When you own your own hospitality business, whether it be a restaurant, bar, nightclub or catering company, you’ll want to make sure that everything will run as smooth as possible. Businesses in the hospitality industry are constantly exposed to a unique set of risks that come with providing the services and amenities that guests demand. Having hospitality insurance in place will help you deal with those unwanted events.
Risks are often heightened as many businesses have a high turnover of employees and a large proportion of casual and part-time workers. Furthermore, new risks are always appearing in the hospitality industry, and with constantly changing regulations and trends, previous exposures can present new and different challenges.
Below are some common risk exposures that our clients in the hospitality sector are protected against. It is important to bare in mind that these will vary depending on the specific circumstances of each individual business.
Many restaurants, bars and nightclubs are exposed to burglaries and theft due to carrying a large amount of money on premise. It is important for all hospitality firms to have the right security measures in place, such as surveillance cameras, safes to put money in and security systems.
Having an appropriate Theft, Money and Glass insurance policy in place will help take care of your most valuable business assets while letting you get on with the job.
Food safety should be a number one priority for the hospitality industry, no matter the size or scale. Common outbreaks include salmonella, food poisoning from contaminated chicken, vibrio from raw shellfish and E. coli.
If an outbreak occurs, it can sometimes lead to a significant expense to your business. Depending on how severe it is, the property may have to be shut down for extensive cleaning which will incur Business Interruption costs, as well as any bodily injury claims from patrons and workers’ compensation claims from employees.
In order to reduce your risk, restaurant staff should be thoroughly trained in food handling, sanitation and health safety procedures, and food vendors’ quality controls should be put in place to ensure that the food they provide is safe.
Businesses that serve alcohol face a range of potentially serious risk exposures. Significant consequences may occur if your business serves alcohol to someone underage or an already intoxicated customer. Furthermore, alcohol-fueled customers are more difficult to deal with, create more mess such as spillages and breakages and are more disorderly which puts staff and your venue at greater risk of harm.
It is therefore essential that employees who serve alcohol hold the appropriate licenses and are continuously trained to ensure they don’t become complacent over time.
Cyber attacks are on the rise throughout Australia, and businesses in the hospitality industry are often targeted, as in most cases, they will accept credit cards as payment. If the security of personal financial information is compromised, your business may incur significant costs to notify customers that their data has been exposed.
It is important to safeguard against cybercrime in order to mitigate your cyber exposure. For example, procedures for how data is collected, and storage should be well thought out. If a third-party stores information, it’s important that they have robust security procedures in place.
Are you protected against these risks?
It’s always important to understand the type of coverage you need and what the available options are for your business. Business Interruption helps to replace your lost income so that your business can get back on its feet again due to an insured event. Any business that must close down completely while the property is being repaid may lose out on competitors.
If you are in the hospitality industry it is important that your risks are acknowledged, and the business gains the most appropriate coverage to ensure you can operate in the event of a claim.
With the help from East West Insurance Brokers, we can help protect yourself, your business, your employees and even your patrons which will undoubtedly give you a peace of mind that you are protected. For more information on how our brokers call help protect your café, restaurant, club, hotel or bar, contact us today: