The Australian hospitality industry has a reputation for being lively and wildly inventive, with quintessentially Australian takes on traditional dishes. It is also a very diverse sector that includes everything from traditional dine-in restaurants to takeaway shops, cafes, food trucks, pubs, catering businesses, entertainment venues, and fast food outlets.
At any given time there may be various types of individuals present in your hospitality business – from customers to suppliers to kitchen staff, wait staff, cleaners, and maintenance professionals. Therefore, having adequate protection, such as reducing the risks to your business with hospitality insurance (also known as café insurance or takeaway shops insurance) can be critical to the long-term success of your hospitality business.
Why hospitality businesses may consider business insurance?
Whether you’re serving up chai lattes or gourmet pizzas, business insurance is something that every restaurant and cafe owner can benefit from. Your food business interacts with people every day, from customers to suppliers, creating the potential opportunity for accidents to occur.
With business insurance reducing the risk to your food business, you will be actively helping to protect your hospitality business from the financial and reputational damage an insurance claim may cause.
What types of food business insurance can reduce the risks to hospitality businesses?
At BizCover our customers in the hospitality sector reduce their risk with the following business insurance products.
Public Liability Insurance
Business insurance that typically protects hospitality businesses from claims related to:
- personal injury suffered by a third party, such as a supplier, customer, or member of the public;
- damage to property owned by a third party due to your negligent business activities; and
- legal and defence costs associated with a covered event.
Events that are not covered by Public Liability insurance include:
- injuries to your employees;
- damage to your own property; and
- professional negligence.
Business Insurance
Also known as a business insurance pack, Business Insurance typically provides financial cover for your hospitality business and often will include Public Liability insurance, Professional Indemnity insurance, and Business Insurance. Business Insurance can insure your building (if you own it) and its contents, as well as machinery breakdown and business interruption events such as power outages
Management Liability Insurance
Insurance that covers risks that may occur during the course of running your hospitality business. These can include OH&S issues, unfair dismissal claims and sexual harassment claims, statutory breach of duty, defamation, and statutory fines or penalties.
Two more types of business insurance that you may consider for your hospitality business are Tax Audit insurance and Cyber Liability insurance.
Frequently Asked Questions
What is hospitality insurance?
Hospitality insurance is a type of business insurance that is designed for businesses in the hospitality and food service industry. Hospitality industry insurance offers coverage for theft, product liability, equipment breakdown, business interruption, and potentially other types of coverage depending on the individual policy.
Who does hospitality insurance for small business cover?
Hospitality insurance is available to small businesses (including a home-based food business) that operate in hospitality, including:
- Small businesses that have a fixed location such as restaurants, cafes, take-away shops such as fish and chips shops and sandwich shops. Other types of food and beverage businesses, such as juice bars, may also be eligible for hospitality insurance.
- Mobile businesses that operate on the roads, such as caterers and food trucks, coffee vans, and ice cream vans. These types of hospitality businesses are generally covered based on the type of vehicle they use.
Reduce your hospitality risk with BizCover
At BizCover, we make it easy for hospitality business owners to reduce their risk with business insurance that specifically addresses the risks facing business owners in the hospitality industry.
Learn about insurance for restaurants and cafes and how hospitality insurance can help reduce the risk to your food business. Compare competitive hospitality insurance quotes from Australia’s leading insurers online, get covered in 10 minutes, and get on with your day.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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