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HOSPITALITY PACKAGE INSURANCE

ABOUT

A hospitality package insurance policy covers businesses in the hospitality sector, like restaurants and hotels. The policy provides a comprehensive scope of coverage to such businesses. The policy covers both natural and man-made perils and compensates the business for the financial loss suffered due to such perils.

The policy comes with a customizable coverage. There are many coverages available and you can choose based on your needs. The policy, therefore, is suitable for all types of hospitality establishments and should be taken for covering possible losses.

HOSPITALITY PACKAGE INSURANCE

BENEFITS

COVERAGE FOR FIRE AND ALLIED PERILS

The building and contents of a business suffer major threat from fire and allied perils. That is why the primary coverage under the policy is offered against fire and special perils. The perils which are covered under this category include fire, riots, strikes or malicious damages, lightning, explosion or implosion, storm, cyclones, typhoons, floods, inundation, aircraft damage, impact damage, missile testing operations, bursting of water pipes or tanks, bush fire and leakage from automatic sprinklers installed in the premises.

EARTHQUAKE COVER

Coverage for earthquake related damages can be inbuilt under many plans and under some plans the coverage is offered as an optional extension. If your business is located in an area which is prone to earthquakes, this coverage proves beneficial in compensating you for the loss suffered due to such earthquakes.

COVERAGE AGAINST BURGLARY

The policy also covers the loss of contents due to burglary and/or theft. In case of burglaries, the cost of replacing the lost contents subject to depreciation is paid by the policy.

PUBLIC LIABILITY COVER

Another threat which hospitality businesses face is the threat of public liability. If, due to their activities, any third party is physically injured, hurt or killed or if any third-party property is damaged, the business is held responsible for such loss. The business is then supposed to compensate the injured third party for the losses caused. This might cause a considerable financial loss for the business and as such the hospitality package insurance policy allows coverage for public liability as a policy extension. The coverage can be chosen to protect the business from public liabilities as and when they occur.

BUSINESS INTERRUPTION COVER

Business interruption cover is available with the hospitality package insurance policy as an optional add-on. It covers the loss of profit suffered by the business if its continuity is impacted due to a peril that is covered under the policy and for which a claim has been made

OPTIONAL EXTENSIONS

Since the need of different businesses is different, the hospitality package insurance policy provides a range of optional extensions which allow you to customize the coverage for your establishment. Some of the common extensions which are available include the following –

  • Money insurance
  • Plate glass
  • Neon sign
  • Machinery breakdown
  • Electronic equipment covers
  • Fidelity insurance
  • Baggage insurance
  • Workmen’s compensation cover
  • Personal accident cover

You can choose one or more of the available extensions at an additional premium and make the policy comprehensive in nature.

CUSTOMISABLE BY ADDING AOG PERILS

AOG perils mean “Act Of God” perils and include lightning, flood, inundation, storm, tempest, hurricane, typhoon, tsunami and earthquakes among others. You can customize the hospitality package insurance policy by including these perils in the scope of coverage so that you get an all-inclusive coverage against possible perils.

FOOD AND BEVERAGE EXTENSION

This extension provides financial protection to the business if the food and beverages served by the business cause third party liabilities. If any third party suffers food poisoning or any other injury or loss due to the food and beverage served by the establishment, the establishment might be held financially responsible for the loss caused. This financial liability of the establishment is covered under this extension wherein the policy compensates the third party for the loss suffered up to a specified limit.

VALUABLES UNDER CARE EXTENSION

If the valuables of customers/guests, stored with the establishment are lost or damaged, the establishment might suffer a financial liability for such loss or damage. The valuable under care extension covers this financial liability and compensates the loss suffered by the guests or customers up to a specified extent.

EXTRA FACILITY ADD-ON

This add-on is relevant if the establishment provides extra facilities to its guests and customers like valet parking, swimming pools, health clubs, spa, gymnasium, life, escalator and others. In such cases, if the customers or guests suffer any type of bodily injury, loss or property damage when using the facilities, the establishment becomes financially liable for the same. The add-on covers this financial liability and compensates the guests for the loss suffered by them. A hospitality package insurance policy, therefore, is an important coverage for the available inbuilt as well as optional coverage benefits. These benefits make the policy comprehensive in nature and protect the business from possible financial losses due to unforeseen contingencies.

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