Top Tip: Review your business insurance
We asked Dave Jack to give us some advice on hospitality insurance especially with reference to the damage caused by natural disasters. Dave is a director of BnB Sure, a specialist hospitality insurance company that offers customised insurance for B&B and Guesthouse accommodation. This is what he had to say:
All too often we hear “It’ll never happen to me” and when it does happen the comment is usually “I don’t know how it happened”. In some cases it is possible to lessen the chances, in others it is almost impossible to do anything about it and in many cases Mother Nature is involved.
Right now we are seeing the destruction being caused by “Hurricane Sandy” in the USA. The world’s weather patterns are changing and many South African properties have also been damaged by recent natural disasters. Take the recent floods in the Eastern Cape and a hailstorm in Gauteng where the hailstones were bigger than cricket balls!
What can we do to stop damage caused by these natural disasters? In reality – very little.
What we can do is to be certain that if damage does hit us that our insurances are correct and that they cover these events. Many accommodation establishments choose not to buy Business Interruption insurance, (also known as business income insurance) which covers the loss of income that a business suffers after a disaster. If a flood, such as those in the Eastern Cape, damaged your property without this type of cover it could mean the end of the business that you have worked for years to build.
What is the answer? Sit down with your insurance broker (and yes you do need one) and have them go through your policy in detail with you and never use the words “It’ll never happen to me”.
BnBSure is an insurance policy created by B&B and guesthouse owners for B&Bs and guesthouses – www.bnbsure.co.za