Australia’s hospitality industry faces many challenges, from inflation pressure to staff shortages. While these trials make it more difficult for restaurants and cafes to succeed, new entrepreneurs are still keen to enter the industry. That’s where hospitality insurance can give your business a leg up.

If you’re starting a new hospitality business, you may want to consider how insurance can help protect your venue, customers, and bottom line.

Protecting your business and everything inside it

Think about the physical items that go into opening a restaurant or café: furniture, plates and cutlery, linens, kitchen tools and equipment, food, beverages, and so much more. Replacing even some of these items if they were damaged or stolen could cut into already thin profit margins.

Business Insurance Packs* are customisable insurance packages with cover options for your business contents, stock, tools and commercial premises. Depending on the cover you choose, your restaurant or café will be protected if an insured event occurs, like a fire, storm, theft or accidental damage.

Handling accidents that affect your customers

With hard work and a bit of luck, your hospitality venue may be booked out or full of hungry walk-ins. However, increased foot traffic creates opportunities for accidents. If a customer is injured in your café or a server damages a diner’s belongings, it may be up to you to set things right.

Public liability insurance* covers legal fees and compensation costs if a customer, member of the public, or a supplier claims against you for injury or damage to their property as a result of your alleged negligent business activity. A policy may be required if you are leasing your premises.

Managing staff dramas

Operating even a small café or restaurant in Australia can be complex. Hospitality venues must follow OH&S, EPA, employment, and other federal and local regulations. A simple mistake or employee complaint could become more than a headache for your business.

Management liability insurance* 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.

Responding to a tax audit

You’re probably keen to take a bite of the industry’s market share—valued at over $20 billion as of 20231. But what would happen if the ATO came calling? Even if your books are accurate, managing an audit without professional help can be stressful.

If your accounts are audited by the Australian Tax Office, you may need to hire external accountants to assist in the process. Tax audit insurance*can be added to your Business Insurance Pack. This type of insurance covers a business for specified costs in responding to an official tax audit.

Take some of the drama out of starting and managing your hospitality business with BizCover. Visit to compare competitive business insurance quotes and get covered today.

1. IBIS World, Restaurants in Australia, accessed 2 April 2024

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.

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