Understanding hospitality insurance
Comprehensive protection for pubs, hotels, restaurants, bars and more
As a hospitality business owner or manager you’re involved in a broad industry with various categories of business all operating within the larger service industry. That could mean you operate a lodgings business, hotel, bar, restaurant, pub, theme park, or any other business within the hospitality umbrella. Whether you own or manage a licensed or non-licensed premise, you are of course aware that you and your business are at risk of potential incidences such as malicious damage or theft, which will need to considered when looking for a personalised business insurance policy.
Choosing the right insurance package to suit your hospitality business is therefore essential. At The Insurance Octopus, we can help you understand your options when it comes to finding the most efficient and cost-effective business insurance policy.
What your hospitality insurance policy includes
Employers’ Liability cover
If you have one or more employees within your hospitality business then by law you are required to have employer’s liability insurance. This cover is a standard £10m and will protect you (the employer) against claims from your staff if they are hurt when working for you.
Public & Products Liability insurance
Public Liability insurance covers you, as the business owner, against claims resulting in bodily injury. Product liability insurance for hospitality businesses provides protection should your products (namely food and drink) cause harm or injury thus leading to a claim. Both provide cover for up to £5m.
Business Money cover
Business Money covers your business cash whilst on the premises during working hours. The money has to be kept within a safe whilst on your premises (subject to limits within the Policy).
This insures the building premises, outbuildings, landlord’s fixtures and fittings.
Contents cover for hospitality businesses
Contents cover can protect trade contents, customer goods, fixtures and fittings, computer and electronic business equipment. If you own a pub which serves first-class food as well as alcohol, this type of cover also protects the deterioration of stock.
Loss of License
In the unfortunate event that you experience loss of income resulting from non-renewal or withdrawal of your license to trade due to causes beyond your control, this type of cover is relevant. As a licensed premises owner or manager you’ll find this cover useful if unexpected circumstances happen where your license could be revoked or not renewed, which could have financial consequences.
Business Interruption cover
This covers the loss of your gross income due to loss or damage at the premises. The usual limit is set in blocks of 12/24/36 months depending on how long the business would take to recover from the loss or damage.
Residential Accommodation cover
As long as they live at the premises being insured, this additional option covers your family and guests’ personal belongings, contents and money (limited cover). If your business has guest rooms, it will cover personal possessions up to a specified limit in the event of a fire, flood or storm damage.
All Risks cover
This is an optional cover which includes items out in the open within your territorial limits, such as garden furniture, chairs and umbrellas.
Terrorism cover standard does not provide cover for any loss or damage caused by direct or indirect acts of terrorism. However, there is an optional extension for premises in England, Wales and Scotland but you must request this cover if required.
Benefits of having hospitality insurance
When running a licensed or non-licensed business, the potential risks of bodily injury or harm to you, your staff or your customers occurring may increase for various reasons. People mixing with alcohol for example can at times be a recipe for disaster causing a wide variety of problems as you can imagine.
Examples include such as the following:
• Assaults on your staff
• Theft within your business premises
• If you prepare and serve food, a customer may decide they have suffered ill health from eating it
• Staff could be injured whilst going about their everyday duties
At The Insurance Octopus, we cannot stop any of these unfortunate events happening, but we can help you find a business insurance policy that provides the right financial protection for your hospitality business. Whether you’re trading as a restaurant, public house, bar or other hospitality business type, we’ve got the expertise to help find the right cover for you.
Types of hospitality businesses we cover
At The Insurance Octopus, our hospitality insurance is designed for small businesses including: pubs, restaurants, bars, hotels, bed & breakfasts, wine bars, nightclubs and many more. If you operate a business in any hospitality sector then we’ll be able to provide you with the comprehensive cover you and your business need.
Hospitality business risks
Everyday risks can also be associated with natural causes which could result in your hospitality business being temporarily incapable of operating. In these types of situations, your staff could potentially hold you legally accountable which a court of law may also agree. In other situations, you could have suffered serious stock losses as well as a loss of income.
Why choose The Insurance Octopus for Hospitality Insurance?
We proudly make buying insurance different and our cover comes with a range of benefits.
Up to £5 million of cover
Claims can be costly, that’s why we offer up to £5 million worth of public liability cover for businesses in a range of different hospitality trades.
Fast specific cover
To help save you both time and money. We compare prices from a range of different insurers so you don’t have to.
A specialist who knows your industry
We'll connect you with an agent who specialises in your field. They understand many of the challenges you face, and can truly get to grips with the type of cover you need.
Easy claims process
Accidents can happen, so when something does go wrong you can rest easy knowing our team is on hand to make the claims process as quick and stress free as possible.
Octopus customer rewards
We pride ourselves on the value we offer our customers, and with Octopus Customer rewards we give our customers a few additional benefits to their insurance such as discounts and offers to save them money.
No mid term fees, ever
We don’t charge any mid-term fees at all during the life of your policy – so there are no hidden fees following any changes you might need to make.
Hospitality Insurance FAQ's
Get the answers you're looking for
Explain Business Interruption Insurance for hospitality businesses
If your premises suffer from an insured loss such as a fire, business interruption cover will protect any resulting reduction to your gross income. The cover limit is usually provided in set blocks of either 12, 24 or 36 months, which depend on the length of time it would take for your business to recover from the insured incident. This will ensure your business is able to return to its financial position.
Can you cover me if I expand to another location?
Yes we can arrange cover for additional locations as your business grows. Speak to one of our customer service team to discuss your needs.
How much does hospitality insurance cost?
Hospitality insurance is based on the individual needs of your business, so a personalised policy is necessary. Here at The Insurance Octopus, we will work with you to discuss the various options, so that we can provide the most cost-effective business insurance, which will efficiently meet the requirements of your business and ensure you are adequately covered against any loss.
How hospitality insurance works
Examples of Hospitality Insurance in action
A £5,000 food disaster averted
A deli’s power supply was interrupted overnight and no backup power supply was available to take over when the external supply went down. When the staff arrived the following morning, they discovered that thousands of pounds worth of refrigerated stock had gone off. Fortunately, the company’s deterioration stock insurance was there to cover the £5,000 worth of meats, fish and other backup stock that was unsellable following the incident. This made it far easier for the business to get back on its feet following the power outage.
£10,000 tribunal worries resolved
A restaurant employee was dismissed after turning up for work late several times in a row without any good explanation. The former employee took the restaurant owners to court and was able to successfully prove that the company had not followed a fair dismissal procedure that gave him an adequate chance to rebut the allegations that had been made. Fortunately, the restaurant owners had commercial legal expenses insurance as part of their hospitality cover, which covered them for the £10,000 payout that they were required to make to their former employee at a tribunal in order to settle the case.