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Insurance for the Hospitality Industry – What you need to know

Across Australia, the hospitality sector has faced a number of challenges over the last two years, with several lockdowns. As we now prepare for the return of the hospitality industry, it is now more important than ever to review the insurance you have in place.
The hospitality sector includes a broad range of businesses, such as hotels, pubs, restaurants, takeaways and entertainment venues. Given the large number of customers that visit these businesses, it is of utmost importance to have adequate protection in place to protect your guests, customers, staff, and overall business.
What are some of the insurance covers you may require?
Every business has a different requirement regarding insurance, however here is a brief summary of some of the hospitality insurance policies that might be applicable:
Contingency Insurance – should your event or festival be cancelled due to an unavoidable or unforeseen circumstance, such as a bad weather event, Contingency Insurance will cover the financial loss that was suffered.
Property Damage Insurance – providing you with cover for fire, flood, storm and theft and a range of other perils that can result in damage to your property. This can include cover for structure, fixture and fittings, contents, and stock. 
Business Interruption Insurance – covering the loss of future gross profit or gross revenue, ensuring you are able to pay future bills, such as payroll, whilst you recover from a loss.
Workers Compensation Insurance – provides cover for injuries or accidents that happen to an employee while at work.
Public Liability Insurance – this protects you and your business from the costs associated with legal action, as a result of your actual or alleged negligence, which caused third party property damage or personal injury.
Products Liability Insurance – if your business supplies, delivers or sells food or beverage, you will need Products Liability cover against claims of goods causing damage, injury, or death.
Machinery Breakdown Insurance – provides cover for the cost to repair certain machinery items from a breakdown, such as fridges or generators.
Management Liability & Legal Expenses Insurance – providing cover for the cost of defending civil actions related to issues such as commercial or employee disputes.
Cyber Liability – provides cover for financial losses resulting from a data breach or other cyber-attack. 

Agile CyberCare covers small businesses against cyber threats and data breaches, including 24/7 emergency response for incidents.

Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

Agile CyberSelect is aimed at mid-market to corporate clients and is a comprehensive Cyber Insurance policy with 16 policy benefits and 24/7 incident response.

Do I require all of these insurance policies? 
Although some of the above policies are not a legal requirement, we strongly recommend obtaining these covers if you operate the following:
If your business falls into these categories, you need to weigh up the potential risk for accidents. Is there a risk of slips, trips, or falls by staff or the public? Could your employees have accidents? Are you responsible if the cleaners do not adequately clean the venue? Are you responsible for venue security?
It is difficult for most businesses to operate without taking on some level of risk, this is why having insurance that can provide cover for these risks and potential incurred costs is highly important.
How do I know which level of Hospitality Insurance I need? 
Most hospitality businesses will require $20m Public Liability Insurance and $50m Workers Compensations Insurance (in Western Australian) at a minimum.
At Trident Insurance Group we will review your overall business risk and recommend a package that suits your requirements. We have over 27 years of insurance broking experience in the hospitality industry, so you can trust us to protect your business.
How can I reduce my insurance premiums?
Trident Insurance Group can provide advice to each client on different methods to prevent incidents from occurring and improve your overall business risk. A proactive approach to risk management will provide the insurers with the confidence to offer lower insurance premiums.
How can I obtain an Insurance Quote?
Feel free to contact one of our Insurance Consultants today, to discuss your specific insurance requirements. 
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 appropriate 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.

All information above has been provided by the author.

Trident Insurance Group, ABN 94247973307, AFSL 237360

This article originally appeared on Trident Insurance Group News & Insights and has been published here with permission.

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