Hotel, bed and breakfast (B and B) and home owners looking to provide accommodation to the estimated 500 000 visitors during the FIFA 2010 World Cup are opening themselves up to huge potential risks by failing to take out appropriate insurance cover.

South African’s should not necessarily assume that they are covered for incidents and events that occur while renting out their homes to visiting soccer fans. People face the real possibility of being sued by foreign visitors and not having any covers to meet the ensuing expenses.

There was a recent case in which someone was sued by an American family for well in excess of R20 million due to a liability claim against a South African citizen.

It is possible for people renting out their primary residences and holiday homes during the tournament to obtain liability cover that is not normally available on traditional personal lines policies.

B and B and private individuals could benefit by specifying their cover for the duration of the tournament.

It is important to be aware of how costly disruptions to services due to unforeseen circumstances could be during the four weeks of the tournament. Owners of hotels and B and B’s should assess whether they are covered for loss of revenue due to instances such as cancellations, staff stay-aways and failure of essential equipment such
as air conditioners or heaters.

Arranging cover for this will be particularly important for B and B’s and hotels in congested areas of Cape Town and Johannesburg; especially areas close to the soccer stadiums and fan parks, where parking is likely to cause congestion and possibly blocked entrances of premises.

Noise pollution throughout the tournament is also likely to become a problem for establishments in areas close to major events. Some insurance policies already include cover for noise pollution from the premises within 500 meters of the establishment. However, it is dangerous to assume that these eventualities are automatically accounted for.

Anyone offering accommodation during the tournament should consult with their insurance brokers to clarify whether their policy will cover them for all eventualities.

A good insurance broker should understand the risks involved and will be able to ensure that their clients are appropriately covered so that there are no nasty surprises if things go wrong.