As a small business owner of a hospitality business you know first-hand that things don’t always go to plan. When unplanned events occur, they can have a big impact on the running of your business and your hip pocket too.
From serving up gourmet dishes in a restaurant to cappuccinos in a café or fish and chips in a take-away store, there are common risks which come with working in the hospitality industry. An unpredictable incident like someone slipping over on freshly mopped floors could have a serious impact on your business’ financial situation and your reputation.
There are also a host of risks associated with serving up food and beverages to the public every day and the potential for a liability claim to be made. While customers could bear the brunt of a spillage of a hot cuppa, they’re not the only ones you need to worry about.
Even something as simple as a supplier tripping over a box and injuring themselves at your business premises, could cost you much more than a few deliveries of fresh produce!
Don’t leave it to chance for a claim to potentially curdle your business – explore how Public Liability insurance can help protect your hospitality business.
What is Public Liability Insurance?
Public Liability insurance is designed to protect your hospitality business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities*. Your cover also provides assistance with the associated legal cost of managing claims that are covered by the policy*.
Operating as a hospitality business means you also have a legal responsibility to take reasonable steps to protect the safety of your customers, suppliers, the greater community and their property. Even though you may be focused on creating a safe environment, you cannot foresee the future and all instances when injury or damage may occur.
Public Liability insurance is there to provide you peace of mind and protection against the costs associated with claims which may be bought against your business. A valuable investment to keep your business around for the long run.
Some of the common types of claims that your hospitality business may face include:
Slips and falls – potential hazards like spilt food, beverages and other slippery surfaces are all elements that can create an accidental disaster in a high traffic area.
Food poisoning – it is a hospitality owner’s nightmare, to hear that a customer (or customers) have experienced food poisoning from the food you have prepared or served them. This situation could not only cause irreparable damage to your businesses reputation, but also see your business face multiple lawsuits, and without a Public Liability insurance policy in place you would be left to meet payouts recovered by claimants.
Who can take out Public Liability Insurance?
Typically, most small to medium businesses can take out Public Liability insurance to protect their business against claims arising from a third-party for personal injury or damage to their property caused by your business’ negligent activities.
In the event your business did not have Public Liability insurance and was found at fault, the financial impact of compensation costs, court fees and legal expenses could be enough to close your business for good.
What factors affect the price of a policy?
There are a variety of factors that insurers will take into consideration when calculating the price of a Public Liability insurance policy premium. No two businesses are the same, each with its own unique circumstances and the same theory applies when it comes to policy pricing.
Risk is one of the major factors that impacts pricing, with the higher the level of risk your business is exposed to, the higher the premium and vice versa. Within the hospitality industry, the type of service and products you supply will help determine the level of risk your business poses for an insurer.
The number of employees your business has may also be a determining factor when it comes to pricing and typically the more employees you have, the higher the chance for things to go wrong. Having more staff increases the chance for someone to cause an accident which may result in a Public Liability claim. Along with size, the amount of revenue your business makes can affect the price of your policy.
You’ve worked hard to establish your hospitality business – that’s why it is important to have a solid risk management plan in place to ensure it’s protected for the long run. Public Liability insurance can provide your business peace of mind and financial protection when your business needs it most.
To receive an accurate quote for Public Liability insurance for your hospitality business, jump online or call to receive multiple quotes in minutes from some of Australia’s top insurers.
* As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.