The hospitality sector covers a wide range of businesses and within that there are even more sub-industries that work together to house, feed, transport, and entertain guests. Different industries produce and sell a wide range of products and services because of the breadth of their respective sectors. While these are technically different aspects of the hospitality industry, they often intertwine and compliment one another in order to provide the hospitality experience.
Businesses in the hospitality industry include restaurants, hotels, theme parks, tour operators, conference/exhibition centres, and event planners. While each sector is separate from the others, they frequently work together to provide their services to their clients and each of these businesses need to cover its own insurance needs to cover its own specific role in the hospitality sector, while in turn protecting clients, staff and its own business integrity.
How can you ensure the safety of your hospitality business?
We’ve detailed below the main areas that need insurance cover, from Employers Liability insurance to protecting your alcohol licence, so make sure your business is covered if it meets any of the criteria…
Employers Liability insurance
If you run a business in the United Kingdom and employ people, either regularly or occasionally, you must carry Employers Liability insurance. This insurance can protect you from financial loss in the event that an employee sustains an injury or illness on the job.
Insurance for the structure, its contents, and its stock
Buildings insurance
Buildings insurance is a must if you own the property in which your business operates. Buildings insurance should be sufficient to cover the cost of reconstructing the structure in the event of a covered loss.
Contents Cover
Since the hospitality industry encompasses a wide variety of companies, the details of the content may also change depending on the specific company. Hotels, restaurants, and bars may all use similar items, but because hotels often have more rooms, their insurance rates may be higher. Insuring the furnishings, carpets, computers, and the like for their replacement as new value is a must no matter what kind of business you run.
Stock
If your stock becomes unusable, your insurance will replace it. In the hotel industry, inventory may include food, drink, and other perishables that could be ruined in a natural disaster.
Negative Impact on Business
Although you will be better protected in the event of an accident thanks to this coverage, you will likely not be compensated if you are unable to conduct business. If your company experiences an interruption in operations, business interruption insurance can help ensure you continue to receive money while you get things running again.
Alcohol Licence Loss
In the United Kingdom, selling alcohol lawfully requires a special permit from the government. While hotels and restaurants may depend on the selling of alcohol for revenue, a pub would most likely close if its licence was revoked. If you lose your licence due to negligence or poor hygiene, you won’t be compensated by loss-of-licencing insurance, but the policy will assist pay the expense if you lose it due to events beyond your control.
Glass
Get in touch with your insurance company to find out exactly what is and is not covered by your buildings insurance policy, as glass components like windows may not be included. Glass insurance may also extend to sanitary items like toilets and sinks, but it’s best to double-check with your provider just in case.
Public Liability Insurance Cover
An accident involving a guest at your hotel could be disastrous financially. For the client, injuries can be devastating, especially if they prevent them from returning to work. There’s the compensation cost to consider, and then there’s the time pressure to act quickly lest your company’s reputation take a hit. If the hotel has insurance that covers public liability, the injured party will be reimbursed and the business can continue operating normally.
Taking good care of your workforce
One of a hotel’s most valuable assets is its staff, and good hotel insurance will cover medical expenses in the event of an accident. Employers liability insurance protects your business in the event that an employee has an injury on the job. Not having this coverage could result in legal repercussions, so it’s important to remember.
Income stability for the company
Business interruption insurance protects you from financial losses caused by unexpected events. A drop in business income, whether due to theft or damage, does not necessarily have to be catastrophic.
Legal Protection
The law, and especially employment law, is subject to frequent revision. This means that the existing policies and procedures may be inadequate and violate the rights of your employees. In the event of an employment issue, having legal bill insurance on hand can be a huge help. Having access to free legal assistance is a crucial element to look out for, as it will help you and your staff understand your rights and the procedures you need to follow to protect them.
We are aware that the hospitality business faces distinct insurance issues due to the frequent interactions with the general public. As a result, the industry faces new risks, and risk management can play a crucial role in ensuring that services are provided in a way that keeps liabilities to a minimum. We have a team of commercial experts who are dedicated to helping you to put in place the right types of cover you will need.
They will guide you through the many industry specific legal regulations and obligations you may also need to consider. With our expert, individualised service, you won’t waste money on unnecessary cover, and your bottom line will be safe, too. We will provide you with an extensive insurance plan to protect your hospitality business and give you peace of mind. If your current policy is soon to expire, you need to renew or you are just starting out in business contact us on hello@abbeyautoline.co.uk or 08000 66 55 44 we would be happy to help.
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Rindx Team
Hannah Owolabi
Owolabi Meshach
