When it comes to food industry insurance – be that caterers’ insurance, restaurant insurance, café insurance or takeaway insurance – you need to find an insurance provider that can blend three vital elements:
- Competitively priced cover
- Industry expertise and experience
- Reliability of cover
It’s tempting to think of these elements as being basic, universal even. But as we have seen with the unexpected demise of prominent players in the hospitality insurance market such as Gable Insurance, the situation is not as straightforward as one might imagine.
Gable’s failure once again highlighted why here at City Underwriters Limited we only use A-rated insurance companies for our pub, café caterers’ and other hospitality industry insurance schemes. Of course, as we have already said, there’s more than just reliability of cover when it comes to getting high-quality insurance, and in this blog we’ll look at the other key ingredients that go to making up great hospitality industry insurance.
Competitively Priced Cover
The margins in businesses such as cafés, takeaways, pubs and wine bars can be thin and levels of competition fierce. In such an environment saving money on essentials such as business insurance is key. You need to look beyond headline prices, however, if saving a few pounds now isn’t going to end up costing you a significant amount in the future. So, when getting a pub, takeaway or caterers’ insurance quote here’s a few things that are worth considering:
- Does the insurance policy cover your specific needs? Appealing headline premium quotes are great, but it’s always worth checking that your specific needs – be that stock insurance, glass/window insurance or money insurance – are included if you need them
- How flexible is the cover? Does it have the in-built capacity to grow with your business or will it stifle growth by restricting your level of cover? Also, does your cover allow for seasonal variations? Pubs, restaurants, caterers and other hospitality industry businesses often need to increase levels of stock around Christmas and Easter and ideally you want your insurance cover to automatically allow for this
- Does it cover you for business interruption?* In any food preparation business, fire is a constant threat and if you are serving alcohol your license can be revoked at any time. High-quality hospitality industry insurance will protect you from these business interruption risks so they are well-worth having on any policy you take out
- Liability cover – as you are doubtless aware, if you have staff then employers’ liability cover is a legal requirement, but what about public liability insurance and product liability insurance cover? With members of the public coming in and out of your establishment or with them consuming your products, the peace of mind that comes with having £2,000,000 of liability cover in place is substantial so it’s worth ensuring that such protection is in place
Industry Expertise and Experience
Pubs, caterers, cafés and restaurants are complex businesses with a range of composite and highly-specific insurance needs. Such is the complexity of these businesses that many of them will not know precisely what it is that they need to cover and it can even be beyond the knowledge of some insurance brokers – nobody can have a level of expertise in everything, after all. Experience also counts for a lot: a relatively recent entrant into as multifaceted a sector as the hospitality industry insurance market may have access to the appropriate covers, but do they have the relevant industry experience to be able to recommend cover for specific, potentially unforeseen circumstances? When choosing who to place your pub, café, wine bar or caterers’ insurance with, ask the following questions:
- How long have they been writing this sort of business? As we have said, experience can count for a great deal in this sector so it’s worth finding out not just how long they been writing this sort of business, but how long has the person you’re dealing with been doing it for? If the business’s team is made of individuals with long track records in dealing with these polices, then you can be sure you’re in good hands
- How many clients and what sort of hospitality industry clients do they have? A company may have been offering caterers’ insurance for decade but if they haven’t actually written much in the way of business, then that longevity of offering is not only misleading but positively worrying. Equally, not all hospitality industry businesses are the same. The insurance needs of a pub and chip shop may have some similarities but are obviously markedly differently and it’s worth knowing that the policy provider knows the specific risks of the business you are working with
- Where are they sourcing their cover from? Quality cover is dependent on quality insurers and, as we mentioned above regarding Gable, it’s always good to know that your policy is underwritten by rated insurers
Like to know more about getting great hospitality insurance?
Well, we hope that’s given you some help with getting great hospitality insurance. If you’d like to know more about City Underwriter’s Limited caterers’ insurance, pub insurance, café or take away insurance, including chip shop insurance, then please call us today on 0800 3081 044 or send us an email by clicking here.