There are many hospitality businesses in the GTA and staying ahead of your competitors can be a difficult task. Plus, when you add in other business factors like hospitality insurance, it can be hard to make a profit unless you cut costs in as many places as possible. However, cutting costs on insurance may not be the best risk management strategy for a hospitality business in the Greater Toronto area. In fact, without the right coverage you could be facing problems that result in financial nightmares. Let’s take the example of Naomi and Alan S.
Alan and Naomi worked very hard for a number of years and they shared a beautiful dream. If only they could run a quaint little bed and breakfast establishment, they would be very happy. Both Naomi and Alan were tired of working for others and taking orders from bosses. They really wanted a business of their own and a B&B was the perfect solution to this problem.
One day, Naomi received a letter informing her of an inheritance from her aunt (who recently died). She had no idea she would receive so much money and Naomi and Alan were very excited. They bought an older B&B that was in need of upgrades and improvements. The price on the property was very reasonable and they had money left over for upgrades.
Fred wanted to cut costs by getting the cheapest hospitality business insurance, but Naomi would have no part of it. It was her money and she wanted to make sure the B&B was fully insured against all hazards, so she went to an independent broker who was an expert in risk management. Fred was not happy with the decision, but Naomi would not budge on this matter. She obtained a comprehensive insurance policy customized for the B&B industry and their specific business needs. In addition, the insurance didn’t cost nowhere near what Fred had expected.
The B&B opened for business and was a huge success. This continued for almost a year until a tornado hit nearby. It caused significant damage to the B&B roof and they were without electricity for several days. It took several weeks to make the repairs and during this time, they missed out on a lot of summer business. However, since the couple had business interruption insurance, they were reimbursed for their losses.
