Hospitality

Running a hotel, motel, restaurant, or event venue in Australia can be rewarding, but it also comes with serious risks. Whether it’s property damage, guest injuries, or unexpected business closures, one incident can disrupt operations and significantly impact your bottom line. At Global Insurance Solutions, we’ve worked with hospitality businesses across Australia — from boutique hotels to bustling motels and event venues. One common truth we’ve seen is this: having the right hospitality insurance isn’t just important, it’s essential. In this article, we’ll explore the top risks facing the hospitality industry in Australia and explain how insurance cover can protect your business against financial, legal, and reputational damage. 1. Property Damage and Natural Disasters For hospitality businesses, the physical premises are at the heart of operations. Hotels, restaurants, motels, and event spaces all depend on functional buildings, commercial kitchens, and guest areas. Risks include: Insurance Protection: For example, if a severe storm damages your hotel roof, property insurance funds the repairs, while business interruption cover ensures you can still pay staff and bills during closure. 2. Workplace Health and Safety Risks The hospitality industry employs a large, often casual, workforce. Staff may be carrying heavy trays, working long shifts, or handling hot equipment in kitchens. Risks include: Insurance Protection: Failing to safeguard staff isn’t just a legal issue—it can also cause reputational damage. Having the right cover gives both employers and employees peace of mind. 3. Guest Injuries and Liability Claims Guests expect a safe and enjoyable experience — but accidents happen. A customer slipping on a wet floor or being injured by faulty equipment could easily lead to expensive liability claims. Risks include: Insurance Protection: Without liability cover, the cost of defending even a minor claim could put smaller hospitality businesses at serious financial risk. 4. Cyber Security and Data Breaches Many hospitality businesses now rely heavily on digital systems for bookings, payments, and guest data collection. Unfortunately, this makes them a target for cybercriminals. Risks include: Insurance Protection: In a world where guest trust is everything, a cyber-attack can destroy confidence in your business. Having cyber insurance ensures you can respond quickly and minimise damage. Explore: Cyber Risk Insurance | Cyber Incident Response Plan 5. Event Cancellation and Business Interruption For event venues and hotels hosting functions, cancellations are a major concern. A sudden lockdown, extreme weather event, or even supplier failure can derail carefully planned events. Risks include: Insurance Protection: The COVID-19 pandemic highlighted how essential business interruption and event-specific insurance policies are for the hospitality sector. 6. Underinsurance Risk in Hospitality One of the biggest issues we see as brokers is businesses undervaluing their property or stock, leaving them exposed in the event of a claim. Rising property values and inflation mean your sum insured may already be outdated. Insurance Protection: Regular reviews of your hospitality insurance policy — including property values, stock levels, and revenue figures — protect against underinsurance. At Global Insurance Solutions, we regularly review cover with our hospitality clients to ensure their insurance reflects the true replacement costs. Why Partner with a Specialist Insurance Broker? Every hospitality business is different. A boutique guesthouse faces different risks than a large event venue or busy motel. Choosing an experienced insurance broker ensures your business is protected by tailored cover — not one-size-fits-all policies. At Global Insurance Solutions, we: Final Thoughts The hospitality industry is vibrant, but it’s also exposed to risks that can disrupt operations sometimes overnight. The right insurance doesn’t just cover the cost of disasters; it keeps your business running, your staff supported, and your reputation intact. If you run a hotel, motel, restaurant, or event venue in Australia, now is the time to review your insurance cover. Don’t wait for a crisis before finding out you’re underinsured. Speak to Global Insurance Solutions today for a FREE hospitality insurance review. Our team will ensure your business has the right protection for tomorrow not just today. FAQs on Insurance For the Hospitality Industry 1. What type of insurance do hotels in Australia need? Hotels typically need property insurance, public liability insurance, business interruption insurance, cyber cover, and workers’ compensation. The right mix depends on the size and services of the hotel. 2. Do motels need different insurance than hotels? Generally, motels require similar coverage to hotels (property, liability, workers’ compensation, business interruption). However, policies can be tailored depending on whether they provide food and beverage services or host events. 3. Is public liability insurance mandatory for hospitality businesses? While not legally mandatory across all states, most councils, landlords, and event contracts require it. It’s considered essential for safeguarding against guest injury claims. 4. What is event insurance, and who needs it? Event insurance protects against losses from cancellations, postponements, or disruptions. Venues, event organisers, and even hotels hosting conferences or weddings benefit from this cover. 5. How often should hospitality insurance be reviewed? We recommend reviewing policies annually or whenever there are significant business changes, such as renovations, expansion, or increased revenue. Important notice This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers. This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product. Information