Hong Kong bars and restaurants face unique challenges when it comes to defining and mitigating their operating risks. A comprehensive insurance solution is required that will apply to all the various risks presented in the hospitality industry.
Not only do hospitality businesses face the usual risks of damage to property, they are also susceptible to a larger assortment of liability exposures. Additional vulnerabilities consistent with serving food and alcohol may also need to be kept in mind. For a comprehensive solution for bar owners and restaurateurs, a commercial package policy should be considered that provides the following covers:
Commercial Property Insurance
This provides cover for the building (if owned), improvements to the property, the contents, loss of income and additional expenses.
Public Liability Insurance
Public Liability is typically the greater risk for hospitality businesses. Additional Alcohol Liability cover will be needed in the event your business is found liable for an alcohol-related injury or property damage. Serving any food products to the public naturally brings its own inherent risks, so additionally your business will need Food Poisoning cover if also serving to the public.
Equipment Breakdown Insurance
Bars and restaurants typically rely on expensive Heating, Air-conditioning systems and fridges to keep the environment comfortable for customers and the food products cold or frozen. When this equipment fails, the expenses associated with repairing or replacing this equipment should be covered by the insurance policy.
Data Theft / Cyber Liability Insurance
In today’s economy, the hospitality industry relies heavily on internet connectivity to transact business and communicate with vendors and customers. The threat of a data breach is ever-present and as such, the business owner should have Cyber Liability in place that provides cover if sensitive information is stolen by a hacker or disgruntled former employee.
Employment Practices Liability Insurance (EPLI)
Having Employment Practices Liability cover protects the business from accusations of discrimination, wrongful termination, failure to hire or promote, and other actions that can be brought by former employees, current employees, and job applicants that you did not hire. In the past, most EPLI actions were brought against larger employers, but in today’s litigious environment, no employer is immune to actions by employees.
All business owners risk significant capital and time when opening a hospitality business. Why risk financial devastation when something goes terribly wrong when you can mange this risk.
Speak to your Trusted Union insurance adviser about your bar or restaurant insurance to get the free no obligation quote