Hospitality businesses warned about dangers of rising costs of raw materials

13-Jun-2013 - Last updated on 26-Apr-2021 at 17:30 GMT

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Hospitality businesses have been warned about the dangers of the rising cost of raw materials

Almost a third of UK hotels and catering firms are looking to cut costs due to the rising prices of raw materials, according to new research.

A study by commercial insurer NIG has found that one in 10 businesses are worried they may now be under-insured against unintentional damage because of the rising costs of raw materials.

"The UK hotels and catering sector is facing a number of challenges and the rising costs of raw materials has clearly become a key concern for the owners of hotels, caterers and similar businesses," said Martin Hall, director of commercial underwriting at NIG.

Hall urged businesses to conduct a risk assessment with their insurance broker to ensure they were still adequately covered: "While many are taking steps to cater for these challenges, it is vital that businesses assess the risks they face and make sure they are not leaving themselves exposed to unnecessary risks and threats. If companies have changed processes, products or moved property, for instance, they need to let their insurance broker knows as this could impact their cover," he said.

The research was conducted by BDRC Continental last August - the firm quizzed 500 UK businesses with an annual turnover over £50k.