The global hospitality industry is worth over 500 billion USD, and it is an industry that has thousands of players, from the biggest brands in the world like Hilton, Marriott and Hyatt, to the smallest family motels and guesthouses. In Canada alone this industry is worth nearly 20 billion CAD, and this seems to be on the increase, as more and more tourists are discovering Canada’s vast, beautiful, and diverse landscape.
This booming hospitality industry has seen an increased demand for hospitality and lodging insurance, which is considered an essential part of any modern accommodation.
The hospitality industry is diverse and covers a wide range of businesses, including:
• Travel and Tourism: This sector is huge and includes some of the industries mentioned below, generally referring to any business that caters predominantly for tourists. The bulk of Canada’s international tourism comes from the United States, followed by the United Kingdom, but domestic tourism is also big business.
• Lodging: This includes any business that offers guests a place to sleep. These businesses typically cater for tourists, but also offer accommodation for domestic travellers and professionals. The biggest companies here are the multinational hotel chains, but campgrounds, motels, and youth hostels are also included.
• Food and Drink: More than 70% of Canadians dine out at least twice a month, and many also order takeout on several occasions, spending in excess of $200 per month on average. These food and beverage purveyors are also part of the hospitality industry, and because they are responsible for feeding the nation (which requires the utmost cleanliness and care at all times) they are often the most exposed to liability claims.
The types of hospitality and lodging insurance are as diverse as the types of businesses that operate in this sector. Some of the cover that may be provided on a typical policy include:
• Property Damage: One of the most essential aspects of any hospitality and lodging insurance policy is property damage cover. This will pay out in the event that the building is damaged, regardless of whether the damage was the result of an accident or criminal activity.
• Content Loss and Damage: This pays out in the event of theft or loss, such as damaged or stolen electronics (televisions, phones)—just what you need if you have a rock star staying in your hotel.
• Interruption: If your business operation is interrupted as a result of something out of your control, the insurance may help to cover costs and ensure bills continue to be paid and money continues to come in even though the business is non-operational.
• Liability: This will provide financial (and occasionally legal) support in the event of a lawsuit brought against the business by a member of the public. Such is the case with personal injury lawsuits, which are commonplace in this industry throughout North America, but it can also include lawsuits filed by former employees, rival businesses, and more.
• Equipment Breakdown: If a key piece of equipment breaks down or malfunctions, the insurance company may be able to step in and cover the costs needed to get it back up and running.
A standard hospitality and lodging insurance policy will provide a huge range of cover, and a comprehensive one will go even further, providing assurances for most eventualities. If there is something in particular you require cover for that is not outlined in the policy, you can discuss your options with your broker and they should be able to assist you.
At KASE Insurance we provide a wealth of options for the hospitality and lodging industry, giving Canadian companies in this sector the assurances they need. We are a forward-thinking customer-centric company and have been recognized for our innovation and our customer service.
We work with a number of companies across Canada and can help businesses big and small, with a plethora of policy options to ensure every need is catered for. If you want to discuss a hospitality and lodging insurance policy then get in touch today and one of our insurance experts can talk you through the policy and help you to get the cover you need.
We also offer a number of other insurance plans, and cover large parts of Canada, with many of our clientele based in the city of Toronto.
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out of 5 stars
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5 out of 5 stars
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