Expert Q&A – hospitality insurance Expert Q&A – hospitality insurance

"Hospitality businesses are often open to the public, employ staff and rely heavily on their premises, equipment and stock to operate day to day.

That means there are several areas where things can go wrong. A customer could be injured, equipment could break down or an unexpected event — like a flood, a fire or a break-in — could stop you trading altogether.

The right combination of covers depends on your business, so it's worth taking time to understand the risks that are most relevant to you."

"The most common covers we see hospitality businesses get are public liability insurance, employers' liability insurance, contents and equipment cover and business interruption insurance.

These are some of the covers hospitality businesses commonly consider. Whether they are suitable for your business will depend on your individual circumstances.

Every business is different, though. A small independent café won't necessarily have the same needs as a busy pub or a multi-room B&B."

"When customers are regularly visiting your premises, there's naturally more opportunity for accidents to happen.

A customer might slip on a wet floor, trip over a loose fixture or accidentally suffer damage to their belongings while on your premises.

Public liability insurance is one of the most common covers hospitality businesses look into because they're dealing with the public every day."

"If you employ staff, employers' liability insurance is something you should understand early on. Most businesses that employ people in the UK are legally obliged to have it.

Hospitality teams often work in busy environments involving hot surfaces, sharp equipment, lifting and carrying, so it's worth understanding your responsibilities as an employer."

"Many hospitality businesses focus on physical assets, but loss of income can be just as significant. If a fire, flood or another insured event means you can't open, the impact can be felt very quickly.

Business interruption insurance may help cover loss of income following certain insured events, subject to policy terms, conditions and indemnity periods."

"The answer depends on the type of business, but a few themes come up again and again.

For restaurants and cafés, equipment failures can be really disruptive. For pubs and wine bars, stock losses can be costly. For B&Bs, guest-related incidents and property issues are often front of mind.

What's important is understanding which risks would have the biggest effect on your business if they happened tomorrow."

"Absolutely. A business that starts with three employees and a small premises can look very different a couple of years later.

As you hire more people, expand your services, increase stock levels or open additional locations, it's worth reviewing your insurance regularly to make sure it still reflects how your business operates."

"Don't think about insurance as a tick-box exercise. Instead, think about what keeps your business running every day. Your people, your premises, your equipment, your stock and your customers.

Then ask yourself what would happen if one of those things were suddenly unavailable. That tends to be the best starting point when deciding which covers are worth exploring."