Practical Steps for the Hospitality Industry during Covid-19
The hospitality industry has been hit hard by Covid-19. Venues are shut, customers are staying away, casual staff have been stood down or let go. During this time, Hospitality Venues need to review their insurance coverage as part of their management processes. Here are three key areas to consider.
Liability Insurance Discounts
The team at Clear Insurance have been successful in negotiating good premium discounts for our hospitality clients by amending their public and products liability policies to "non-operational".
Amending public and products liability policies to "non-operational" is being agreed to by some Insurers on the provision that when the hospitality venue is operational in the future, the policy is reverted to "operational" and an additional premium is payable when trading commences.
Note: various Insurers have differing premium discounting abilities however, the specialist hospitality underwriting agencies have a more positive approach to allowing this discount at the moment.
Business Continuity Planning & Risk Management tips for non-trading licensed venues
We recommend that all licensed venues review their business continuity plan (BCP) to ensure it is current and update delegated roles in the BCP, given that many staff have now been stood down.
Key points of consideration in your BCP:
- People first! look after your key assets
- Assemble your BCP team
- Communicate, communicate, communicate
- Review existing plans
- Prioritise Key Business Functions
Property Risk Management
Managing your property risk exposure is crucial now that licensed venues are non-operational. Advice received from Chubb Insurance for our hospitality clients is below.
Recommended property risk management action items:
i) Minimum 1 person to remain on-site during normal business hours;
Note: If this is not feasible recommend minimum twice daily visits and inspections conducted at the insured premises
ii) Main Gas supply shut off (if cooking not being performed or gas not used for power/heating etc);
iii) Other utilities remain connected;
iv) All alarms, smoke detection, sprinkler systems to remain activated; v) Cash removed from the premises.
Business Continuity Planning
COVID-19 Shutdown Unoccupied Premises
Source: IAG, developed by IAG Risk Partners
Clear Insurance Pty Ltd is a Corporate Authorised Representative and Platinum Practice of Insurance Advisernet Australia Pty Ltd. CAR No. 465935. Australian Financial Service License Number: 240549
General Advice Warning This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Lisa Carter.