Restaurants are one of the most competitive businesses to run. Restaurants also hold one of the worst mortality rates in business. Some restaurants shut their doors after lasting for only a few months; others continue for a year or two before falling victim to heavy competition and low profits.
Old eateries can become defunct amidst the challenge of new dining hot spots.
Restaurants face an even higher risk of failure since the outbreak of COVID 19. According to one report, Australian restaurant revenue went down by 25.1 per cent, from $19.7 billion in 2018-19 to $15.0 billion in 2019-20. Australian Bureau of Statistics revealed that over a third of Australia’s accommodation and food service employees lost their job between March and April.
Now that cafes and restaurants all over Australia are up and trading again, savvy hospitality operators are re-working their marketing, menu, and costs to survive in this super-competitive landscape.
However, one factor many restaurant owners overlook is suitable insurance.
Providing Security when something goes wrong:
Restaurant Insurance can provide financial support if accidents occur and minimize many risks. Say a fire breakout damages your property, a customer falls ill from food served at your resturant or someone falls on a wet floor at your restaurant?
If you are a small restaurant, bearing such costly claims can be financially devastating. Business policies such as commercial property insurance and public liability insurance can cover many of the expenses and costs caused by damage arising from your hospitality business operations.
Overall, Restaurant insurance can provide security and peace of mind when something goes wrong.
Minimizing Financial Loss:
Many restaurant insurance covers may minimise the financial loss from potentially disastrous claims on your business. From repairing equipment to rebuilding business property suitable hospitality business insurance can help your restaurant or café survive.
Without suitable business insurance, you may be liable to fork out money for legal fees, medical expenses, and property replacement costs. If you are not able to cover this, it may lead to your restaurant closing. Suitable commercial cover can help keep your restaurant going when a client or third party makes a claim against you.
Increasing the Credibility of Your Restaurant:
If you show your catering clients proof of insurance, it ensures peace of mind and may boost your business’s credibility. They know that they are dealing with an insured business, and that your operations are covered. Some large clients who use restaurants for events or regularly enjoy catering from restaurants and other hospitality businesses require proof of product and public liability insurance.
Although suitable business insurance does not directly influence a restaurants productivity, if something goes wrong it can be crucial for survival.
What do you think? Let us know by commenting below!
*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.