B&B owners warned of hazards of not insuring

2007-12-12 00:00

Many owners of B&Bs and guest houses currently run the risk of being hit by claims from guests for which they are not adequately covered. In some cases, establishments may not be covered at all.

Speaking to The Witness at a recent meeting of the Midlands B&B Association held in Pietermaritzburg, Dave Jack, managing director of B&B Sure, noted that the vast majority of B&Bs and guest houses in South Africa are not insured.

He said there are many misconceptions regarding the matter of insuring a B&B or guest house.

Jack explained that some business owners believe that it is not necessary and that insurance issues do not affect them as they run their establishment as a hobby. He stressed that the risks and exposures are the same for owners across the board.

“Some people also believe that they are okay if they have a certain amount of cover based on how many rooms they have. This is not true at all,” he explained.

Jack said a case pertaining to a chain operating in Namibia resulted in a settlement figure of R80 million, after the 40-year-old English visitor was in an accident involving a game vehicle, which resulted in him becoming a quadriplegic.

A further R10 million worth of legal costs were also incurred.

“This has put a value on that profile of person, that is, a foreign tourist, who is well-to-do and is a big money earner.”

However, he warned that such claims also relate to local visitors and guests, particularly high-earning professionals. He said securing adequate cover is of paramount importance.

When questioned on the amount of cover required, he answered: “As much as you can get”.


Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.