Insurance and Risk Management for Tourist Accommodation

The risk of financial exposure for damages or injuries arising in the in the course of a business can occur in a variety of ways. This will focus on the main types of insurance cover that offer protection to a business by limiting such financial exposure.

Key Insurance Cover:

• Property Damage and Business Interruption
• Employers Liability
• Public Liability

An insurance policy is a contract between an insurer and the insured and the wording used to define the terms and conditions of the policy will dictate if an insurer is required to provide cover in the event of a claim being made. Therefore understanding the key elements and wording of insurance policies assist businesses understand the extent of cover available to them for the risks they might face.

Compulsory Insurance

There are certain classes of insurance that a business is required by law to have in place.

The main classes are:

• Employers Liability
• Third Party Motor Liability

There are other classes of insurance that a business might legally be required to have in place. For example it may be the term of a contract that a business has public liability cover.

Relationship between Insurance and Risk Management

An insurance provider will expect a business to understand and manage the risks associated with its operational activities. Failure to exercise reasonable care in managing such risks might influence an insurer’s decision to:

• Offer insurance at a particular price if at all
• Provide cover in the event of a claim
  
  

Risk Management – Key Issues

• Identify Hazards
• Evaluate Hazards – What are the underlying causes, what is the likelihood of an event occurring and what is the nature of the consequences?
• Develop and Introduce Risk Reduction Measures
• Prepare Written Risk Assessment

Risk Assessment – Key Issues - General

• You have a legal obligation to protect employees, customers and members of the public against harm.
• Preparing a written risk assessment will assist you in meeting your legal obligations. It is also a legal requirement if you have five or more employees although it is good practice for every business, regardless of size, to prepare and maintain a written risk assessment.
• Your risk assessment should be a living document in order that it can be reviewed and updated as circumstances dictate.
• Whilst it is of critical importance that your risk assessment addresses the risks associated with Covid-19 you must not ignore other risks associated with your business such as food safety, fire precautions and maintenance of appliances such as gas fires.
• Communicate the content of your risk assessment to employees and customers.

Risk Assessment – Key Issues – Operational

Ensure your risk assessment is relevant to your business and reflects current government legal requirements, government guidelines and any recommendations made by a trade body or business association with whom you are connected.

Think in terms of risks that are associated with:

• Your premises
• Your activities
• Your employees
• Your customers
• The public

Specifically how have your operational activities been modified to address the risks associated with Covid-19?

For example will any areas such as staircases be subjected to greater use and as a consequence require a more regular cleaning and inspection regime or have you introduced new cleaning products which require a Control of Substances Hazardous to Health assessment.

Risk Assessment Resources

• Covid-19 Guidane for Hotels
• NIHF and Hospitality Ulster guidance
• British Holiday & Home Parks Association guidance
• National Caravan Council
• Association of Scotland’s Self-Caterers 
• Professional Association of Self Caterers
• Short Term Accommodation Association