Seasonal experiences raise liability risks for hospitality businesses

Johannesburg - Many local businesses experience periods of increased foot traffic as families look for cosy weekend getaways, dining experiences and seasonal leisure activities in the colder months.  However, for restaurants and entertainment venues, more feet in the door can also mean more exposure to liability risks, especially in wetter weather conditions.

This is according to Mashelane Mabitsela, Senior Underwriter: Liability, Construction and Single Projects at Santam, who says hospitality business owners may want to review their public liability cover before they get caught off-guard. “Hospitality businesses are, by nature, public-facing and high-traffic environments. This means the risk of third-party claims is not only constant but can increase significantly during busy periods.

“Colder months often drive more indoor activity, with venues becoming busier and more crowded. This can create more accident-prone conditions,” Mashelane adds.

While local hospitality businesses focus on delivering a great customer experience during busier periods, she says it’s just as important to consider what happens when something goes wrong. “From slippery floors to equipment-related incidents, even routine operations can quickly escalate into costly claims. This is where public liability insurance comes in, to protect businesses against claims arising from injury, loss or damage suffered by third parties on their premises.”

Many businesses rely on disclaimers or indemnity notices as a first line of defence against such incidents. However, Mashelane cautions that these are often misunderstood. “A disclaimer is not a blanket safeguard against liability. For it to be enforceable, it must be clearly visible to customers, written in plain and understandable language, and aligned with applicable legislation, including consumer protection laws.”

She adds that simply displaying a disclaimer is not enough if customers are not given a fair opportunity to take note of it before entering the premises or engaging in an activity. “If a disclaimer is hidden, poorly worded, or overly broad, it may not stand up in the event of a claim. Businesses also cannot use disclaimers to avoid responsibility for gross negligence or unsafe conditions on their premises.”

Importantly, disclaimers do not remove a business’s duty of care. “Even with a disclaimer in place, owners are still responsible for maintaining a safe environment for customers. This includes addressing hazards promptly, implementing safety protocols, and ensuring staff are trained to manage risks effectively,” says Mashelane.

“Disclaimers are just one layer of protection in a broader risk management approach,” she adds. “Businesses should also consider operational safeguards such as surveillance and staff preparedness.”

Security cameras can play an important role in providing clear records of incidents should a claim arise. They not only act as a deterrent but also help establish exactly what occurred, including whether there was any negligence or fault on the part of staff. At the same time, staff should be equipped to handle difficult situations, from managing customer complaints to de-escalating conflicts.

“Having clear procedures for handling issues and equipping your team to handle them can reduce the potential for legal action,” Mashelane says. “Every staff member, from front of house to groundskeepers, must be comfortable stepping in where needed.”

Last but certainly not least, Mashelane says the right level of public liability insurance is critical to ensure that businesses are protected financially in the event of a claim. “The appropriate level of cover will depend on factors such as the size of the business, the number of customers served, and the nature of the activities offered. This is why it’s important to work with an insurer who understands the specific risks within the hospitality sector.”

Mashelane encourages all business owners to review their risk profile, assess whether their current insurance is sufficient, and take steps now to protect their business. “When it comes to liability insurance, don’t wait for an incident to highlight gaps in your cover,” Mashelane concludes. “Make sure you’re fully informed and cover now.”