RSA warns hospitality industry to protect themselves

Current economic conditions are forcing people to re-evaluate their spending patterns and seek cheaper alternatives to their regular leisure activities. RSA predicts that this will result in changes such as consumers drinking at home more often instead of visiting pubs or bars, that there will be a shift in popularity from mid-range hotels to the cheaper chain accommodation, and theme parks and leisure attractions may suffer from the financial squeeze unless their entrance fees are reduced or they offer aggressive promotions. In response to these changes, businesses may consider adapting their offering or facilities such as adding new rides, improving the look of their restaurant or hotel, or restructuring their staff. It is vital that they fully update their insurer of any changes or additions they make to secure appropriate cover. In addition, they must also make sure they have adequate business interruption cover in case damage or accidents occur which result in the businesses' facilities being put out of use. Abandonment and cancellation cover will also be vital to a number of companies holding promotional events. Bruce Hanwell, property & packages lead underwriter of RSA, said: "Whilst some businesses may be tempted to strip down their cover, we are urging the industry to ensure that they are fully protected in light of the economic climate. "Whilst taking advantage of people who will be saving money by holidaying in the UK, rather than travelling abroad, companies within the hospitality and leisure industry will try to find different ways of attracting customers and it is important that they realise there may be new risks associated with this. They should therefore speak to their insurance broker to determine if additional protection is required."