But before you start any business venture there are a number of questions you should be asking yourself. For example, where are my customers going to come from? How am I going to pay the bills while the business is starting up? Do I need council approval for this? Do I need any special licenses? How much will the insurance be? Is this even legal?
At Simplex insurance, we have a wide variety of insurers who already specialise in traditional Bed & Breakfast operations. The reason it’s important to have a Bed & Breakfast policy rather than a traditional Home Insurance policy is because you need both Public Liability to cover trips and falls, as well as Products Liability if you’re going to be supplying any food or beverages. You may also like to have cover for any damage caused by guests, which is a standard exclusion.
Even though getting the right insurance is easy enough, you may still find yourself in trouble with your local council if you don’t have the correct permits for operating a Bed & Breakfast from your home which could mean a fine, a request for a backdated permit or both.
While our insurance laws are quite generous in Australia, it’s vitally important that you comply with your Duty of Disclosure and tell your insurer about these business activities so they can confirm whether or not they will extend cover before something happens rather than when it’s too late.
So what seems like an easy way of making money is hopefully sounding very serious and very risky, which is what all business ventures are!
Here at Simplex we love supporting new businesses and helping them navigate their insurance requirements to make sure they’re protected as much as possible. If you’re considering starting any business venture please contact us to discuss what insurances you may need and the potential costs involved so you can make an informed decision.