Australia’s hospitality industry is one of the most significant drivers of the nation’s economy. Yet operating within the sector leaves business owners exposed to a number of risks.
In order to thrive in the hospitality industry, businesses need to take a risk-based approach to management. Effectively managing and minimising risks involves proactively undertaking on-site risk reduction initiatives, and backing them up with an appropriate insurance policy. Breeze Underwriting specialises in providing insurance solutions to cover hospitality risks.
We know how to best protect Australia’s Accommodation & Restaurant businesses, so our policies have certain requirements that policyholders must fulfil. In order to purchase an Accommodation or Restaurant package from Breeze Underwriting, a Risk Survey of your premises may be necessary.
When is a Risk Survey Required?
For Restaurant risks where sums insured are over $2 million a survey may be required before a quote can be confirmed. For other risks Your underwriter will confirm whether a survey is required at the time of quoting. If the survey is not completed before the policy is issued, it will be completed within the first policy period and then every 3-4 years thereafter.
Why are Risk Surveys Conducted?
Risk Surveys are conducted to benefit the policyholder by reducing their business risk. A risk engineer will look at specific risk data to identify problem areas in the premises where risk may be reduced.
The Risk Survey also provides an opportunity for the policyholder to speak with a qualified risk engineer about their business and to identify ways, specific to them, that can help reduce the number of incidents that occur.
Who Will Attend a Risk Survey?
The insurer will appoint a Risk Engineer/Surveyor as a representative to conduct the study. The policyholder (or their representative) should also be present so that they can discuss what the Surveyor is looking at and ask relevant questions as to how their findings may affect their business. The Insurance Broker of the policyholder are also welcome to attend and can be useful in asking more technical questions and gaining a more in-depth insight into the risk profile of the premises.
What Happens at the Risk Survey?
The Risk Survey will be conducted on the premises of the policyholder. Upon arrival, the Surveyor will introduce themselves and explain the process of the survey, highlighting the key risk areas that they will check and what this means for the policyholder.
The Surveyor will visit the specified areas of the premises, explaining what they are looking at in each area, and any recommendations that they have. The policyholder is encouraged to ask any questions, particularly if they are unsure as to what the recommendations mean for their business.
What Happens After the Risk Survey?
After your Risk Survey has been carried out, the surveyor will complete a report and detail any recommendations that they have based on what was discussed during the survey. These recommendations will then be passed on to the policyholder’s insurance broker, who will follow up with their client about what needs to be done and the time frames in which they need to be completed. Depending on the recommendations, the policyholder will have 60-90 days to have the recommendations completed
What Types of Recommendations am I Likely to Receive?
The most common risk recommendations and follow up actions to be undertaken are related to either legislative requirements or good general housekeeping, and are not expensive for the policyholder to implement. The most common recommendations include:
- To have the electrical wiring inspected/scanned as hot spots in wiring can cause fires. Identifying these and why they are occurring is a good hazard reduction practice.
- To ensure the Commercial Cooking Endorsement is being complied with, including the regular cleaning of the ducts and fuels in the kitchen and the regular servicing of fire appliances such as extinguishers and fire blankets.
- That exit lighting and exit plans are in place to assist in the event of an evacuation.
- That guttering is clean and free of debris.
- That trip and fall hazards such as pot holes in car parks and lighting and balustrades in stairwells are well maintained.
A Risk Survey is of great benefit to your business as it can significantly reduce the risks that you are exposed to. If you have more questions about Risk Survey Requirements, don’t hesitate to get in touch with the team at Breeze Underwriting.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.