For instance, Pete Dillon, who operates Hotel Canberra in Ballarat, has seen his insurance expenses rise by approximately 20% over the past three and a half years. This increase translates to about $4,000 per month, or $48,000 annually, placing a considerable financial burden on his business.
Several factors contribute to these rising premiums, including inflation, increased claims due to natural disasters, and the overall risk profile associated with the hospitality sector. Restaurants and cafés are particularly vulnerable to risks such as property damage, liability claims, and business interruptions, all of which influence insurance costs.
To manage these escalating expenses, hospitality business owners are encouraged to:
- Regularly review and compare insurance policies to ensure they are receiving the best coverage at competitive rates.
- Implement comprehensive risk management strategies to minimize potential claims.
- Engage with insurance brokers who specialize in the hospitality industry to tailor coverage to their specific needs.
By proactively addressing these factors, restaurant and café owners can better navigate the challenges posed by rising insurance premiums and maintain the financial health of their businesses.
