How Food & Accommodation and Insurance Connect:
If you own a business in the thriving Food Services & Accommodation industry, you’ll need a comprehensive insurance policy that protects you from industry-specific risks and hazards.
From an employee slipping on a wet kitchen floor to a customer falling ill due to food consumed at your restaurant or a natural disaster or fire forcing you to close up shop temporarily, there are numerous risks inherent to the Food Services & Accommodation industry.
Read on to find out more about the risks associated with the food and accommodation industry.
Who Needs Food & Accommodation Insurance?
Food Services & Accommodation Insurance policies come in handy if you own one of the following types of businesses:
- Hotel
- Bed and Breakfast
- Inn
- Rooming/Boarding House
- RV Park
- Campground
- Resort
- Food Service Contractor
- Bar
- Nightclub
- Restaurant
- Café
- Snack Bar
- Non-alcoholic Beverage Bar
- Food Cart
- Food Truck
- Catering
Still not sure what you need?
CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.
What Risks Are Associated With the Food & Accommodation Industry?
Achieving success in the food and accommodation industry does not come without its risks. There are many aspects to the industry that require both razor-thin margins and a noticeable level of difficulty. Take, for example, the need for property. Regardless of what type of business you own in this industry, property is essential. A restaurant must have a physical location, even if that location is an on-the-move food truck. A hotel or lodge of some kind simply cannot operate without having somewhere for potential guests to stay.
Operating out of a physical location, whether owned or not, immediately creates risk. Numerous restaurants have gone out of business after a devastating fire. Many hotels have been forced to close their doors after a flood or tornado caused damage that exceeded their net worth. It is fundamental that businesses in this industry get insurance to mitigate the risk of owning or renting property. This can include various forms that cover different types of property, such as Commercial Auto Insurance for owners of food trucks or Commercial Property Insurance for businesses that rent, own or lease a property.
Other significant risks include personal injuries that might occur on your property. Whether it’s a restaurant or a hotel, the food and accommodation industry relies on a steady stream of customers. This ultimately means that the chances of someone getting injured while on the property increases with each person that enters the door. Whether it’s food poisoning or a slip and a fall from dropped food or a wet floor, a customer injured on your property could file a claim against your business. Given the number of high-profile examples of this in the past, any business should be extra cautious. Certain insurance types, such as General Liability Insurance, are designed to protect against the unknowns.
Regardless of what type of business you own in the food and accommodations industry, mitigating risks should be a priority. As profit margins are typically small, it is best for companies in this industry to protect themselves, their employees and their customers.
How Much Does Food & Accommodation Insurance Cost?
The cost of Food Services & Accommodation Insurance will vary based on the specifics of your business, such as location, the number of employees and whether or not you serve alcohol on the premises.
The typical business owner in this industry can expect annual premiums to range from a few thousand dollars to tens of thousands of dollars.
Here are a few examples of what other businesses are paying: