Insurance for the Hospitality Industry – What you need to know

The Coronavirus outbreak has completely upended the business community, with many SMEs forced to operate remotely while their shops and offices remain empty indefinitely. Never has it been so critical to have premises safely secured.
The tough shutdown measures, aimed at slowing the community spread of the virus, are anticipated to last for six months, or longer if warranted. Everything is up in the air at the moment. It will all come down to whether or not governments at state and federal levels think the outbreak is completely quelled.
Like you, we are an SME business. For the thousands of other SME owners out there, no matter what kind of business they own, the next few months will be fraught with anxiety. It’s already proving to be the most challenging period many of us have ever faced. On top of worrying about business cashflow, SMEs must also think about the security of their unoccupied premises.
So why is it important that premises are properly secured during prolonged shutdowns? Because the chances of breakin, vandalism or other malicious acts are often higher in such situations.
For example, if a property is unoccupied for an extended period it’s the insured’s duty to inform the insurer of the change, according to the duty of disclosure section in the Insurance Contracts Act.
However, you should be aware that insurers do provide full cover for empty premises over a stretch of 30 days before notification is required. A number of them also have policies that provide up to 100 days of cover depending on how the cover was set up.
Some insurers have also announced they will maintain full cover for SMEs during the enforced shutdown with no changes to premium, so please feel free to contact us to sort out your own particular circumstances.
We are only a call or an email away, and we can also look into what business protection you may need during this enforced shutdown. Every situation is subtly different.
In the meantime, there is a range of measures that you could undertake to protect your premises during this period.
And remember, you can call us anytime for advice and reassurance. These are strange times, and we’re here to help you through them.
This article originally appeared on Adroit Insurance & Risk Blog and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Adroit Insurance & Risk.
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