Equipment Security Deposit Policy
This Equipment Security Deposit Policy applies to all equipment hired from Backstage Warehouse Ltd (“Backstage Warehouse”, “we”, “us” or “our”).
The purpose of the security deposit is to protect Backstage Warehouse Ltd against loss, theft, damage, late return, failure to return, additional cleaning, missing accessories and other costs arising during the hire period.
1. Security Deposit Requirement
Backstage Warehouse Ltd may require a refundable security deposit before any equipment is released to the Customer.
The amount of the security deposit will be determined according to factors including:
- the type and value of equipment being hired;
- the length of the hire period;
- the overall value of the hire;
- the Customer's previous hire history;
- the location and nature of use; and
- any additional risk associated with the booking.
The required security deposit will normally be stated on the quotation, hire agreement or invoice.
Backstage Warehouse Ltd reserves the right to increase the required security deposit where the risk or replacement value of the equipment justifies doing so.
2. Payment of Security Deposit
The security deposit must be paid in cleared funds before the equipment is collected, dispatched or delivered, unless otherwise agreed in writing.
Payment of the security deposit is separate from:
- the booking deposit;
- hire charges;
- delivery and collection charges; and
- any other charges due under the hire agreement.
Failure to pay the required security deposit may result in Backstage Warehouse Ltd refusing to release the equipment.
3. Customer Responsibility for Equipment
The Customer is responsible for all equipment from the time it is collected, delivered or otherwise placed into the Customer's possession until it has been returned to and accepted by Backstage Warehouse Ltd.
During the hire period, the Customer must take reasonable care of all equipment and ensure that it is:
- used only for its intended purpose;
- operated by suitably competent persons;
- protected from theft, loss, misuse and avoidable damage;
- stored securely when not in use;
- protected from unsuitable weather, moisture and environmental conditions;
- returned with all supplied accessories, cables, cases, fixings and components; and
- returned by the agreed date and time.
4. Loss or Theft
If any hired equipment is lost, stolen or not returned, Backstage Warehouse Ltd may deduct from the security deposit the reasonable cost of replacing the equipment with an equivalent item.
The Customer may also be liable for:
- replacement accessories;
- delivery or collection costs;
- administration costs;
- loss of hire income where reasonably incurred; and
- any other reasonable costs directly arising from the loss.
Where the replacement cost exceeds the amount of the security deposit, the Customer will remain liable for the outstanding balance.
The Customer must notify Backstage Warehouse Ltd immediately if equipment is lost or stolen.
Where theft has occurred, the Customer may be required to report the matter to the police and provide Backstage Warehouse Ltd with the relevant crime reference number.
5. Damage to Equipment
The Customer is responsible for damage occurring during the hire period, excluding reasonable fair wear and tear.
Where equipment is returned damaged, Backstage Warehouse Ltd may deduct from the security deposit the reasonable cost of:
- inspection;
- diagnosis;
- repair;
- replacement parts;
- specialist labour;
- transport;
- manufacturer or authorised repair centre charges; and
- replacement where repair is not economically viable.
Where damaged equipment cannot reasonably be repaired, the Customer may be charged the reasonable replacement cost of an equivalent item.
Any amount due above the value of the security deposit will remain payable by the Customer.
6. Fair Wear and Tear
The Customer will not normally be charged for minor deterioration arising solely from normal and reasonable use of the equipment.
Fair wear and tear does not include damage caused by:
- misuse or incorrect operation;
- dropping or impact;
- water or liquid damage;
- exposure to unsuitable weather;
- overloading;
- incorrect power supply or electrical connection;
- unauthorised modification;
- negligence;
- poor handling or storage;
- failure to follow instructions; or
- use outside the equipment's intended purpose.
7. Missing Items and Accessories
All equipment must be returned complete with any accessories originally supplied.
This may include, but is not limited to:
- cables;
- power supplies;
- adaptors;
- remote controls;
- cases;
- stands;
- clamps;
- fixings;
- covers;
- batteries;
- chargers;
- connectors; and
- other supplied components.
Backstage Warehouse Ltd may deduct the reasonable replacement cost of missing items from the security deposit.
