Property & Finance
Insurance for cafes, coffee shops and restaurants
As the hospitality sector reopens for outdoor service followed shortly by indoor dining, I will outline the various covers and items to consider for cafes, coffee shops and restaurants.
Most insurers will apply different rates to each trade and usually will define based upon number of covers, type of food served, hours of trade and deep fat fryer usage.
Material damage cover for Buildings, fixtures and fittings, stock, computers, and other assets that your business owns. Covers will include fire, flood, escape of water, theft, and storm among other perils. Cover extensions are available such as fire brigade charges, signage and goods in transit.
Money cover. This is a standard section of all hospitality policies. It is likely we will see a culture change post pandemic due to reduced cash usage but the extent of this change is not yet known. For now hospitality policies will cover the loss of cash & cheques. The amount of cash covered can be increased depending on safe and security details. Personal assault cover can be included when carrying cash to the bank.
Employers, Public and Products liability. All hospitality insurances include liability cover. Employer’s liability is covered up to a maximum of €13 Million and depending on the business description can be based on employee numbers and/or wages. Public liability can be selected within a range of €1.3 million to €6.5 million and covers your legal liability in the event that you are negligent and required to pay compensation for bodily injuries or damage to third party property. Your trade & projected turnover will determine the rate charged. Products liability provides cover if someone is injured by a product that you have sold.
Business interruption covers consequential loss of gross profits following an insured event such as a fire. It is important to review your gross profits sum insured on an annual basis.
Other covers that can be added include seasonal increases in stock at specified times during the year, loss of licence cover, glass breakage, Cyber insurance, personal accident and many more.
It is crucial to review your policy annually checking the deep fat frying conditions, the cleaning of kitchen ducting conditions and fire protection conditions. Your policy should be tailored to your individual needs, so it pays to get expert advice from professionals who take the time to understand your business.
Five questions to ask yourself before buying a stock
By Michael O’Connor, theislandinvestor.com When it comes to investing, nothing is certain. There are no perfect stocks to buy because there’s no way of predicting the future with 100% accuracy. […]
By Michael O’Connor, theislandinvestor.com
When it comes to investing, nothing is certain.
There are no perfect stocks to buy because there’s no way of predicting the future with 100% accuracy.
The truth is, investing is hard, and building a portfolio of top stocks that beat the market is something that even financial professionals have trouble doing consistently.
For most people, investing in index funds is the perfect hands-off approach, providing broad exposure to the stock market at a very low fee. Even my own personal portfolio is made up of roughly 70% ETFs despite the fact I invest in the market for a living.
But I believe some stock picking is a good strategy for many hands-on people.
Taking a small portion of your overall portfolio and diligently selecting a small number of companies to invest in gives you an opportunity to learn about the investing process and fully understand the businesses you are investing in, which helps to build conviction in your positions.
From a psychological standpoint “collector’s instinct” kicks in, enabling people to participate and invest more money over time.
Lastly, for Irish investors, there are tax benefits to consider. If you invest in individual stocks, you are taxed at the CGT rate of 33%, and the first €1,270 of your gains are exempt from CGT each year. When investing in index funds or ETFs, you are taxed at the exit tax rate of 41% with no annual exemption.
For those interested in picking individual stocks, here are five questions you should ask yourself before investing in any company.
Do I understand the business?
Too many people invest in businesses they don’t understand because it ‘sounds good’. If you have no idea how the company works, you won’t have the conviction needed to hold onto the stock when an inevitable downturn comes.
Can the balance sheet withstand severe, temporary adversity?
This seems obvious, but so many people invest in companies without understanding how much money a company holds and who they owe money to. Economic cycles are guaranteed. You must ensure that the company has enough cash-on-hand to avoid becoming obsolete when activity slows.
Will the company benefit from long-term trends?
Make sure the company will remain relevant into the future. If the stock is cheap now, it may be cheap for a reason.
Is the company enjoying profitable growth?
Not growth at all costs, but a combination of sustainable growth and value. All this information can be found online at sites like stratosphere.io.
What are the risk factors?
Is the company trying something new and untested? If yes, who are its competitors and how successful are they? If other players are more established, this company may have a tough time breaking into the market.
Benefit-In-Kind tax rules overturned for company cars
By John Healy of Healy Insurances Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially […]
By John Healy of Healy Insurances
Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially in January.
While the move to a CO2 based Benefit-In-Kind system, which incentivises the use of Electric Vehicles and lower emission cars, a significant number of employees with vehicles in the typical emissions range experienced large increases in their income tax liabilities since the start of 2023.
To address the issue, the Finance Minister has introduced a relief of €10,000 to be applied to the Original Market Value (OMV) of cars in Category A-D in order to reduce the amount of Benefit-In-Kind payable (this is not applicable to cars in Category E).
In effect, this means that, for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000. This treatment will also apply to all vans and electric vehicles. For electric vehicles, the OMV deduction of €10,000 will be in addition to the existing relief of €35,000 that is currently available for EVs, meaning that the total relief for 2023 will be €45,000.
The upper limit in the highest mileage band is amended by way of a 4,000km reduction, so that the highest mileage band is now entered into at 48,001km.
These temporary measures will be retrospectively applied from 1 January 2023 and will remain in place until 31 December 2023. It is proposed to introduce the measures at Committee Stage of the Finance Bill 2023.
From an insurance perspective, if a vehicle is owned by a company then the motor policy in place must be in the company name and have full business use cover known as Class 2 cover. It is customary that the policy is on an open driving basis, usually aged 25 to 70. The cost for a company owned car policy can be higher than privately owned vehicles.
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