Hospitality is a broad field encompassing businesses such as cafés, restaurants, pubs, clubs, tour operators, hotels, and other accommodation providers. While running a hospitality business can be profitable, there are also many potential challenges that can affect the bottom line. This is why it’s essential that hospitality businesses have sufficient cover from hospitality insurance.

COVID-19 has affected many hospitality businesses in significant ways, resulting in lost income, staff layoffs, and even bankruptcy. While hospitality insurance may seem complicated or inflexible, there are many benefits and options that can help keep you in business.

What kind of coverage can you expect with your insurance? Here are just some of the options you’ll find in most policies.

Theft and money
Theft and money covers you in the event that your premises is robbed and equipment, stock or money is stolen. Some policies will also allow cover for cash which is either in transit, on premises, or in a private residence, often with additional coverage around important trading periods such as Christmas.

Public and property liability
If an accident occurs in your premises which leads to personal injury or property damage for a customer, client, passer-by or delivery person, public liability insurance can offer financial cover in the event that a claim is made by the affected party. Most public liability policies will provide coverage up to $20 million, to protect against legal claims and expenses.

Equipment breakdown
If you’ve spent tens or hundreds of thousands of dollars on equipment such as coffee machines, cooking appliances or fridges, it can be frustrating and interfere with your ability to trade if they break down. This kind of option usually offers cover in case of repair or replacement, and is one of the most common claims for hospitality businesses, so it’s essential for your hospitality business.

Business reduction/interruption
If you see a reduction in revenue due to damage from an incident such as fire, storm, burglary, or other insured event, business reduction cover can help you. Some policies will also allow you to claim for any costs associated with preparing the insurance claim, as well as for the increased cost of working due to the interruption.

Property damage
Your business can be severely impacted by events such as fire, storms, lightning, explosion or earthquake, so property damage coverage is a must for any hospitality business, which can provide cover for your building and its contents, stock, and other specified items.

Portable and valuable items
Some items that you use for your business, such as a mobile phone, laptop or tools, will be transported from place to place, rather than staying in one spot. This kind of coverage can offer protection in case of accidental loss or damage for those items which you need to have with you wherever you go.

No hospitality business should be without adequate insurance coverage, so call Steadfast Insurance today to discuss your many options.

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