The years since the pandemic have been some of the toughest on record for insurance markets, particularly in hospitality, and rising economic pressures have forced greater attention on managing the cost of insurance.
GSA’s Charles Galayini says providers are responding to operators with a greater focus on ongoing operational exposures, which provides an opportunity for diligent businesses to demonstrate their commitment to risk management.
“Fortunately, we are seeing a fundamental shift in Insurer appetite for high quality, well-protected venues, run by publicans with a strong risk management focus,” says Galayini.
“This is providing a welcome light in stabilising and even reducing the cost of Property and Public Liability insurance.”
GSA recommends a ‘walkaround’ of premises, focussed on the daily operations and activities of the property. The goal is to identify activities or practices that could impact the business, including financial, operational, technology, reputation, health & safety and morale, and fix them immediately, where possible.
Examples of walkaround discussion points include: daily work activities, age of equipment, serviceability and maintenance of equipment, upgrade programs, safety practices, parking, and evacuation plans and procedures.
Regular checks should identify:
- Issues that need to be actioned as part of the repair and maintenance program
- Activities that could be modified or changed to improve effectiveness
- Maintenance and/or upgrade works that could impact operations and/or the experience of the customer
There are a number of benefits in the practice, both tangible and intangible.
“From a business perspective, you are creating a lower risk environment for customers and employees, meaning less risk of an accident. Minimising claims (Workers Compensation, Public Liability etc) then has a direct financial impact with lower insurance premiums.”
GSA Insurance Brokers help pubs manage the cover and cost of insurance for publicans through access to a broader number of insurers and mutuals, knowledge of the industry, and ensuring publicans aren’t buying policies that will never pay.
“While formal independent risk management strategies such as Risk Surveys, Business Interruption analysis and Replacement Valuations are still key to getting the best results, there are simple and effective ‘self-assessment / self-management’ approaches that can be taken and are proving extremely beneficial,” adds Galayini.
Download GSA’s self-assessment Operational Walkaround Checklist.
