5 Insurance Mistakes Hospitality Businesses Can’t Afford to Make

Running a food business is hard work, and sometimes insurance is the last thing on your mind until something goes wrong. A quick check now can save a lot of headaches later.

Here are five common insurance mistakes that many hospitality businesses make — and how to avoid them.

1. Underinsuring your assets
It’s easy to underestimate the true value of your equipment, stock, and fit-out. If you haven’t reviewed your asset values in a while, your cover may fall short when you need it most. Make it a habit to reassess your assets to stay protected regularly.

2. Ignoring business interruption insurance
Disruptions happen — whether it’s a fire, flood or an unexpected shutdown. Business interruption cover helps protect your income and operating costs, allowing you to recover quickly without added stress.

3. Neglecting cyber insurance
With more online bookings, POS systems and customer data than ever, the risk of cyber threats is real. A single data breach can cost thousands and damage your reputation. Cyber insurance serves as a crucial safety net.

4. Overlooking liability coverage
From slips and trips to food-related claims, liability cover is crucial for restaurants and catering businesses. Ensure you’ve sufficient coverage tailored to your actual risks, not just a generic policy.

5. Not reviewing your policies
Businesses evolve. So do the risks. If you haven’t checked your policies lately, now’s the time. Regular reviews ensure you’re not caught off guard when things change.

By steering clear of these pitfalls, you’ll help protect your business and keep things running smoothly, no matter what life throws at you.

For tailored insurance advice that understands the hospitality industry, Gallagher is ready to help.

If you’d like an expert to help you sort it out, Gallagher’s team knows hospitality inside out — and they’re ready to help you find peace of mind.

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