Some of the risks are apparent: a customer falls or falls ill; machinery breaks down or sets on fire. Some less so: employee theft of money, theft of food or alcohol.
One area that hospitality businesses are typically not covered well enough for is business interruption, says Vanzo.
“Business interruption insurance essentially covers your business should an insurable event out of your control cause you to close for a spell,” says Vanzo.
“It’s usually storm or fire-related insurable events, and business interruption insurance may help cover the ongoing business overhead while the business gets back on its feet.”
Even when businesses believe they have suitable cover in place, Vanzo recommends getting a broker to review the policies and your business circumstances to ensure you’re adequately covered.
“I see many clients who believe they’ve done the right thing and have taken out the correct policies, but when we delve deeper into the PDS (product disclaimer statement) we find they’re not covered appropriately for theft or contents.
“Theft or contents and money is not covered automatic, neither is flood. Machinery breakdown insurance doesn’t necessarily cover wear and tear, and of course, underinsurance is an issue with many policies.”
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