By Karim Chandani

In 2019, 22.1 million overnight travellers visited Canada. This was the third year in a row that a record-breaking number of visitors made it to the Great White North, and the hospitality industry was looking forward to another strong year in 2020.

Then came Coronavirus, along with widespread restaurant closures and a travel ban that has emptied hotel chains across the country. It’s clear that “business as usual” won’t get most organizations through the pandemic; so much of the industry is taking steps outside their comfort zone.

Whether it’s a restaurant offering grocery options along with regular take-out orders or a hotel housing exhausted doctors and nurses who need to stay away from at-risk family members, businesses have no choice but to pivot to stay relevant – and stay in business. There’s just one thing: If you’re offering new services, you’ll need to review your insurance policies to make sure you’re covered appropriately.

Restaurant or bar owners:

  • If you are launching delivery options you have never offered before, make sure your drivers – and their cars – have appropriate coverage. The right policy may vary depending on how you pay your drivers and whether you own the vehicles, but it’s irresponsible to just throw some food in a car and hope for the best.
  • If your establishment has closed completely, you may be paying big money for a liability policy to cover your liquor sales. But a closed storefront may require different policies to protect you during the shutdown.

Hotel owners:

  • If your hotel has been turned into a hospital, you’ll have a different series of risks to consider. The good news is, a government insurance policy for hospitals may be extended to cover your property in this case. This shifts the burden of liability from your hotel to the health authorities using it.
  • If your hotel has closed completely, you’ll need to check the vacancy clauses and related issues in your existing policies to ensure your coverage is still adequate. And during the closure, you’ll want to keep at least one maintenance person on site to provide minimal oversight on the building.

In any of these cases and others, your broker can be an invaluable partner in helping you assess the risks associated with your new ventures. A thorough review of your insurance program will reveal which policies are no longer needed and where new policies should be introduced. All of these steps can help you mitigate your risks – and help your business not only survive, but thrive.

Contact HUB Risk Services to learn how to develop a plan that will help you protect your business and employees from the unexpected. Get the latest information, guidance and resources on Coronavirus (COVID-19) to help you protect what matters most on our Coronavirus Resources Centre.