Bouncy castle operators say they're facing an "insurance crisis" due to the lack of public liability insurance providers.
They say Government inaction on the issue has hit the industry badly.
The insurance is not a legal requirement for bouncy castle operators.
However, they say they'd much prefer to be covered by an insurer when hiring out their inflatable structures.
Now, any parents looking to hire a bouncy castle are being told to do so at their own risk.
Gerry Frawley of the Irish Inflatable Hirers’ Federation told Lunchtime Live this problem has been ongoing for two years now.
He explained: “We’re suffering an insurance crisis at the moment, where we have a lack of availability of public liability insurance. It has been going on for quite a while.
“We’re having discussions with various underwriters and insurance groups who are trying to help us. But it is affecting our industry in a negative way.”
He said the problems arose after the sole remaining insurance broker offering cover to the industry pulled out of Ireland back in 2019.
Normally, operators would be insured, but the current situation means that's not possible.
Mr Frawley said: “There is none available - we cannot buy public liability insurance.
“We’re making great efforts in that area… but the Government inaction on this has affected us badly. We’ve been agitating for change in regulation."
While there's no legal requirement for operators, Mr Frawley says there can be a "big legal question" whenever someone is injured on a bouncy castle.
He said: “We make all sort of efforts to make ourselves not negligent - most of the operators… will have the safety of their bouncy castle tested, and they will have taken every measure they can to make it as safe as possible for the users of the bouncy castle.”
He said he doesn't believe the industry should use safety disclaimers to cover themselves, as doesn't think "we can disclaim the rights of children if someone is being negligent".
However, he added that he does believe adults generally do need to take more responsibility in supervising children using bouncy castles.