Things to Know about Hospitality Insurance in the GTA
There are many hospitality businesses in the GTA and staying ahead of your competitors can be a difficult task. Plus, when you add in other business factors like hospitality insurance, it can be hard to make a profit unless you cut costs in as many places as possible. However, cutting costs on insurance may not be the best risk management strategy for a hospitality business in the Greater Toronto area. In fact, without the right coverage you could be facing problems that result in financial nightmares. Let’s take the example of Naomi and Alan S.
Alan and Naomi worked very hard for a number of years and they shared a beautiful dream. If only they could run a quaint little bed and breakfast establishment, they would be very happy. Both Naomi and Alan were tired of working for others and taking orders from bosses. They really wanted a business of their own and a B&B was the perfect solution to this problem.
One day, Naomi received a letter informing her of an inheritance from her aunt (who recently died). She had no idea she would receive so much money and Naomi and Alan were very excited. They bought an older B&B that was in need of upgrades and improvements. The price on the property was very reasonable and they had money left over for upgrades.
Fred wanted to cut costs by getting the cheapest hospitality business insurance, but Naomi would have no part of it. It was her money and she wanted to make sure the B&B was fully insured against all hazards, so she went to an independent broker who was an expert in risk management. Fred was not happy with the decision, but Naomi would not budge on this matter. She obtained a comprehensive insurance policy customized for the B&B industry and their specific business needs. In addition, the insurance didn’t cost nowhere near what Fred had expected.
The B&B opened for business and was a huge success. This continued for almost a year until a tornado hit nearby. It caused significant damage to the B&B roof and they were without electricity for several days. It took several weeks to make the repairs and during this time, they missed out on a lot of summer business. However, since the couple had business interruption insurance, they were reimbursed for their losses.
What is Hospitality Insurance?
Does your business provide temporary lodging to guests? Maybe you serve food or drink? You have specific risk factors which must be addressed if you want to stay in business for a long time. A hospitality business policy will protect you from most hazards.
Who Needs This Kind of Insurance?
If your business is hospitality related it needs insurance just for that industry. Here are some of the businesses which should consider coverage:
- Motels
- Bars
- Hotels
- Taverns
- Restaurants
- Concert venues
- Bed and Breakfasts
- Cafes
- Bars
- Resorts
- Dance clubs
- Nightclub
Are There Standard Hospitality Business Insurance Policies?
When you insure a hospitality business, the services you provide are an important consideration. For example, a restaurant may face many different factors that a hotel does not and vice versa. However, here are some typical coverage items you may need:
- General liability insurance – protects you from slip and fall lawsuits and other accidents which may happen to your guests.
- Business property insurance
- Building contents – this may include computers, office equipment, and security systems
- Personal property of guests
Options for Hospitality Insurance
You may need a wide range of insurance options in order to fully protect your business and financial interests, such as:,
- Power interruption insurance
- Commercial auto insurance
- Sidewalks, patios, outbuildings, landscape features, and parking lots
- Business interruption coverage
- Peak season coverage – you may need additional liability protection when you are at the height of the hospitality season. This amount can be lowered back down during other times of the year.
- Crime insurance
- Umbrella insurance policy – covers many kinds of liability issues and may pay liability claims in excess of your general liability limits.
- Newly acquired property
- Liquor liability
- Forcible ejection injury or damage claims
- Equipment and machinery breakdown
- Replacement cost coverage
- Food spoilage protection – can be part of a direct damage endorsement
- Ordinance or by-law insurance – can help you make upgrades or improvements to meet local building codes.
Finding the Right Hospitality Industry Insurance
When you need insurance for your lodging, eating, or drinking establishment, you can trust an independent insurance agency like Multi risk Insurance Brokers. Because we are independent insurance professionals we are in a position to shop for the best coverage for your business.
We have many fine insurance companies in which to choose, and we will show you the best options in the Greater Toronto area. This not only gives you excellent coverage but some of the most affordable insurance rates in the business.
Multi risk Insurance Brokers also offers services like financial planning and risk management. We are here to help you take care of your business risk factors in the most efficient and economical ways. To learn about a hospitality business insurance quote, fill out our quote form and we’ll follow up by contacting you. You may also call our office at 416-224-2800.