The hospitality sector has had a tough time of late.
There are currently 102,000 jobs in hospitality businesses that need to be filled, according to a recent press release by peak industry body Restaurant and Catering Australia (R&CA), which also said that costs and wages are ‘spiralling out of control’.
The cost-of-living crisis has also kept consumers away from hospitality businesses, pushing eating and drinking out to the bottom of their spending priorities.
With so much gloom, hospitality business owners may be considering cutting costs to help deal with the current situation.
This article will explain how cutting costs could affect your business insurance and show you some ways you could save money on your policy.
Consider switching and saving before cancelling
For some business owners looking to save, their business insurance policy may be among the first on the chopping block.
While it would remove the cost of your premium out of your budget, you may be exposing yourself to the consequences of the risks you were once protected against.
If you cancel your Public Liability policy for example, and someone slips and injured themselves in your store, you may be liable to cover the expensive costs of a claim that may have been covered by your insurance provider.
Instead of cancelling, consider switching providers. If you think your policy is too expensive, jump online and compare quotes from leading insurers and find cover that fits in with your budget.
BizCover makes business insurance easy for more than 200,000 Australian small businesses across over 6,000 occupations.
With that number of customers, it’s a testament to say that 82% of customers who switched through BizCover saved on their business insurance**.
Has your business changed?
With the constant struggle of filling your weekly rosters intensifying and less people eating out, your hospitality business may be in the process of changing to cut costs.
From the number of employees on your books to your contents and business premises, there is a lot you can reduce to save money. But something you may not have considered is how these choices affect your business insurance policy.
If your business reduces its stock levels or workforce since the last time you reviewed your policy, you could adjust your insurance to reflect the risks you currently face – potentially saving you money in the process.
Conversely, if you’ve bucked the trend and your workforce has grown or your stock levels have increased, you may need to consider getting more cover.
Business insurance is there to protect your hospitality business from the risks it currently faces.
The last thing that you want is to renew or cancel your policy without factoring in changes to your business circumstances and be left without enough cover when a claim is made against you.
*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. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
**According to a survey of new customers that have switched insurers through BizCover. Survey conducted in April 1 and October 31, 2022.