Practical Steps for the Hospitality Industry during Covid-19

The hospitality industry was hit hard by Covid-19. Venues shut, customers stayed away, and casual staff were stood down or let go. During that time, smart Hospitality Venues reviewed their insurance coverage as part of their management processes. However, a review of your insurance cover should be a regular part of your management processes.

So, here are three key areas to consider if you’re thinking about reviewing your insurance program.

Liability Insurance Discounts

When times were tough and venues were forced to close, the team at Clear Insurance were successful in negotiating good premium discounts for our hospitality clients. They did so by amending their public and products liability policies to “non-operational”.

Amending public and products liability policies to “non-operational” was agreed to by some Insurers on the provision that when the hospitality venue is operational in the future, the policy reverts to “operational” and an additional premium is payable when trading commences.

Note: various Insurers have differing premium discounting abilities however, the specialist hospitality underwriting agencies had a more positive approach to allowing this discount.

Business Continuity Planning & Risk Management tips for non-trading licensed venues

We recommend that all licensed venues review their business continuity plan (BCP) to ensure it is current and update the delegated roles in the BCP, given that staff may change.

Key points of consideration in your BCP:

1. People first! look after your key assets
2. Assemble your BCP team
3. Communicate, communicate, communicate
4. Review existing plans
5. Prioritise Key Business Functions

Property Risk Management

Managing your property risk exposure is crucial when licensed venues are non-operational. The advice we received from Chubb Insurance for our hospitality clients is set out below.

Recommended property risk management action items:

i) Minimum 1 person to remain on-site during normal business hours;

Note: If this is not feasible recommend minimum twice daily visits and inspections conducted at the insured premises

ii) Main Gas supply shut off (if cooking not being performed or gas not used for power/heating etc);

iii) Other utilities remain connected;

iv) All alarms, smoke detection, sprinkler systems to remain activated; v) Cash removed from the premises.

Feel free to contact Lisa Carter for further assistance.