What is the point of BA insurance for a hospitality professional?

When a guest suffers damage while staying in or visiting your catering establishment, someone will be held liable. This could be an employee of your hotel, restaurant or café. Yet, as a hospitality operator, you bear responsibility for your staff, both permanent and temporary. Therefore, it is wise to take out civil and professional liability insurance against possible claims for damages, even though this is not a legal requirement.

The waiter in your restaurant drops a bottle of wine on your guest's leather computer bag. The receptionist in your hotel made a double booking and has no free room available when your guest arrives. A hotel visitor has lost one of her most expensive pieces of jewellery after an overnight stay. These are particularly unpleasant situations that lead to a lot of dissatisfaction among your guests and can dent your reputation. More so, the person involved may take steps to be compensated for the damage suffered. So as a hotel or restaurant owner, are you responsible for this and should you compensate the person in question? The short answer is yes: as an employer, you are, in most cases, liable for accidents or mistakes that happen during work. And this for all employees you employ, including temporary or external staff. 

As soon as a conduct deviates from the principle of prudent and reasonable person under the Civil Code, a form of extra-contractual liability arises. "In these situations, any damage must be compensated. For this, any damage that the victim can prove qualifies," explains insurance lecturer Luc Devlamynck of DVL Education. "In the contractual sphere, you can limit liability in terms of time and/or amount. For example, consider a building contract that states that damages are limited to a maximum of ten times the amount of the invoice and that the contractor's liability is limited to claims that happen in the first six months. If there is no signed agreement between the parties involved, you cannot impose liability limitations. Moreover, any damage not included as a limitation in the contract must be compensated in full." 

Using a disclaimer, such as posting a sign at a cloakroom that the restaurant is not responsible in case of loss, does not protect you as an operator or owner. "A disclaimer can never be assumed. Moreover, with a disclaimer, it must be very clear to the consumer what rights he is waiving. Otherwise, such a sign is worthless. Compare it to a playground where it says 'enter at your own risk'. As long as nobody makes you sign a paper for entering it, that sign has no legal value. So proper insurance is a must, even if it is not a legal requirement for the hospitality industry." 

There may be confusion over the name BA insurance. This is because it refers to both professional liability insurance and civil liability insurance. Yet they are different. Professional liability insurance covers your business against making professional mistakes, where civil liability insurance protects you and your employees while practising the profession.

To best cover yourself against possible claims, you need to describe the activities you carry out in great detail and correctly. Find out exactly how many employees you employ and go over any accidents or mistakes that might occur. Devlamynck: "A hotel with or without a swimming pool carries different risks. A café where you can have a drink versus a bistro where you can also eat something are not the same. For example, food poisoning can occur in the latter." 

A full, correct description means that your insurance is well matched to what you do, so you don't overpay. Finally, you need to think carefully about activities done by external or temporary employees. "The cleaning crew drives around with a trolley, the gardener handles specific tools, ... All these tasks carry certain risks for your guests and other staff. Discuss with your insurer how all this will be charged. That way you avoid unpleasant surprises and guarantee proper service to your customers."