Whether you’re running a catering business or serving escargot from your fancy French restaurant, business insurance is something every hospitality business needs to think about.
From customers to suppliers, you’re interacting with people every day, increasing the risk of an accident to happen. While there is plenty you can do to deal with these risks, unwanted situations can occur even in the cleanest and most safety-conscious workplace.
But it’s not going to happen to you, right? In all your years of experience, no one has made a claim against you nor against any other hospitality business owner that you know.
But what the following three examples will show is that it can happen to small Australian businesses like yours, and it’s crucial to have business insurance in place if you want to remain in business.
- Something fishy
A busy restaurant in the city had an off day and served some off fish. This resulted in five customers being poisoned and becoming violently ill.
Fortunately, the business had Public Liability insurance* in place, which is designed to protect businesses if a third party is injured or sustains property damage due to your negligent business activities.
The customers were each paid out $20,000 for their medical treatment and damages under the Public Liability policy.
- Not parking within the lines
The owner of a sushi shop in a shopping centre was literally minding their own business when a vehicle crashed into their wall. The shop sustained damage to the kitchen storeroom and dining area. They were also prevented from trading.
Thankfully, they had taken out a Business Insurance Package, which could cover your business premises and contents against loss, damage or theft as well as cover against any resulting financial loss from an insured interruption to the business.
In this case, the insurer made payments of $18,837 under the Property (Contents) and $1,583 under the Business Interruption sections of the policy, less the excess.
- The bed & breakfast with bad luck
The owner of a Bed & Breakfast suffered damage to their business as a result of the 2019 Bushfires. It sustained damage to the roof of the main house and two outbuildings and sheds along with 90% of the fencing on the property.
Twelve months later, they suffered damage to their property again – this time because of storm damage. It is unclear how many mirrors were broken or ladders walked under before the incident.
The Insurer paid $470,000 in damages for the first claim relating to the bushfires and $18,000 for the second claim for storm damage under their Business Insurance policy. Needless to say, their policy was renewed.
At the end of the day, these are good news stories. An accident happened and they remained in business due to having the right safeguards in place. But imagine how the story might’ve ended if they hadn’t sorted out their business insurance?
Don’t wait any longer. There is a whole menu of options when it comes to insurance for hospitality businesses.
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
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. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this article is general only. Coverage for claims on the policy will be determined by the insurer, not BizCover and will depend on the specific facts and circumstances involved.
