Why go for generic small business insurance when there’s one tailor-made for the hospitality sector? Whichever you choose will depend on the one that’s the best fit for your operations. This article will explain why an industry-specific policy may be right for you, so you can make the right decision based on your unique circumstances.
COVID-19 trading restrictions, changed consumer buying habits as well as increased insurance premiums, may see you looking to save money on your cover. As your broker/adviser, we’re mindful of this and know you still want to be protected against the risks in running your business.
Hospitality businesses include any that provide accommodation or is in the food services industry. This includes:
Hospitality businesses types have a wide range of risks, including:
Savvy businesses take a range of steps to reduce their risk profile, including:
While public liability insurance isn’t compulsory, it is a must-have insurance for the hospitality sector, and workers’ compensation cover is compulsory if you have employees. Products liability is also a must-have if you serve food. These might be just three of several insurance policies your business needs in your hospitality insurance package.
When considering small business and hospitality insurance, look at which policies are specific to the operation of your business. Factors include industry, trade, size and location of your business as well as its risk profile. If your business operates in both retail and hospitality sectors, for instance, then an insurance package that includes public and products’ liability, equipment breakdown, theft, business interruption and more would be a good fit.
Consider if there’s a power outage or equipment failure and your cool room is full of spoiled food. If you take out deterioration of stock cover, you will be covered against food spoilage that may occur as a result of equipment breakdown. This is a common occurrence with 4.1 million Australians affected every year, even at elite eateries. A ‘high tea from hell’ at Melbourne’s five-star Langham Hotel saw 86 diners come down with salmonella infections.
Check with your broker/adviser as your insurance may also assist with the cost of cleaning your equipment, lost revenue as well as helping you restore your brand reputation.
In short, hospitality businesses often find specialised cover for their industry gives them peace of mind. Using a broker/adviser to create a customised package ensures the policy meets the specific needs of the business. We can also help you improve your risk management and make your business more attractive to insurers.
Safe Work Australia – hospitality – risk assessment
Safe Food Australia
https://www.foodstandards.gov.au/publications/Pages/safefoodaustralia3rd16.aspx
Article supplied by OneAffiniti
Photo by Caroline Attwood on Unsplash
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