Insurance for Hospitality

Key risks

Common industry risks

Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.

The Risks

Risks Response

Glass Cover

Accidental breakage of shopfront or internal glass leaves your venue exposed and in need of urgent repair or temporary protection.

Glass Cover is a benefit commonly included under Business Pack Insurance. It may respond to accidental breakage of insured glass at your premises.

Machinery Breakdown

A key piece of machinery or equipment breaks down suddenly, disrupting food service and leaving you unable to serve customers.

Machinery Breakdown is a benefit under Business Pack or Commercial Property Insurance. It may respond to sudden breakdown of insured machinery.

Business Interruption

Insured damage forces your venue to close and revenue drops while repairs are completed and the business is reinstated.

Business Interruption Insurance may respond to lost income and additional costs arising from an insured event interrupting your operations.

Commercial Property

A fire or storm damages your kitchen, dining area or stock and interrupts your trading and business operations.

Commercial Property Insurance may respond to repair or replacement costs for insured premises, contents and stock damaged by an insured event.

Public Liability

A customer slips in a busy service area and makes a claim for injury and related losses at your venue.

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Glass Cover

The Risks

Accidental breakage of shopfront or internal glass leaves your venue exposed and in need of urgent repair or temporary protection.

Risks Response

Glass Cover is a benefit commonly included under Business Pack Insurance. It may respond to accidental breakage of insured glass at your premises.

Machinery Breakdown

The Risks

A key piece of machinery or equipment breaks down suddenly, disrupting food service and leaving you unable to serve customers.

Risks Response

Machinery Breakdown is a benefit under Business Pack or Commercial Property Insurance. It may respond to sudden breakdown of insured machinery.

Business Interruption

The Risks

Insured damage forces your venue to close and revenue drops while repairs are completed and the business is reinstated.

Risks Response

Business Interruption Insurance may respond to lost income and additional costs arising from an insured event interrupting your operations.

Commercial Property

The Risks

A fire or storm damages your kitchen, dining area or stock and interrupts your trading and business operations.

Risks Response

Commercial Property Insurance may respond to repair or replacement costs for insured premises, contents and stock damaged by an insured event.

Public Liability

The Risks

A customer slips in a busy service area and makes a claim for injury and related losses at your venue.

Risks Response

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

Claims examples

Common claims against Hospitality

Real-world examples of how insurance may respond to common hospitality risks

Loss of Income After Insured Damage

SCENARIO

Storm damage to cabins at a holiday park results in cancelled bookings during peak season.

WHY IT’S COVERED

Business Interruption Insurance may respond to lost income and additional costs arising from an insured event that interrupts your business operations.

Fire Damage Affecting Guest Rooms

SCENARIO

A small kitchen fire in a serviced apartment damages fittings and furniture, forcing several rooms to close temporarily. The property also operates food services for guests.

WHY IT’S COVERED

Commercial Property Insurance may respond to repair or replacement costs for insured premises and contents damaged by fire. Business Interruption Insurance may also respond to income losses and additional costs incurred during the period of closure.

Damage to Guest Property

SCENARIO

A cleaner accidentally damages a guest’s suitcase and contents while preparing the room for check-in.

WHY IT’S COVERED

Public Liability insurance may cover accidental damage to guest property while it is in your care.

Guest Injury on the Premises

SCENARIO

A guest slips on a wet bathroom floor in a hotel room and suffers an injury. They later make a claim for medical costs and related expenses.

WHY IT’S COVERED

Public Liability Insurance may respond to third party injury claims arising from your business premises and operations.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

Manual handling damage

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

IS THIS COVERED?

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

FAQs

Hospitality insurance queries

How do I make a claim?

You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.

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How do I make a claim?

What is a Certificate of Currency?

A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.

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What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Professional Indemnity insurance typically operates on a "claims made and notified" basis, meaning both the claim must be made against you AND you must notify the insurer during the active insurance period (or discovery period if applicable). Late notification after policy expiry may not be covered unless you have purchased an extended discovery period. Prompt notification is essential to protect your rights under your insurance.

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How quickly do I need to report an incident to my insurer?

What is a retroactive date?

A retroactive date is the earliest date from which a claim can arise and still be covered under your policy. Professional Indemnity and certain other claims-made policies will only respond to claims arising from acts, errors or omissions that occurred on or after the retroactive date listed in your policy schedule. If an incident occurred before your retroactive date, it typically will not be covered even if the claim is made during the current policy period. Maintaining continuous cover without gaps helps protect your retroactive date — check your policy schedule or ask your broker if you are unsure of your retroactive date.

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What is a retroactive date?

What factors might impact the cost of policy premiums of insurance for hospitality?

The cost of insurance for hospitality in Australia varies depending on several factors. These typically include the nature and scope of your business activities, annual turnover, number of employees, location, claims history, and the cover limits and the applicable excess. For Commercial Motor cover, insurers also consider vehicle make, model, value, usage and driving history. Where additional covers such as Professional Indemnity or Cyber insurance are relevant to your operations, the services you provide and the sensitivity of data you hold may also affect your premium. Because each business is different, costs can vary significantly and premiums may change at renewal in line with risk and claims experience.

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What factors might impact the cost of policy premiums of insurance for hospitality?

Do hospitality businesses need Public Liability insurance?

Public Liability insurance is designed to cover claims where a client or member of the public is injured or their property is damaged as a result of the services you provide. While it is not a legal requirement for hospitality businesses in Australia, it is commonly held by hospitality businesses across Australia. Many clients, venues and booking platforms may require you to hold a current Public Liability policy before they will engage your services. Without this type of cover, you could be personally liable for legal costs and compensation claims. Speaking with an insurance broker can help you understand whether Public Liability cover is appropriate for your circumstances.

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Do hospitality businesses need Public Liability insurance?

© 2026 upcover Pty Ltd ABN 17 628 197 437, Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. upcover arranges insurance products with selected insurers and underwriters. upcover does not compare all general insurers or insurance products available in the market.

The information contained on this website is general advice only and has been prepared without taking into account your individual needs, objectives and financial situation. It should not be relied upon as advice. All insurance products are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please consider your personal circumstances and read the relevant Product Disclosure Statement, Target Market Determination, Policy Wording, and Financial Services Guide.

Insurance for Hospitality

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Common industry risks

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

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Risks Response

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Risks Response

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Coverage for Hospitality

Common claims against Hospitality

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Hospitality insurance queries

How do I make a claim?

How do I make a claim?

What is a Certificate of Currency?

What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

How quickly do I need to report an incident to my insurer?

What is a retroactive date?

What is a retroactive date?

What factors might impact the cost of policy premiums of insurance for hospitality?

What factors might impact the cost of policy premiums of insurance for hospitality?

Do hospitality businesses need Public Liability insurance?

Do hospitality businesses need Public Liability insurance?

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