Hospitality Industry

What types of insurance cover should you consider if you own a restaurant, café, take-away, bar or nightclub?

Some of the most important insurance includes:

  • Public liability insurance – if you are in the hospitality business then you are dealing with the public. Public liability insurance is a ‘must have.’ Public liability insurance premiums have skyrocketed over the last decade, but the Federal Government has been working in recent years to reverse this trend. Even so, public liability insurance can be incredibly expensive – be prepared to pay.
  • Protection from shortage of turnover or loss of profits
  • Fire, storm and malicious damage to your buildings
  • Breakdown of machinery, such as refrigeration equipment
  • Cover for breakage of glass and signs – if you operate a high-end restaurant or bar your glass and signage could be very expensive. Make sure you are not underinsured.
  • Insurance for stock and money
  • Personal accident and illness insurance
  • Workers’ compensation – this is compulsory if you employ people

Some hospitality industry groups can help you find suitable insurance providers or insurance brokers who specialise in the hospitality industry. Make use of your industry associations, as they can save you time and money when choosing the best insurance.

Hospitality industry risks and insurance

There are many risks involved in running a small hospitality business, and business owners need to be aware of these in order to assess their insurance needs. Some areas that need special consideration include:

  • Personal accidents
  • Theft or damage to property
  • The responsible service of alcohol (RSA) – there are very severe fines associated with serving alcohol to intoxicated people. Make sure all your employees who are involved in serving alcohol are properly trained and accredited with RSA certificates.
  • Food management
  • Passive smoking – you need to know and comply with updated restrictions to smoking in public, and realise that these restrictions differ from state to state.
  • Noise
  • Valet parking