New 'Babysitter marketplace' service - how to protect from liability?

Discussion in 'Business Accounting, Tax & Legal' started by FinnMcCool, 13th May, 2017.

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  1. FinnMcCool

    FinnMcCool Active Member

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    Hi everyone!

    I'm creating a new 'Babysitter marketplace' service. It's where babysitters can register a profile and parents can search for them and make bookings.

    I have been careful to ensure this is simply a marketplace, where my service only introduces two parties to conduct business, and not a babysitting agency (nor are the babysitter considered employees, wear uniforms, or anything like that - it's more like Uber). I do however make a very small commission (5%) on each booking.

    I have a separate bank account, separate email address, website however I re-used an old ABN I had in my own name (well, I actually tried to make a new one, but the government told me I already have one and should use that!).

    I can see exisiting babysitter services such as FindABabysitter.com.au that are operating and are very similar.

    What should be my next steps as far as protecting myself here? Obviously I'll have T&Cs and try and spell it out every at every opportunity that I cannot accept liability for the babysitters on the site, however I just want to make sure I've done everything I possibly can.

    I'm happy to sit down with a lawyer, but I don't want to be scared away of doing this due to liability given there are other websites out there doing the same thing just fine.


    FMc.
     
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  2. Marg4000

    Marg4000 Well-Known Member

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    You will need a massive insurance policy. AirBnB and Uber carry huge insurance in case things go wrong.

    You are introducing people and can't just wash your hands if something goes wrong. You are introducing a babysitter and a family and therefore cannot avoid some responsibility.

    Things will be "just fine" until the $@&&$ hits the fan and all hell breaks loose.

    Make sure you get very good legal advice.
    Marg
     
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  3. Zoolander

    Zoolander Well-Known Member

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    Sounds like a great business idea.
    Check out how Airtasker handles these kind of services, and whether the person has to be certified in something (childcare?) before being able to operate as a babysitter. Have a safety net for worst case scenarios like a babysitter from your service killing or molesting a child etc etc- need to have the right cover and blame deflection to weather these kind of hiccups.

    All the best :)
     
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  4. The Falcon

    The Falcon Well-Known Member

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    WTF.
     
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  5. Zoolander

    Zoolander Well-Known Member

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    Yeah its probably an extreme example to toss out so casually, but nonetheless necessary to consider for business. apologies if it offends anyone, especially those who have gone through something like that.

    Been through a couple of PR disasters over the natural course of work- tends to make one insensitive to what would normally be outrageous or uncomfortable.
     
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  6. FinnMcCool

    FinnMcCool Active Member

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    Hmmmm... FindABabysitter.com.au, the largest Babysitter marketplace / jobs site in the country doesn't have any insurance. Same same with Gumtree and Facebook, where many babysitters find work.

    I'll look into getting the insurance, if it's just Public Liability it's not too expensive anyway (i.e. if a babysitter twists her ankle while at a parents house, as an example).

    Insurance against any form of abuse is basically impossible/prohibitive in cost.

    Find a Babysitter terms are:

    That's the approach I want to take.

    I mean, if someone went on a Tinder date, and was robbed or something, they wouldn't try and complain to Tinder - Tinder can't possibly expect to vet every member.

    My thoughts are as long as I 'reasonably' do my best to make sure everyone is safe (which is one of those undefined things - say check/store IDs and so on), I should be OK. Naturally I will speak with a lawyer, but just wanted to hear peoples thoughts.
     
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  7. FinnMcCool

    FinnMcCool Active Member

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    Thanks Zoolander!

    I've previously done the research, and there are no special requirements to being a babysitter, apart from minimum working ages. Having said that working with children checks, police checks, first aid certs and education in childcare are all desirable.

    The spirit behind the app was to get back to simple, basic, neighbourhood babysitting, and the app uses peoples social networks to do this. This app sits above Gumtree but below an Agency in terms of price and service. It tries to connect you to your friends trustworthy younger sister (who wouldn't have a diploma of childcare, but only wants $20 per hour), rather a random stranger with a 5 star review.

    I have checked out Airtasker, and can see they use a company called Modern Risk Solutions, which I have emailed. Great suggestion, thanks.

    I note that Airtasker does have $20M public liability insurance for 'covered activities' (babysitting not being one of them).

    Keen to hear any other suggestions :)
     
  8. David Chin

    David Chin Member

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    I have worked with clients that have established online marketplaces. I would encourage you not to be scared away - the focus should be on understanding your exposure and approaches to managing risk in a practical way.

    I am happy to suggest insurers for you although my clients are using well-known insurers anyway.

