Do you have protection for the risks your hospitality business currently faces? And are you sure that your previous levels of business insurance will cover you if the worst were to happen?
The Australian hospitality sector is currently being hit by a triple blow.
Firstly, the cost of produce has skyrocketed due to a combination of inflation, supply chain issues and bad weather.
Faced with these price increases severely impacting their bottom line, hospitality businesses have had to pass many of the costs on to consumers.
This has created a second problem for the industry, with Australian consumers altering their spending habits to compensate for cost-of-living pressures.
Hospitality businesses will be hit hardest, with recent research finding 60 per cent of Aussies planning to dine out less frequently, followed by visiting bars (53 per cent), getting takeaway (50 per cent) and visiting cafes (43 per cent).
Finally, the sector is also experiencing a chronic labour shortage largely due to a lack of migration, with more than 50,000 hospitality job vacancies across Australia as of May 2022.
Does your business insurance reflect your current risk levels?
With so much change, it’s likely that hospitality businesses like yours could have a change in the way they operate or their structure. Your staff levels, business premises and its content could be totally different in a few months’ time from the current environment.
If your business reduces its stock levels or your workforce shrinks between reviewed your policy, you could adjust your insurance to better suit your current size – potentially saving you money in the process.
Conversely, if your workforce has grown or your stock levels have increased, you may need to consider getting more cover.
Your business insurance policy is designed to reflect and protect you from the risks you currently face.
The last thing that you want is to renew your policy without factoring in changes to your business circumstances and be left without enough cover when a claim is made against you.
What can you do?
While the current situation is tough, there are some things hospitality businesses can do to protect themselves.
Regularly scheduling some time to consider your exposure to risks could help avoid problems later down the track.
Consider what risks your business is exposed to and think about the possible scenarios that could happen if you weren’t protected in the event of a claim.
After that, consider jumping online to compare quotes so you could then decide whether the price of the cover justifies the protection.
While there are many perks to being your own boss, overseeing everything can get quite dramatic. Luckily with BizCover, business insurance doesn’t have to be. Visit bizcover.com.au to compare quotes or give us a call today – no dramas!
*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. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769