siliconindia | | February 201819As the industry is in a good position in recent past, there are a number of risks which are faced by these industries quite frequently. However, these risks can be well covered with the help of an insurance covering the sameof Information Technology, the most common one is the data theft. In hotels and guest houses, there are a number of guests who come and go. The specific hotel records all the personal details of each and every client of them. Say, there comes a breach in the cyber security and all the data are taken or being deleted. In this very case, the first thing which the hotel should do is; inform their clients about the incontinence caused. Then, all legal formalities and lawsuit will come. The whole process takes a lot of time and at the same time, a lot of funds. These losses can be well covered with the help of Insurance.· Guest Threats: It is true those guests are the main source of income for any hospitality management industry. Be it a hotel or a restaurant, without your guests you are nothing. However, these guests can turn into your one of the biggest threats. For an instance, few years back, there was a case where a chain of hotels was sued with around six million dollars. The reason behind this was in a hotel of this very chain, six guests died due to bacteria which were alleged to be found in the water they served. However, that same water does not affect any of the other clients and when the case was filed, the hotel was found guilty and sued with the said amount. Nevertheless, the full amount was covered by an insurance firm they were tied with. Thus, guests are one big threat and should be covered with good hospitality insurance.· Staff Threats: Just like the guests, staffs are also a part of some critical threats when it comes to a hospitality industry. In a group of hotels or restaurants, there are staffs working together and it is not possible to keep an eye for each one of them. Starting from stolen assets to creating issues, staffs can be a real threat. Moreover, with booming economy in this industry, the competition level is continuously increasing among the hoteliers. Thus, their staff often become a threat. In a word, staff are being manipulated to work for other hotels or restaurant. With great demand, one has to offer some great amenities to retain a staff for your restaurant or hotel. Thus, all the expenses which are incurred can be well covered with any hospitality management insurance.· Brand Name: This is one of the main threats for a well established brand in this industry. The reason behind this is once you gain a brand value for your business, it becomes very difficult to retain the same. Thus, in such a case, insurance can come handy with the legal issues and its expenses.· Assets & Liabilities: Apart from all the above threats, assets and liabilities should also be safeguarded while dealing in this industry. The main reason behind this is these chains of businesses deal with very costly assets. Some of these assets may be damaged due to some uncertain activities like Terrorism, Asset Breakdown, Thefts, burglary and many more uncertain things like these. Just like your assets, your liabilities should also be covered. Some of the main liabilities which should are generally covered by an Insurance are Employee compensation, third party liability and liabilities in regards to officers & directors.· Financials: As this industry deals with heavy financials including cash, insurance covering these is always a great idea. Some of the financials which are covered by insurance may include increased production cost, loss in business or profit minimization. · Employees: Similar to staff and guests, employees are also someone who can be a threat for your business if not properly insured. Cost incurred for their Health, accidents, fidelities including gratuities and all can be covered a proper hospitality management insurance.What is the percentage of the hospitality industry that opts for insurance?This is a pretty common question which is quite frequently asked by the hoteliers. While reverting the answer, one thing can be said is everyone should opt for an insurance when it comes to hospitality management. With some great assets to safeguard, it is always recommend going for a great one. Statistically, 100 percent of all big chains in this industry are more or less covered by insurance. However, there are few small businesses who might be thinking of getting one. It can be well concluded that Hospitality Management is a big industry which is still growing on a regular basis. Getting an insurance to safeguard some loss is what every businessman in this industry should look for.
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