Insurance for Hotels, Pubs, and Clubs
Whether you are the owner or the operator of a Hotel, Pub or Club, having the right insurance to cover your business and assets is important. We recognise that no two businesses are the same; the way you run your business is unique. We provide specialist advice for the Hospitality industry that is customised for your unique business. On this page we have prepared some general information to help you understand some of the common risks and insurance options for your industry.
TYPICAL INSURANCE COVER
A typical Business Insurance package is made up of the following types of insurance:
- Material Damage insurance or Property Cover is important for any Owner or Operator. Whether you need to insure the building and fitout, or just the equipment inside, having the right insurance package tailored for your Pub, Motel or Hotel is important.
- Loss of Income can be just as important for the Property owner to ensure their rental income continues following damage as it is for the operator to ensure they can continue to pay their expenses in the event of damage to the premise or the loss of utilities such as power, water and gas supply. Maybe your particular hotel relies on a nearby attraction and if it were to be damaged the loss of attraction income it would impact your revenue. No matter how you operate your Hotel, Motel or Pub; we are here to help.
- Machinery Breakdown Insurance and Spoilage of Food Cover is one of the more frequently claimed sections of cover and with good reason. Food should be disposed of if the temperature exceeds a maximum temperature, particularly for your refrigerated or frozen proteins which can be very expensive to replace. There are a wide variety of policies, some that have age restrictions on machinery, some that have exclusions for 'wear and tear', others that don't cover electrical or electronic fault (such as the power board or temperature control unit failure) and majority of policies also do not provide loss of income whilst the fridge / cool room is being repaired or replaced. Whilst this is one of the most commonly claimed covers, it is also one of the most disputed simply because business owners haven't taken the time to understand their cover before they pay for it. We can help you understand your cover and work with you to try and obtain the cover that you need for your business.
- Public Liability and Products Liability Insurance is one of the more commonly known types of insurance. This cover is usually requested as part of a commercial lease for Hotel Operators and is typically required for licensing. A Public and Products Liability Insurance is cover for your obligation to others as a result of a negligent action by you or your employees, or, as the result of their injury from a product you have supplied them with (such as food you have cooked or a raffled meat tray).
What other insurance policies may you require in addition to a BUSINESS Insurance OR HOSPITALITY Policy?
Cyber Crime is a big risk to most small businesses. Chances are your business network is already vulnerable or infected as a result of cyber crime and you may not know it. Most small business owners think it wont happen to them simply because they are a small business. But, it is small businesses that are quite often the easiest targets simply because they don't have the resources of big business to stop cyber criminals.
You may have heard of someone who has had their computer and data locked and that they had to pay a ransom to unlock their data. This is an example of Cyber Crime and it is becoming more common, particularly amongst small businesses. It is also a common exclusion in most business insurance policies.
A well structured Cyber Insurance Policy can protect you in three ways;
- Loss of or damage to your own equipment, websites, domains and assets as a result of cyber crime. This is the cost of replacing your damaged /infected hardware and the cost of reinstating your data. In some cases, the policy will also provide cover for the ransom if there is no other reasonable alternative.
- Loss of income following an insured event. This is particularly important for any business that relies on its technology infrastructure to generate income. Whether this is an online shop, an online booking system for customers to book tickets and seats, or more simply your EFTPOS system.
- Your liability to your customers for their data that you hold. Cyber Liability is one component of a Cyber Insurance policy which is aimed at protecting your business for the liability or obligation to others for the data that you hold in the event that their privacy is breached by the criminal activity on your network.
Directors Liability & MANAGEMENT LIABILITY Insurance
As the director of a company, you can be held personally liable for decisions you or your staff make on your behalf in the running of your business. These decisions may result in an alleged breach of employment law (harassment, discrimination, bullying, unfair dismissal), trade practices act, environmental protection, or workplace health & safety laws. A directors liability or management liability insurance policy generally protects the company and any innocent parties by paying for defence cover to defend against such allegations against you as a director and / or the business entity.
Workers Compensation is compulsory in most states for employers. In NSW for instance, if you pay more than $7,500 in wages, including casual labour and including goods or accommodation in lieu of monetary payments, it is compulsory for a workers compensation policy to be in place. This also includes directors of a Pty Ltd company, even if it is the family business.
We can assist you with Workers Compensation Insurance in the following states & territories
- New South Wales Workers Compensation
- ACT Workers Compensation
- Victorian Workers Compensation
- Tasmanian Workers Compensation
- Western Australia Workers Compensation
- Northern Territory Workers Compensation
As workers compensation insurance only covers you during working hours, you should also consider reviewing your life insurance, income protection, or injury insurance for you and your family on a 24 / 7 basis to cover you for injuries outside of the work environment.
Personal Accident & Sickness Insurance or Business Continuation Expenses
If you operate as a sole trader or partnership, or are a director of a pty ltd company in a state that doesn’t cover directors and are as a result unable to arrange cover for yourself under workers compensation insurance, you may wish to consider personal injury / accident insurance or a business continuation expenses policy.
A personal accident & sickness insurance can assist you in the event of an accident or sickness preventing you from undertaking your work by providing you with a weekly benefit of up to 85% of your ongoing weekly income. The policy can also be extended to include a capital lump sum benefit in the event of permanent disability or death.
Unlike Workers Compensation this type of policy is typically a 24 / 7 policy providing you with cover in your personal time. Whilst a personal accident & sickness policy covers you for a continuation of a portion of your salary, it typically doesnt cover your medical expenses associated with an injury or sickness.
The business continuation expenses insurance can be taken as an extension of this policy or as a stand alone policy in its own right. This particular cover helps protect your business by paying for the costs associated with keeping your business running whilst you recover from an accident or sickness claim.