Every organisation ought to have financial cover in place in the event of a worst-case scenario. But the hospitality industry is a different beast. Insurance isn’t a choice for businesses in this field: it’s a necessity to remain financially afloat. Accidents and incidents in this line of work can have catastrophic consequences if you don’t have the right cover to protect you.

With this in mind, here are the different types of insurance that every business in the hospitality sector ought to consider investing in.

Contents and equipment insurance

Good quality contents and equipment insurance covers everything on the premises of your business – both inside and out. Anything considered to be particularly valuable ought to be included in the agreement, along with any temperature controlled stock (like food and drink supplies).

All money on the premises should also be covered by this type of insurance, as well as electronic equipment (computers, card machines, tills) and any supplies belonging to staff who work on site.

Business interruption insurance

 “Business interruption” is defined as an action that prevents a company from trading to the best of their ability, which can hamper trading and affect profit margins. Examples of business interruption include things like theft, vandalism, or damage that directly leads to a reduction in income.

Hospitality companies can benefit enormously from business interruption insurance, which covers any costs that are required to recover from related setbacks.

Employers’ liability insurance

Employers’ liability insurance is a legal requirement and must be obtained by all businesses, regardless of sector.

This type of agreement covers all employees in the event of injury or illness, and also protects your company against the cost of compensation claims made against the business. This means that if a member of staff requests money, the organisation does not get into financial difficulty as a result.

Public liability insurance

As a hospitality organisation, you’ll spend a great deal of time dealing with the public, and may have thousands of people on site at any one time. With this in mind, an adequate level of public liability insurance is essential.

Companies in the hospitality sector might face all sorts of claims made against them by members of the public, be it for illness suffered as a result of eating food or a fall suffered on business premises. Public liability insurance covers you against these eventualities, so you can rest assured that your business is protected.

Other types of cover

Hospitality is a broad field, so you may wish to invest in added policies that cover particular areas exclusive to your business. Examples include specialised insurance for leisure centres and swimming pools, or cyber liability which provides protection from cyberattacks, hackers and malware.

Nabarro Poole specialise in supporting hospitality businesses by handling all their financial requirements. Our sector-specific experience means our Manchester accountants are readily equipped to serve businesses operating in this industry. Give us a call on 0161 998 4276 for more information or drop us a line using our contact form.