Hospitality Insurance 101
Whatever type or scope of insurance you are looking for to protect your restaurant, pub, lounge or nightclub, we invite you to use Our Knowledge to Your Advantage. The one-two punch of our vast global resources and solid local relationships will ensure you receive the best coverage, best value and best service. Our specialized HUB International HOSPITALITY insurance practice will ensure you receive the best possible solution tailored to your needs and your circumstances.
That’s why we’re pleased to present Hospitality Insurance 101. We want you to have a good head start on some of the basics of HOSPITALITY sector insurance.
The Skinny on Hospitality Insurance
Insurance for Restaurant, Bar and Pub Operators
We want all of our clients to be well-informed about their HOSPITALITY Insurance needs and options. For owners and operators of restaurants, pubs, lounges and other hospitality ventures, we want you to know what you really need to be protected.
Frequently Asked Questions
Q. What coverage should I consider when reviewing my insurance?
A. The standard coverage any Hospitality business should consider relates to:
- Property (Contents, Equipment, Improvements & Betterments, Electronic Data Processing Equipment, Outdoor Property & Stock);
- Business Interruption (a 12 month indemnity period is becoming more unrealistic in order to rebuild premises – we recommend you consider an increased indemnity period such as 18 or 24 months);
- Comprehensive Crime Coverage (Most Employee Dishonesty limits should be revisited to reflect a realistic loss. Usually Employee Dishonesty claims occur over an extended period of time and are not limited to one person);
- Equipment Breakdown (It is important to include a stock spoilage limit reflective of your stock in cold storage);
- Commercial General Liability (It is important to read the fine print and watch out for liquor liability limitations and forcible ejection exclusions);
- Employment Practices Liability (EPL) – This form of coverage protects Employers against claims / allegations made by employees, former employees or even potential employees. Typical claims brought forth are discrimination, wrongful termination, and sexual harassment.
Q. Why is it important to have “best in class” insurance coverage for your Hospitality Business?
A. When it comes to your insurance policy, the fine print truly counts. Small changes in the policy wording or the insurance form being used can drastically impact the outcome of a claim. Even with the best risk management policies in place, one can never foresee when a claim might occur so it is important to align yourself with the best insurance coverage available to protect your assets, bottom line and reputation.
Q. What is claim service and why is it important?
A. Most claims happen outside of office hours. Does your broker have 24 hour claim service? Do they have the actual knowledge to assist you with appointing an Adjuster, Lawyer and other experts you may need on the weekend or before or after hours? HUB International dedicates a claims department that works alongside your Account Executive to guide you through the process and bring your claims to a speedy resolution.
Q. What should you pay special attention to in reviewing your insurance?
A. Not all insurance policies are the same. It is not always about price, but what you get for that price. Three aspects you want to look at closely when shopping around are: the exclusions of the policy; the brokers’ knowledge of your industry; and the claims process / expectations.
Did You Know?
…That exclusions are the Fine Print. The most important part of any All Risks Policy is not what is covered but what is excluded. The structure of an All Risk policy is such that everything is covered other than what it is excluded. It is critical to determine what you are not covered for. Read and ask questions about the exclusions, as this is the fine print that needs to be understood.
…Who you are insured by? There are several types of Insurer-Broker relations. Are the actual Underwriters in Canada? What is their financial strength? Do they have the required Hospitality sector expertise to represent you in a liability matter? Where will claims be processed and handled? Is there an additional intermediary whom you are not aware of? You need to ask these questions before you purchase the insurance - otherwise you may find that when you really need your policy, the people you are dealing with on the claim are far removed from both you and your Insurance Broker.
For everything you need to know about HOSPITALITY Insurance and for the best coverage, value and service, contact us today.