    Good luck with your venture.
     
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  9. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Pedo magnet, be very careful.
     
  10. Biz

    Biz Well-Known Member

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    I would be careful. Very careful. You can put a waiver on your site but waivers are pretty much useless when it comes to minors from what I understand. For a waiver to work it needs to be able to be understood by the person using the service. In this case it is the parent BUT it is the child that is actually receiving the service and a child wouldn't understand that waiver...
     
  11. Ace in the Hole

    Ace in the Hole Well-Known Member

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    This is one of the situations where I would favour good old fashioned service, and go by talking to real people face to face and getting references from friends or people you know well, and even this is risky.

    Inviting and trusting strangers, who might not be who they say they are, from the internet to look after your own defenseless and innocent kids is crazy, in my opinion.
     
  12. Biz

    Biz Well-Known Member

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    But think how much money you could save!!
     
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  13. Blacky

    Blacky Well-Known Member

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    +1
    Just so you can spend a night out? no thanks.
     
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  14. Stoffo

    Stoffo Well-Known Member

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    That is the mentality of people these days :rolleyes:
    Even with their own kids :oops:
    Take the cheapest price, yet scream when it all goes wrong :eek:
     
  15. wylie

    wylie Moderator Staff Member

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    You have to be careful even with friends and family.
     
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  16. Foxy Moron

    Foxy Moron Well-Known Member

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    Agree.

    So you’ve spotted an opportunity to make some money, placing vulnerable people in high risk situations, but don’t believe you should have any comebacks. Seriously ?
    And you think Tinder is a great business model to follow ?

    The reality is if you enable the problem, you will own the problem. Regardless of you thinking you can avoid litigation (you can’t) have you considered how you are going to deal with the TV crews and bikie gangs on your doorstep when a young person gets assaulted and you innocently played a part.

    Think it through. This is not merely an online marketplace despite what you think.
     
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  17. WattleIdo

    WattleIdo midas touch

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    Anyone else find this strange - zoolander apologising on behalf of mccool?
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I haven't read any replies but...

    There are basically 3 ways to protect yourself.

    1. Have a limited liability company set up and operate the business. Sounds like you a a second trader so wide open.

    2. Contracts. Have proper contracts with baby sitters and the client ts seeking them.

    3. Insurance
     
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  19. FinnMcCool

    FinnMcCool Active Member

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    I've decided I should personally interview each babysitter. I can also make Working With Children Checks mandatory (and verify them).

    Unsure what to do re: the parents? If I have a minimum age of 18 for the babysitters, that would avoid parent pedo's although obviously there is still the risk of parent -> babysitter abuse/assault.

    I could made ID mandatory for parents also, although all of these extra requirements are barriers to entry for my users - who could just go sign up to FindABabysitter.com.au (who don't ask for any form of ID or verification at all).

    Wouldn't a parent accept liability on behalf of the babysat child in this case? The agreement would be between the service and the parent, surely?

    The service builds trust by analysing users social networks and finding babysitters (and parents) who are friends of friends. This way it doesn't connect you with a total stranger, it connects you with someone that can be vouched for via a mutual friend. This is the unique selling proposition of my service.

    (Having said that, no other babysitting service has this, and they all have thousands of active users, are successful so it seems people do use them).

    Perhaps I should build a way for parents to be able to interview babysitters into the app? I have designed an in-built video chat feature to do this (or a video interview), although that would be a feature for post go-live (the app will never launch if I keep adding functionality to it :) ).

    Thank you all for the comments, this is really helpful.
     
  20. FinnMcCool

    FinnMcCool Active Member

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    I don't like to think of it like that! I'm trying to create a way to give people who can't afford agency babysitters another option. An agency will charge a minimum of $90 just so Mum and Dad can go to their friends engagement, 40th or other important event - which is why many don't go. This leads to social isolation, poor relationships, less community cohesion or financial stress.

    Call me old school (late 30's), but I feel we've all become a bit too paranoid about this. I'm trying to create more neighbourhood (or social network) based babysitting like it was when I was young and like it works in many other non-Western countries around the world today (the system users socials networks to find friends of friends).

    Sure there are bad people out there but with some smarts this risk can be greatly reduced. Mind you - I grew up riding my bike to school (~2kms, by myself), the only rule was I had to be home before sunset. There were just as many pedo's then as there are now.

    I don't think that I shouldn't have any comebacks, my understanding is it's all about appropriately dealing with the risk and going to an right amount of effort to make it safe for everyone who users it (whilst still useable). I'm posting on here to do that.