Hospitality and leisure

The importance of the South African tourism industry, particularly its capacity to grow South Africa's GDP is vital. It continues to show a steady growth and the government is still committed to increasing tourism’s contribution to the economy from the 2009 baseline of R189, 4 billion to R499 billion by 2020.

In spite of challenges, including the change in visa regulations in South Africa, the sector has significant potential to uplift inclusive economic growth across the continent. Hospitality & Leisure (H&L) offers customised solutions for the hospitality and leisure industry which include a comprehensive range of adaptable solutions that are able to meet the demands of the ever-changing hospitality industry.


  • B&B’s
  • Hotels
  • Game farms
  • Golf estates and clubs
  • Restaurants, including franchises
  • Resorts
  • Lodges
  • Guesthouses


As a specialist risk solutions provider for the South African hospitality and leisure industry, our defined range of products caters for everything from the smallest to the largest and most unforeseen risks, covering all aspects of the hospitality sector.

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The H&L product range

H&L understands the risk associated with the tourism industry and we tailor-make our products to suit the specific needs of our clients. We know the integral role hospitality and leisure plays in the South African economy and our products cater for everything from the smallest to the largest risks, covering all aspects of the hospitality sector.

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How the climate impacts on the industry

The continuing drought has had a major impact on the food services industry and that has transferred onto our clients with sharp increases in the prices of food. In the latest CPI figures inflation was at 6.3%; however food inflation was around the 11% mark and this trend is set to continue into 2017.

With the low rainfall levels and the warmer climate we are currently seeing the end of the El Nino weather pattern. This however does impact on our risks in the Northern parts of South Africa as the vegetation is very dry increasing the risk of veld fires. There are also chances of heavy downpours, hail and thunder/lightning storms which are all major risks for our urban and rural risks. 

Risks prevalent to the industry


Hospitality is a specialist industry with specialist needs and this becomes even more evident under the public liability section of the policy. For example, it is important to note that when insuring a guesthouse/B&B that the liability provided also covers the owner/manager and his/her family if they stay on the same premises.

Deterioration of Stock

With the changing weather patterns and the rising inflation, the price of food has increased and therefore the stock sum insured has also significantly increased which is not always amended on the client’s policy schedule. This leads to average being applied to claims. Following on this, the value of stock in cold storage has also increased.


Business Interruption

Most businesses elect not to take this cover and do not realise the effect this will have on the continuity of their business. It is important to understand the client’s business and choose the correct extensions that are applicable to that particular business.


Proactive risk management


In tough economic times, maintenance of equipment and premises is usually the first this that gets cut off the budget and some losses suffered in the industry are largely due to poor maintenance.

Health and safety

Keep staff up to date on emergency procedures and what is expected from them in certain events as this can result in injuries or large losses when people do not know how to react in an emergency situation.


Sums insured

With the volatility of the Rand and the increase in the price of goods, building costs, etc. it is important to regularly update the sums insured to ensure that clients are properly covered.

Contact details


T 086 172 6526
F 086 689 4950