the equipment.
5. How can I tell if my daughter would be considered to be my employee? She occasionally works for me, but also has a business in her own name.
Your insurers would look at the contract that was in place with the local council or event organiser. Is it in your name or in hers? They would also consider if you were paying her a salary and/or who kept any profit.
6. Park Insurance arrange cover for both my business and my daughter’s business? Surely one of our insurances will pick up any claim that is made against either of us?
Since we arrange insurance for 75% of Showmen in the UK, and because our clients tend to recommend us to family members, this isn’t unusual. However, unfortunately, it isn’t safe to just assume that one of your insurances will pick up a claim.
Your public liability insurance only covers the liability of the party (or parties) named in the policy schedule. It won’t pick up claims for liability that attaches to another party. Your insurers would also be able to avoid a claim if they are not made aware of the precise equipment that you are operating and of all the business activities that you carry out. If in doubt, it is always safest to ask!
Call us now on 0117 955 6835.