Did you know that the latest Census results indicate that the hospitality sector accounts for just under 7% of Australia’s total working population and that in 2017, the hospitality sector was the 4th largest employer in Australia?
These figures mean that the hospitality sector has a big influence on the growth of jobs in Australia, so are we doing enough to help these hospitality SMEs manage their risks?
One important element of managing risk is to ensure that SMEs have all the right insurance policies in place, so that if a disaster occurs, they are covered. The problem is knowing which policies are suitable for a hospitality business.
To highlight how different types of insurance can help to minimise financial risk, let’s take a light-hearted look at a day in the life of a restaurant owner (George), whose luck has finally run out, all in one day!
A day in the life of restaurant owner, George.
After his morning walk, George heads off to his family business, a busy French restaurant in the heart of the city. When George arrives he walks into one of his freezers and finds that all his meat has spoiled overnight, the freezer had stopped working. After quickly sorting out the meat problem and calling in an emergency electrician, George starts his day $2,500 down due to the cost of the meat and because he now needs a new freezer. However, George remembers that his insurance policies cover the cost of the replacement stock and his broken freezer, George can relax as he will make good on these losses.
Now that these problems are solved, and before he can check on today’s bookings, his manager tells him that he has noticed money missing from the till behind the bar. His chef also informs him that there is a discrepancy between the kitchen’s food purchase orders and the actual delivery, something that he has noticed occurring regularly from one supplier. After dealing with these two problems, George’s only consolation is that his insurance policies cover his restaurant from theft, both from employees or suppliers.
Checking in with his restaurant manager near the end of the lunchtime service, George takes a call from a lawyer representing one of his customers who claims that they suffered food poisoning after eating at his restaurant a week ago. After dealing with this problem (and calling his lawyers), George thinks himself lucky that he has Public and Product Liability insurance, which will help him through this catastrophe.
Towards the end of his extremely stressful day, one of the apprentices in the kitchen slips on the floor and injures his leg. After seeing him off in an ambulance, George hopes that he has paid the premiums for his Worker’s Compensation policy.
As George’s day finally comes to an end and he walks towards his car, he reflects on all the dramas from the day. Grateful that no-one tried to burn down his restaurant and that it wasn’t swept away in flood, George cracks a smile, because he knows that he has both Property Damage and Business Interruption insurance, so it’s all covered!
Are you covered like our friend George? Talk to one of our insurance specialists today to find out.
To speak to an insurance specialist about your business needs, talk to an insurance specialist today.
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.