8. Cleaning Charges
Equipment must be returned in a reasonably clean condition.
Where equipment requires excessive cleaning as a result of the Customer's use, Backstage Warehouse Ltd reserves the right to deduct reasonable cleaning costs from the security deposit.
Additional charges may apply where equipment is returned contaminated with substances including paint, food, drink, mud, adhesives, confetti residue, smoke fluids, chemicals or other materials requiring specialist cleaning.
9. Late Return
Equipment must be returned by the agreed date and time.
Where equipment is returned late without prior agreement, Backstage Warehouse Ltd may charge additional hire fees.
These charges may be deducted from the security deposit.
If a late return affects another confirmed hire or booking, the Customer may also be liable for reasonable additional costs directly caused by the late return.
10. Failure to Return Equipment
If equipment is not returned by the agreed return date and Backstage Warehouse Ltd has been unable to agree an authorised extension with the Customer, the equipment may be treated as unreturned.
Backstage Warehouse Ltd may:
- continue to charge hire fees until the equipment is returned;
- deduct applicable charges from the security deposit;
- invoice the Customer for the replacement value of the equipment;
- recover reasonable costs associated with recovering the equipment; and
- take appropriate legal action to recover the equipment or outstanding sums.
Failure to return hired equipment may also be reported to the relevant authorities where appropriate.
11. Inspection on Return
All returned equipment is subject to inspection by Backstage Warehouse Ltd.
Acceptance of equipment at the point of return does not necessarily confirm that the equipment is complete or free from damage.
Where damage, faults or missing items are not immediately apparent, Backstage Warehouse Ltd reserves the right to notify the Customer after inspection and make an appropriate deduction from the security deposit.
Any deductions will be based on reasonable costs incurred or expected to be incurred.
12. Refund of Security Deposit
Where all equipment is returned:
- on time;
- complete;
- in satisfactory condition; and
- without outstanding charges,
the security deposit will be refunded to the Customer.
Refunds will normally be made using the original method of payment where reasonably possible.
Backstage Warehouse Ltd may retain the security deposit for a reasonable period after equipment has been returned to allow sufficient time for inspection and testing.
13. Deductions from the Security Deposit
Backstage Warehouse Ltd may make reasonable deductions from the security deposit for amounts due under the hire agreement, including:
- damaged equipment;
- lost or stolen equipment;
- equipment not returned;
- missing accessories or components;
- additional hire caused by late return;
- excessive cleaning;
- recovery costs;
- unpaid hire charges; and
- other reasonable costs directly resulting from a breach of the hire agreement.
Where deductions are made, Backstage Warehouse Ltd will provide details of the charges where appropriate.
14. Security Deposit Does Not Limit Liability
The security deposit does not represent the maximum amount for which the Customer may be liable.
Where the amount owed to Backstage Warehouse Ltd exceeds the security deposit, the Customer remains responsible for paying the outstanding balance.
For example, if equipment with a replacement value of £5,000 is lost and the security deposit held is £1,000, the Customer may remain liable for the remaining reasonable replacement cost and any other applicable charges.
15. Insurance
The Customer is responsible for ensuring that appropriate insurance is in place where required for the hired equipment.
Payment of a security deposit does not constitute insurance and does not remove the Customer's responsibility for loss, theft or damage occurring during the hire period.
Backstage Warehouse Ltd may require evidence of suitable insurance for higher-value hires before releasing equipment.
16. Disputes
If the Customer disputes a deduction from the security deposit, the Customer should contact Backstage Warehouse Ltd as soon as possible, providing details of the reason for the dispute.
Backstage Warehouse Ltd will review the matter and may provide supporting information such as photographs, inspection records, repair estimates or replacement costs where appropriate.
17. Statutory Rights
Nothing in this policy is intended to exclude or restrict any legal rights or liabilities which cannot lawfully be excluded.
Where the Customer is acting as a consumer, applicable consumer protection legislation will continue to apply.
18. Contact
Questions regarding security deposits, equipment returns or deductions should be directed to:
Backstage Warehouse Ltd
Website: www.backstagewarehouse.co.uk