November 23, 2021
As ongoing labour shortages continue to hamper certain sectors, COVID-19 pandemic economic effects are squeezing businesses already struggling to find workers. Businesses of all sizes say they are having difficulty finding workers, so employers are offering more incentives such as higher wages, bonuses, and flexible work schedules in an attempt to attract workers.
The hospitality industry has been among the hardest hit. From the second quarter of 2019 to the second quarter of 2021, Statistics Canada reports an increase of 11,600 job vacancies in the hospitality and food services industry, reaching an all-time high of 89,100. (1) StatCan reports that the increase occurred "exclusively" in the food services and drinking places sector.
Additionally, among all occupations in Canada over the past two years, food counter attendants, kitchen helpers, and related support occupations experienced the second-largest increase in vacancies.
Canadian Underwriter reports that many insurance companies no longer cover restaurants, which has compounded these challenges. The magazine has also been informed that some insurers are no longer covering hotels, motels, and bars/pubs/concert venues. (2)
When taking a client's risk out to market, a broker must understand how the pandemic has affected that client.
Assessing Exposures and Risks at a Restaurant
The busier the season gets, the more things can go wrong both on the floor and in the kitchen, from fires, power outages, and equipment breakdowns to customers getting sick, burned, or having allergies to the food they're served.
Slipping and Tripping Hazards
Restaurant/bar owners can be held liable for slips and falls at their venue. This includes slips and falls down the stairs, and even injuries on the dancefloor.
Holidays, Happy Hour, and Popular Dining Hours
During busy times, restaurants, bars, pubs and taverns are at higher risk. During these times, patrons are more likely to drink, and overcrowding and/or entrance obstruction are safety concerns.
Bars, pubs, and taverns can be held liable for over-serving alcohol if the establishment is alleged to have caused or contributed to an event where someone was injured. A licensed establishment has a legal responsibility to ensure that its patrons get home safely. The commercial host may be held responsible for a vehicle accident caused by patron intoxication.
Another risk to consider is that clients may drink at several restaurants in a single night in commercial districts, and may already be intoxicated when they arrive at the client's venue.
Owners of restaurants can be held accountable for the conduct of their employees if there is sufficient evidence that the assault took place within the scope of authorized duties.
Photographers, venue managers and staff, or anyone who distributes photos taken at an event might be liable for invasion of privacy.
About SWG HOST
SWG HOST Hospitality Services Insurance is a leading program designed to accommodate most classes of hospitality risks including restaurants, fine dining, pubs, bars, venues with live entertainment, billiards/pool halls, and motels/hotels not exceeding 35 room rentals. We can quote large TIVs and high liquor % receipts. Liquor Liability is acceptable up to $2,000,000 and in some cases up to $5,000,000. Standalone liability is available.
Full Commercial General Liability with Liquor Liability:
● Most classes of Hospitality risks
● Bodily injury and property damage
● Tenant’s legal liability up to $500K
● Non owned automobile – excluded if there is delivery service
● One application for all classes of the risk quoted.
Full property coverage on broad form available
Extensions of Coverage Include:
Personal Property of Officers and Employees
● Any one officer/employee
Any one occurrence
● Growing Plant, Trees, Shrubs or Flowers in the Open
● Accounts Receivabl
● Stock Spoilage/Consequential Loss
● Building By-Laws
● Inflation Protection
● Exhibition Coverage
● Automatic Fire Suppression System Recharge Expense
● Brands and Labels
● Fire Fighting Expenses
● Temporary Locations
● New Acquired Locations (30 Days)
Equipment and Stock (Contents)
● Debris Removal
● Peak Season Increase
● Land and Water Pollution Clean Up Expense
● Building Damage by Theft
● Extra Expense
● Valuable Papers
● Electronic Data Processing Equipment and Media
● Fine Art
● Professional Fees
Crime Coverage Includes:
● Employee Dishonesty
● Broad Form Money & Securities
● Credit card forgery
LEGAL EXPENSE (claims Made Basis)
Further Coverage Details:
● Liquor up to 90% depending on nature of Hospitality establishment
● Dance Floor up to 450 square feet depending on hospitality risk classification
● Fully updated buildings up to 125 years old and updated (within last 25 years and roof in last 15 years)
Who We Cover:
● Fine Dining
● Hospitality with Live Bands
● Hospitality with Patios
● Un-licenced Restaurants
● Billiard Pool Halls
● Hotel and Motel (<36 rooms)
● Venues with Live Entertainment
Visit our product page at https://swgins.com/product/swghost.html for more information.
Content is current as of the date of broadcast and is subject to change without notice.