Hospitality Insurance: Your Complete Guide
Australia boasts an extensive hospitality industry, comprising over 30,000 restaurants, 28,000 cafes and coffee shops, and 9,000 pubs, bars, and nightclubs. If you operate within this industry, you’re likely familiar with the unique challenges of running a hospitality business. And if you’re considering going out on your own, it’s crucial to be prepared for all possible scenarios.
The hospitality realm is rife with possibilities for mishaps. Financial setbacks or even business closures can be a stark reality without the appropriate hospitality insurance coverage.
Below are some of the key vulnerabilities that hospitality business owners must safeguard against.
Public Liability
In the event of incidents like slip-and-fall accidents on your premises or food poisoning resulting from your establishment, individuals may seek compensation. Public liability insurance can help alleviate the financial burden of personal injury, and property damage claims your customers make. The nature of your business will dictate the extent of coverage required.
“The risk of fights, for example, is much higher when you’re running a club versus a café or restaurant because people aren’t necessarily going to be drinking as much alcohol in the latter,” Steadfast Broker Technical Manager, Michael White explains. “Business interruption insurance can help tide you over until you are cooking with gas again”.
Property & Machinery Damage
For hospitality businesses involved in cooking, the potential for kitchen fires looms. Property insurance aids in repairing fire-induced damage, while machinery insurance covers replacing equipment that sustains harm. The rectification process might be protracted, especially if equipment or parts need to be sourced internationally, sometimes taking up to six months.
Business Interruption
This coverage comes into play during catastrophic events, sustaining your business while you recover and rebuild. For instance, if you cannot offer your full menu or operate as usual, business interruption insurance cushions the impact on your revenue until normal operations are restored.
Workplace Injuries
The fast-paced and often hazardous environment of restaurants, clubs and bars exposes employees to various workplace injuries like burns, cuts, slips, and trips. Prioritising stringent health and safety protocols and comprehensive employee training is crucial. Workers compensation cover is vital for managing potential compensation claims from work-related physical or mental injuries.
Theft
All businesses, including those in the hospitality sector, are susceptible to break-ins—theft and burglary insurance safeguards against stock and contents loss or damage resulting from forced entry.
Don’t leave the long-term success of your business to chance
If you haven’t assessed your business insurance recently, now is the time to do so. Reach out to your broker to address all your hospitality insurance needs and secure the future of your business today.