Hospitality Insurance
Keeping your customers and clients safe, happy, and accounted for in the hospitality industry is crucial to minimise complaints and business runs efficiently. When those in hospitality are looking for insurance, they must find a provider who can protect your venue, you, your customers, and the stock tools and contents you keep around to help run your business.
Hospitality companies thrive on a constant day-to-day turnover that helps keep the revenue stream going and ensures a healthy bank balance. You want an insurer who can tide you over even if the whole operation is forced to shut down temporarily, so make sure you do your research when looking into what sort of hospitality insurance would be best for your company.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Why is Hospitality Insurance so Important?
During the COVID pandemic, we have seen just how disruptive a temporary closing of business can be in many countries, including the UK, with many previously thriving hospitality businesses being forced to shut their doors permanently. Whilst you’re inside a bubbly hospitality venue, things often feel full of life, but it is a genuinely precarious industry that can be fragile and vulnerable to sudden changes.
The constant daily churn in and out of new and regular customers is also a gold mine for accidents and unfortunate incidents that can create sticky situations with public members. Although you may take all the necessary health and safety precautions, it becomes a numbers game at a certain point. The sheer turnover of customers raises the opportunity of something going wrong. Things can get even more sticky when alcohol is thrown into the mix. Most people are a great company after one or two drinks, or maybe even more than that, but unfortunately, there will always be people who become problematic or destructive after one too many.
There’s also no way to predict accidents from happening by even the most careful of patrons. Whatever type of clientele you have, alcohol can be a recipe for both a good time and for damages. This busy atmosphere in the hospitality industry means there’s one insurance policy that we recommend above all others. However, two others will also be essential for your business.
Doing your research on insurance policies is crucial in the hospitality industry because the competition is incredibly fierce from some giants in the industry, and you’re always going to be juggling a lot on your plate. Here is the vital information you need to keep your hospitality business protected and financially safe, providing you with peace of mind in the long term.
What Types of Hospitality Insurance are Most Essential?
The essential insurance policy that most hospitality businesses need to get is public liability insurance. This type of insurance is recommended to most businesses and practitioners, but there is perhaps no industry to which it is more essential than the hospitality business. What a public liability insurance policy provides is simple. When one of your customers gets hurt or has their property damaged because of (according to them) your business, they can claim you. This involves a legal proceeding and if you’re found guilty also involves you having to pay them compensation.
Most lines of work are recommended to be covered in this area because anyone can have an accident, and it’s impossible to safeguard yourself against the unknown completely. However, most lines of work aren’t juggling so many things in such busy environments, with people possibly moving or dancing or doing something like going on a theme park ride. Having public liability insurance can be a lifesaver when one of these claims is made against you (which is more likely than for other industries).
You’ll have someone assigned to deal with your legal case, and if they are unsuccessful and you’re still ordered to pay compensation, your insurance provider will cover the cost up to a certain amount. This saves you from nasty budgetary surprises and lets you focus on work.
The second is employers’ liability insurance. This is similar to public liability insurance, except it pertains to claims made by your employees. It protects you and your employees, making for a safer and happier environment for everyone involved in running the company. In some places, such as the UK, it’s also a legal requirement for everyone with employees. Even if it weren’t, we’d still strongly recommend it.
Lastly is premises insurance. What is hospitality if you have no venue to be a good host of? Premises insurance will get you back on your feet as quickly as possible if you have a good insurer and will cover you for lost revenue whilst your company building is shut down for any reason. Considering that almost no hospitality businesses can operate from an at-home basis, it is worth being protected in case your venue becomes temporarily unusable for any reason.
We hope you have learnt about hospitality insurance today! Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Churchill Business Insurance
Hiscox Business Insurance
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