Why do Hotels and Restaurants Need Insurance?

Insurance is important for any type of business to protect the business from all possible losses. Even the restaurants and hotels also require insurance for their business. They can also need some type of business insurance to protect their business against losses. Here are few points that outlines the need of the insurance for hotels and restaurants.

  1. Every hotel and restaurant needs the building insurance for their commercial building, if it is their own building. There are many possibilities that a building can get damaged. They may be due to, earthquake, floods and vehicle accidents. To protect the business from the building damage losses, the business needs to take building insurance.
  2. To protect your hotel or restaurant property from fire and other accidents, you need to take the property insurance. The property insurance provides the benefits to the property loss, due to fire, theft and other events.
  3. To protect your customer’s health and life from some unfortunate events, such as fall down in your restaurant or get sick due to the food in your restaurant. To give some security for your customers and for your business, you need public liability insurance. Public liability insurance provides the benefits for your customer, if they get sick by falling in restaurant or get ill after eating food in your restaurant.
  4. Liquor liability is required in most of the countries to the business who sell liquor. It helps to protect you if your customers have drunk too much and hurts themselves or someone else. It helps restaurants to stay protected from above type of problems.
  5. Workers compensation: Most of the countries require that all employers to carry some type of workers compensation insurance. It protects you if some employee is hurt at work.

Due to all the above reasons, hotels and restaurants need insurance coverages.