Why you should tap into the expertise of an insurance broker
Comparison insurance websites are useful. But how satisfied are you with their advice and service?
Disruption has been a constant theme for hotel owners thanks to online booking platforms, home-sharing, Airbnb, and, more recently, the pandemic. So, how can you bolster your business against the risks of potential losses?
First, hotel ownership opens a broad and deep range of risks, including:
A major economic risk to hotels, particularly international hotel chains, is brand-jacking where another company assumes or acquires your online brand identity. Others may gazump your brand name on pay-per-click Google Adwords, for example. Effectively, it means competitors can intercept online traffic to your hotel website, meaning less business for you.
As well, online global travel agencies could ask you to pay inflated or unnecessary commission payments, or you risk losing about 40% of your bookings. If a scammer has duplicated your website and unsuspecting customers book through there, you can reduce your risks before that happens. Do this by bidding on your hotel brand, ensuring your SEO campaign uses your official website as the landing page. Another option is to file a trademark infringement complaint to Google.
Here are other ways your hotel business could suffer potential losses. If your operations or staff, for example, cause injury to or damage the property of a third party, that could give rise to a public liability claim. Meanwhile, if products you distribute (such as the food that is sold or served), supply or manufacture cause injury or damage, there’s a risk of a product liability claim. You can limit your exposure to these risks with a robust risk assessment strategy plus combined insurance called public and products liability cover.
You’ll need to prepare by keeping revenue reports such as profit and loss statements, forecasts, reservations, as well as your historical performance. When you claim a disaster, bring out your cancellations reports, independent market forecasts, and, if needed, hire a forensic accountant or hotel consultant for a deeper dive into your figures. That way, you’ll have real, verifiable data to back your claim for lost revenue.
Speaking of your data, it could be exposed to cyber-attacks such as phishing, malware and ransomware and major privacy issues about your customers’ information. Small businesses account for 43% of all cybercrime targets, and the cost to the economy is $1 billion per year. Here’s the Australian Government’s advice about how to protect your business.
We can draw on our insights into the hotel sector to advise you on managing your risk profile more efficiently. We can help you customise an insurance package to your needs, so your business can access multi-policy discounts and save time otherwise spent sourcing cover.
Article supplied by OneAffiniti
Photo by Nik Lanús on Unsplash