The recent criminal case that found a Guesthouse Owner liable for the deaths of a young couple who
died from carbon monoxide poisoning at the premises due to the gas geyser not being properly vented
highlights the need for small businesses in the hospitality sector to have adequate liability cover for
when things go wrong.
Whether the property is a small family-run guesthouse or a boutique hotel, owners face many areas of
liability that must be carefully managed and protected against to avoid financial and reputational ruin.
Owners and operators are responsible for ensuring that their premises are reasonably safe for guests.
This includes maintaining structurally sound buildings, safe staircases, secure balconies, adequate
lighting, and properly functioning locks and security.
For example, if a guest slips on an uneven tile, is injured by a gate, door or roof collapse, or suffers harm
due to other poor maintenance, the guesthouse may be held liable for negligence. Similarly, if the
guesthouse provides meals, any food poisoning or allergic reactions resulting from improper food
handling, contamination, or failure to disclose allergens can lead to legal claims.
Guesthouses also have responsibilities related to the security of guests and their belongings. A
guesthouse may be liable for theft or harm to guests due to inadequate security measures, such as
broken locks, poor lighting, or a lack of secure access control.
Fire is another liability exposure a guesthouse may face – not only for damage or harm to guests or their
property, but also to neighbouring properties. Any lack of reasonable care in regard to fire prevention
measures could expose a guesthouse to claims for compensation from third parties.
If the guesthouse provides adventure activities like hiking, biking or boating, then an additional layer of
liability exposure is added. While indemnity forms and disclaimer notices help, they are not foolproof
protection if a guest is injured or worse.
Additionally, guesthouses collect personal data through booking systems, payment processing and
identification records. Mishandling guest data such as credit card information or passport details could
lead to liability under the Protection of Personal Information Act (POPIA) and claims for breach of
privacy. Cyber liability is also a must these days, as a digital presence is a feature just as much as the
physical property itself.
To protect against such risks, iTOO’s SureThing product is the first of its kind, an all-in-one, all-risk, third
party liability cover designed specifically for small and medium businesses. This liability cover includes
everything from POPIA regulatory enquiry legal costs and assistance to reputation management
assistance for crisis communication costs, and representation at enquiries for the breach of laws relating
to the conduct of the business.
The need for a comprehensive liability policy providing adequate cover is imperative, and while much
can be done by a guesthouse owner to mitigate against liability risks, things do go wrong. Make sure
your liability policy is able to respond adequately to the challenges faced so that owners can protect
both their guests and their business.