Hospitality & Tourism Insurance Renewal
A structured procedure for reviewing, renewing, and managing the organisation insurance portfolio to ensure adequate coverage is maintained at competitive premiums.
Purpose
To ensure the organisation maintains appropriate insurance cover for all identified risks, renewals are processed before expiry, and premiums are competitive through regular market review.
Scope
Covers all insurance policies held by the organisation including public liability, professional indemnity, workers compensation, property, motor vehicle, and management liability. Includes the annual renewal cycle and mid-term adjustments.
Prerequisites
- Insurance register listing all current policies, coverage amounts, premiums, and renewal dates
- Access to policy documents and certificates of currency
- Claims history for the current and prior periods
- Updated asset register, revenue figures, and staff member headcount for renewal declarations
Includes food safety compliance (HACCP), RSA requirements, liquor licensing documentation, and tourism accreditation record keeping.
Step-by-Step Procedure
Review the Insurance Register
Review the insurance register 60 days before the renewal date to confirm all policies, coverage details, and any changes to the business that may affect coverage requirements.
- 1.1Pull the insurance register and identify all policies approaching renewal
- 1.2Review each policy for coverage type, sum insured, excess, and premium
- 1.3Identify any changes to the business that may affect coverage needs (new assets, activities, locations)
- 1.4Note any claims lodged during the current policy period
Prepare Renewal Declarations
Gather the information required for renewal declarations including updated revenue, asset values, staff member numbers, and any material changes to business operations.
- 2.1Update revenue figures for the declaration period
- 2.2Update the asset register and confirm insurable asset values
- 2.3Confirm current staff member headcount and contractor numbers
- 2.4Document any new business activities, locations, or significant contracts
Engage with the Insurance Broker
Brief the insurance broker on any changes and request renewal quotes, including competitive market quotes where appropriate.
- 3.1Provide the broker with updated declarations and claims history
- 3.2Discuss any changes to coverage requirements or risk profile
- 3.3Request renewal quotes from the existing insurer and at least one alternative
- 3.4Set a deadline for receipt of quotes at least 14 days before the renewal date
Evaluate Renewal Quotes
Compare renewal quotes on coverage, exclusions, excess levels, premium, and insurer financial strength, and prepare a recommendation.
- 4.1Prepare a comparison table of all quotes received
- 4.2Compare coverage terms, sub-limits, and exclusions — not just premium
- 4.3Review excess levels and any changes from the current policy
- 4.4Prepare a recommendation for the preferred option with rationale
- The cheapest premium is not always the best option — review coverage quality and insurer reputation
Obtain Approval and Bind Coverage
Present the renewal recommendation to the appropriate authority for approval and instruct the broker to bind coverage before the expiry date.
- 5.1Present the quote comparison and recommendation to the approving authority
- 5.2Obtain written approval for the recommended option
- 5.3Instruct the broker to bind coverage with the selected insurer
- 5.4Confirm the effective date and that there is no gap in coverage
Receive and Review Policy Documents
Obtain the new policy documents and certificates of currency, review them for accuracy, and distribute to relevant stakeholders.
- 6.1Receive the renewed policy documents and certificates of currency from the broker
- 6.2Review the policy schedule to confirm coverage, sums insured, and excess are as agreed
- 6.3Distribute certificates of currency to guests, landlords, or other parties as required
- 6.4Report any discrepancies to the broker for correction
Update Records and Arrange Payment
Update the insurance register, arrange premium payment, and file all documents for future reference.
- 7.1Update the insurance register with the new policy details, premium, and renewal date
- 7.2Process the premium payment or set up the instalment arrangement
- 7.3Post the insurance expense and prepayment to the general ledger
- 7.4File all policy documents, quotes, and correspondence in the insurance folder
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
All insurance policies are renewed at least five business days before the expiry date.
Competitive market review is conducted annually, and premium increases are limited to market-rate adjustments.
All identified risks are covered by appropriate insurance policies with adequate sums insured.
Frequently Asked Questions
Do we need to go to market for every renewal?
While not every renewal requires a full market tender, it is good practice to obtain at least one alternative quote annually to ensure premiums and coverage remain competitive. A full market review every three years is recommended.
What happens if we miss a renewal date?
If a policy lapses, the organisation is uninsured for the relevant risk, which could have significant financial consequences. Contact the broker immediately to arrange emergency cover and investigate how the lapse occurred.
How are insurance premiums accounted for?
Annual insurance premiums are typically recognised as a prepaid expense and amortised monthly over the policy period. The stamp duty component is expensed at the time of payment.
How far in advance should the renewal process start?
The renewal process should commence at least 60 days before the policy expiry date to allow adequate time for declarations, broker engagement, quote comparison, and approval.
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