Hospitality Insurance
Most owners know their building is insured. Fewer have thought about how long they'd be out of business if something went wrong.
After a fire, flood or storm, the repairs are only part of the story. You may need approvals, trades, materials and a final clean and fit-out before a single room can be booked again. That can take longer than you'd think. Meanwhile, wages, loans and other costs don't stop.
That's what business interruption cover is for. Here's how to check yours.
1. Look at the indemnity period
This is how long the policy will pay out after an insured event. Twelve months might sound like plenty. Ask yourself whether you could realistically be rebuilt, re-fitted and fully trading again in that time.
2. Check the income figure
The amount insured should reflect what the business really earns now. If you've had a busy year, raised your rates or added rooms or a restaurant, the old figure may be too low.
3. Make sure every part of the business is included
Rooms, a bar, a restaurant and function space bring in income in different ways. Check that each one is covered.
4. Ask what triggers the cover
Policies are specific about which events count. Make sure the ones you're most worried about, like fire, storm and flood, are included, and read the exclusions.
5. Tell your insurer about changes
Renovations, new events or extended trading hours can change the risk. Updating your insurer is quick and avoids arguments later.
Send us your policy
If you own or run a hotel or motel, send us your policy. We'll go through it with you and tell you where the gaps might be.
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Disclaimer: The information provided on this page is general advice only and does not take into account your personal circumstances, objectives or needs. Before making any decision about insurance, consider the relevant Product Disclosure Statement and Target Market Determination and whether the product is suitable for you. Insurance cover is subject to the terms, conditions, limits and exclusions of the policy.
