Could your business survive a disaster like this?

The hospitality business thrives on creating exceptional experiences for patrons – whether that’s through stellar fine dining, unique entertainment, or thoughtfully designed settings.

However, even the most esteemed hospitality business can face a range of risks behind the scenes. These risks can disrupt operations, damage reputations and lead to significant financial losses.

A real-world hospitality horror story

It’s the kind of horrifying incident no-one wants to consider, with the potential to destroy your reputation and bankrupt your business. This real-world claim story of a hospitality business on the brink of ruin demonstrates the importance of having the right kind of business insurance.

During a busy dinner service, a disgruntled employee surreptitiously contaminated guests’ meals with dishwashing liquid.

After finishing their tainted meals, many of the customers became ill. The story then hit the papers, and suddenly the restaurant found itself facing a PR nightmare. At a loss as to how to solve this problem and salvage their ruined reputation, the business owner spent $37,000 retaining the services of an external crisis management company to mitigate any damage to the restaurant’s reputation. The crisis management company was able to keep the reputational damage to a minimum, but now the restaurant owner was out of pocket tens of thousands of dollars.

Fortunately, the owner of the restaurant had Management Liability insurance. The insurer reimbursed the restaurant owner the full amount for the crisis management costs.

What kinds of insurance do hospitality businesses commonly have?

In the above claims example, the hospitality business in question held Management Liability insurance. This kind of policy is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business. But there are other types of insurance policies you may also wish to consider to protect your business from claims.

Public Liability insurance

Public Liability insurance covers you if a third-party claim that your negligent business activities caused them injury or property damage – such as if a customer slipped on a spill or piece of food that had not been properly cleaned up and injured themselves.

Machinery Breakdown insurance

You probably rely on a few key pieces of equipment to run your restaurant, like a walk-in freezer, industrial oven or a commercial coffee machine. Machinery Breakdown insurance covers you for the cost of repair or replacement of your machinery following an unexpected failure

Theft insurance

Theft insurance covers you against loss and damage as a result of theft or attempted theft from your business premises. Damage to the building, locks and safes as a result of a covered event is included in the policy.

Insurance for hospitality businesses made easy

BizCover makes it easy for hospitality businesses to quickly and easily compare quotes from Australia’s leading insurance providers. Compare insurance quotes today and discover how much you can save by visiting BizCover or calling 1300 805 821.

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover.

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.