Running a cafe requires a great deal of dedication. Youíre likely to put all your time and effort into getting your business up and running, so you donít want one mistake to compromise all your hard work. Cafe insurance can help to protect you and your business, so it is important you avoid these common mistakes.
Not Considering the Importance of Cafe or Restaurant Insurance
The biggest mistake you can make about your business is not considering the importance of proper cafe or restaurant insurance. You may have a false misconception that if your cafe is small, you donít require dedicated business insurance. However, this can be a very costly mistake. Not having proper insurance is an invitation for trouble as you will lack protection against any potential losses. Even if youíre running a tight budget for your startup operations, it is crucial to consider insurance to ensure that you have the best cover for your needs.
Allowing Insurance to Lapse
Most business owners can appreciate that some months are leaner than others. Many cafes have a booming trade during tourist season and struggle to break even at other times of the year. However, allowing your insurance to lapse during these leaner months is a big mistake. When your insurance lapses, it means that you will not be covered at all, if an accident should occur. If you fail to renew your policy, you could end up being stuck paying lawsuit damages out of your own pocket.
Choosing the Wrong Insurance
Many business owners tend to buy insurance through their home insurance company. After all, if a company can provide good home or car insurance, they should be able to help with cafe insurance, right? In fact, this "easy" option can actually make life more complicated. Insurers who specialise in home insurance, may not be able to recommend or provide the best business insurance. They are unlikely to have access to the entire product selection in the business insurance sector. This means that you could end up under insured or lacking vital cover. So, rather than trying to take the "easy" option, rely on a specialist insurance broker who can assess your risk profile and act on your behalf to ensure you are adequately protected.
Failing to Update Your Policy
Another common mistake among cafe owners is not informing insurance brokers about changes in business assets or activities. Failing to update your policies could create issues in the event of a claim, and you may find that you may only be able to get a partial claim paid if there is a problem. So, it is vital that any changes in your business are reflected in your policy. This will ensure that you can enjoy complete protection against any issues that may arise.
If you are interested in cafe insurance, you should speak to us. The GSK Insurance brokers perth team are available to answer any queries you may have and discuss your requirements to ensure that your business benefits from the best cafe or restaurant insurance.