Why does a hospitality business need liability insurance?
In a hosptiality business... Sometimes things go wrong!
Here's 5 of the most common public liability claims AAMI's hospitality customers make
5. Hot spills
4. Injuries from objects (Including flying signs and falling umbrellas)
3. Food contamination
2. Foreign objects in food
(Usually to cover the cost of dental damage caused)
....And the number one most common public liability claim we get?
1. Slips, trips and falls
A sadly all-too-common risk for busy cafes, restaurants and more
Are you covered if something happens at your hospo business?
Learn more about AAMI's Public Liability Insurance (link below)
Insurance is issued by AAI ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI.
Read the Product Disclosure Statement before buying this insurance.
AAMI Does. Lucky you're with AAMI.
Explore Public Liability Insurance
Why does a hospitality business need liability insurance?
If you’re in hospitality, whether your business is big or small, public interaction is at the core of what you do — and that can carry a certain type of risk. Here’s why liability insurance can be important for your business.
What is public liability insurance?
If someone is injured or their property is damaged while they’re visiting your business, Public Liability Insurance can provide cover for:
- legal costs
- medical expenses and damages
- the expenses incurred by giving first aid to others, and
- compensation for any damaged or destroyed customer property.
How to identify the risks
As a hospitality professional you’ll have:
- evaluated the particular risks of your operation and the premises it’s located in
- come up with a plan to deal with foreseeable incidents, and
- trained your staff for events where things might go wrong.
However, with so many customers and staff coming and going, the risks of accidents such as trips and falls can still be uncomfortably high, considering the potentially significant consequences.
But, the right public liability insurance can give you the peace of mind you need to successfully run a very busy hospitality operation - so that becoming too popular won't be something you have to worry about.
Slips, trips, and falls
A large number of these injuries are caused by customers slipping on wet floors, often after closing time when the staff were cleaning up for the day. The customers did not realise the restaurant was closed and had slipped on the wet floor as they entered. To avoid this happening, always ensure you have put up warning signs, even when you’re closed.
Foreign objects in food
These claims normally arise when the object causes an injury to a customer, such as damage to their teeth. Many claims have been caused by a wide range of unusual objects. AAMI has received claims where metal screws, pieces of perspex, metal shavings or fragments of wood have managed to find their way into foods. Olive pips or seeds left in dips or sauces have also caused dental damage claims.
Food contamination
Food poisoning claims are also reasonably common, particularly when they involve homemade products. AAMI has received many food poisoning claims caused by foods involving raw eggs, such as homemade custards and mayonnaises, or cured meats, such as salami.
Collapsing umbrellas and flying signs
While these are not as common, AAMI has also received many claims caused by an unsecured marquee, umbrella or ‘A-frame’ sign hitting and injuring a customer, or damaging their property.
Hot spills
AAMI has also received its fair share of claims where employees have accidentally spilled hot food or drinks on a customer, causing harm.
Read more:
- How much does public liability insurance cost?
- 8 business insurance options for cafes, restaurants and takeaway shops
- 6 great things about running a small business
Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI Business Insurance. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.