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Many people dream of opening their own restaurant, café, or bar but it’s not often that insurance is at the forefront of their minds. No matter how small or big your business is, having the right insurance in place will give you peace of mind on the odd chance that things go wrong.
Types of insurance
There is a range of cover options you may be considering if you’re in the hospitality industry. While some covers are mandatory, others can be seen as a “good measure”. Here are a few to think about.
Public liability insurance
Public liability insurance protects you if a customer is injured or their property is damaged while in your place of business. This insurance will provide cover for medical expenses and damages, legal costs, compensation for the customer’s property and the expenses incurred by giving first aid to others. You’ll find that with most leases, public liability insurance is a legal requirement. Without this cover, the expenses that you’ll have to pay out of pocket could bankrupt your business.
Workers’ compensation
The most common injuries experienced by hospitality workers are falls, trips, overexertion, and repetitive motion injuries. If you have an employee out for a work-related injury, workers’ compensation can help cover the medical fees and lost wages. Having this type of insurance, aside from being a legal requirement will also help you reduce your business’ financial risk.
Products liability insurance
If your business supplies, sells or delivers food or drinks, you’ll need this type of insurance to protect you against claims of goods causing damage, injury, or death. This along with public liability insurance and workers’ compensation is one of the most important covers to have.
Property, stock, or money theft
Equipment, food, and money can be stolen, and break-ins can happen. With property insurance, these types of losses can be covered. In most hospitality businesses, this is a legal requirement.
Business Interruption
If you need to shut down your business temporarily due to property damage loss, would your business survive financially? As part of your Business Insurance, you can include cover for Business Interruption which will provide cover for operating costs and your loss of income to the business
Liquor liability
If alcohol is served on your premises, your liability insurance will protect your business for any legal fees, medical costs or settlements caused by an intoxicated person arising from your negligence.
How to identify the most common risks in your industry
When you meet with an insurance broker, one of the first things they will ask about is your business insurance and what the most common risks involved in your industry are. To help you choose the right insurance, our brokers have provided risk hazard reports for restaurants, coffee shops and bars/taverns/nightclubs.
While these businesses all fall under the hospitality category, they’re all very different and need to be evaluated separately.
Talk to an expert
There are many factors to consider when deciding what type of cover you need. Without the correct advice, you leave yourself open to risk both financially and legally. Our insurance brokers look at your circumstances individually and will provide you with a tailored strategy that effectively covers you and your business. Get in touch with our team today to get started.
