Hospitality Insurance

What is Hospitality Insurance?

Hospitality insurance is insurance designed for the hospitality industry. It covers businesses such as hotels, restaurants, pubs, bed-and-breakfasts, guesthouses, and more against common risks in the industry. This short-term insurance product is widely available in South Africa from many business insurance providers.

What Kind of Insurance Does a Hotel Need?

A short-term hospitality business cover plan from a reputable South African insurer is ideal. It will cover all your major risks, so you can enjoy peace of mind.

How Does Hospitality Insurance Work?

Insurance for the hospitality industry covers your hospitality business against common perils such as fire, theft, third-party claims, and more. When an owner of a hospitality business buys a hospitality insurance policy, they agree to pay the insurer a monthly premium amount.

In return, the insurer agrees to cover events listed in the policy documents. These events are often sudden and unexpected events where the company experiences loss or damages. The policy often requires that owners take certain steps in order to be covered. For example, they may require that an alarm system be installed in your restaurant and that it be switched on at the end of each workday.

What Does Hospitality Insurance Cover?

Because it is designed for the hospitality sector, this type of business insurance covers risks unique to the industry. A good hospitality cover policy will include business interruption and deterioration of stock cover. When a restaurant owner has to close their doors due to an unforeseen but insured event, their business interruption claims will result in financial compensation for the time they could not work.

Similarly, should a hotel owner find that their stock of potatoes has gone bad overnight, they can claim for the financial damages through their hospitality insurance coverage. Owners in Cape Town and Gauteng will find niche products that cover their hospitality risks especially useful in unprecedented global crises such as the 2020 Pandemic.

Some hospitality policies include cover for the commercial property, public liability, and assets, too. The policies do not usually include cover for business vehicles or for abnormal risks such as pandemics. Having insurance for your hospitality business can save you millions of Rands in losses.

Why is Insurance for Your Hospitality Business Important?

In the hospitality industry, you are liable not only for your own safety but also for your employees and the public interacting with you on your business premises. You need cover specifically designed for your field of work to cover all your bases when things go wrong.

Owners of establishments also understand how severe losses and damages can become in unforeseen events such as a fire or explosion. Comprehensive insurance solutions could save your establishment when disaster strikes. In today’s modern world, businesses are even at risk for cyber liability and theft.

Types of Businesses Covered Under Hospitality Insurance

Not all policies are the same. It’s important to compare what you get from different insurers before settling on a plan. These are common business types and the coverage you can get from a typical hospitality policy:

• Airbnb Insurance
• B&B Insurance
• Boutique Hotels Insurance
• Conference Centres Insurance
• Game Farms Insurance
• Guesthouse Insurance
• Hotel Insurance
• Pub & Bar Insurance
• Restaurant Insurance
• Wedding Venues Insurance

How Much Does Hospitality Insurance Cost?

Get a hospitality insurance quote by filling in the form at the top of this page to get a price directly from a trusted South African insurance company. Prices will differ depending on your company size and operations, your location, your needs, and your business risk profile. It’s best to get a quote directly from the insurer to assess how much it will cost you.

Luckily, South Africa’s insurance industry is highly competitive, meaning that insurance companies are willing to offer all sorts of kickbacks and discounts to win you over. If you read through your policy carefully before signing, you won’t end up paying too much for too little cover.