Insurance premiums don’t remain static forever. Like most industries, the insurance market moves over time as risks change, claims occur, and insurers adjust how they assess and price coverage.
Recently, media coverage has highlighted that some hospitality and tourism operators have experienced increases in their insurance premiums. A report from The Courier-Mail discussed Queensland tourism businesses facing higher insurance costs, particularly in regions exposed to natural catastrophe risks such as cyclones and flooding.
While this doesn’t reflect the experience of every business, it does highlight why periodically reviewing hospitality insurance can be valuable for accommodation providers, venues and hospitality operators.
If your business has seen changes in premiums — or simply hasn’t reviewed its insurance in some time — it may be worth checking that your coverage still aligns with your operations and risk profile.
Why Hospitality Insurance Premiums Can Change
Insurance pricing is influenced by a range of factors. For hospitality and accommodation businesses, premiums may move over time as insurers reassess risk and market conditions evolve.
Understanding these factors can help explain why premiums occasionally change.
Exposure to Natural Catastrophes
In Australia, insurers pay close attention to natural catastrophe exposure when underwriting hospitality insurance policies.
Risks such as:
- Cyclones
- Flooding
- Bushfires
- Severe storms
can influence how insurers price policies for properties in certain locations.
This doesn’t necessarily mean a claim has occurred. Instead, insurers regularly reassess risk exposure based on updated modelling and historical loss data, which can influence premiums for businesses located in higher-risk areas.
Claims Experience
Claims history is another factor insurers consider when assessing premiums.
If a property or business has experienced recent claims, insurers may adjust pricing to reflect the increased risk profile. Claims relating to property damage, public liability incidents or business interruption can all influence underwriting decisions.
In some cases, broader industry or regional claims trends can also affect how insurers approach certain sectors, including hospitality and accommodation.
Movement in the Insurance Market
Like many financial sectors, the insurance market operates in cycles.
At certain times insurers may tighten underwriting requirements or increase pricing as they respond to higher claims activity, rising rebuilding costs or increased catastrophe exposure. At other times the market becomes more competitive and pricing stabilises or improves.
For businesses that haven’t recently approached multiple insurers, these market movements can present an opportunity to review options and ensure their hospitality insurance remains competitive and appropriate.
Why a Policy Review Can Be Valuable
If you’ve noticed a change in premiums — or simply haven’t reviewed your coverage in a while — it can be helpful to reassess your insurance.
A review doesn’t necessarily mean changing insurers. Often it simply confirms that your current hospitality insurance still reflects the realities of your business.
Areas commonly considered during a review include:
Property values and replacement costs
Construction and repair costs can change over time, which may affect the insured value of buildings, equipment and venue fit-outs.
Business interruption cover
Hospitality businesses often rely on steady operations. Ensuring the indemnity period and coverage limits remain appropriate can help protect revenue if operations are disrupted.
Liability exposures
Hospitality venues interact with customers and guests every day, making public liability protection an important component of any hospitality insurance program.
Insurer options
A review can explore whether alternative insurers or policy structures may provide better value or more suitable coverage.
The Value of Working With a Broker Who Understands Hospitality
Hospitality and accommodation businesses operate with unique risks. From commercial kitchens and liquor service to guest accommodation and public-facing environments, the operational profile differs significantly from many other industries.
Working with a broker who understands the sector can make a meaningful difference when arranging hospitality insurance.
An experienced broker can help:
- Clearly present your business to insurers
- Identify policy structures suited to hospitality operations
- Compare options across multiple insurers
- Ensure coverage reflects the risks specific to accommodation and hospitality venues
Rather than navigating the insurance market alone, businesses benefit from having an advisor who understands both the insurance landscape and the operational realities of the hospitality sector.
A Changing Market Doesn’t Always Mean a Problem
It’s important to remember that changes in insurance pricing don’t always indicate an issue with your policy or business.
Often they simply reflect broader market conditions or evolving risk assessments by insurers.
However, when premiums change or policies approach renewal, it can be a useful opportunity to ask an important question:
Does this coverage still make sense for the business today?
Taking the time to review your hospitality insurance can provide reassurance that your protection remains aligned with your operations, assets and risk exposure.
Reviewing Your Hospitality Insurance
If your hospitality or accommodation business has noticed changes in premiums — or if you simply want confidence that your policy remains appropriate — a professional review can provide valuable clarity.
Barrack works with hospitality and accommodation operators to review hospitality insurance policies, explore insurer options and ensure coverage aligns with the realities of the sector.
Sometimes the outcome confirms that your current policy is still the right fit. In other cases, there may be opportunities to improve coverage or approach the market differently.
Either way, a review helps ensure your insurance continues to support your business as market conditions evolve.
If it’s been a while since your last review — or you simply want confidence that your coverage still makes sense — speak with the Barrack team today about reviewing your hospitality insurance.
