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Cover the gaps in your hospitality business insurance

If you own a small or medium sized business in the Hospitality sector, such as a hotel, café, restaurant, bed & breakfast or a bakery, you’ll be aware of the wide range of issues that you may face where you’ll need legal support. These include:

  • Employment
  • Criminal Prosecution Defence (including WHS investigations)
  • Property and goods
  • Identity Theft
  • Statutory Licence
  • Compliance & Regulation
  • Tax audit or investigation that result in accountancy fees that come with an audit
  • Contract Disputes
  • Tenancy disputes
  • Debt Recovery

Most businesses will have insurance policies such as Public Liability Insurance, a Business Pack policy and Workers Compensation. While these insurances will cover you for damages and financial loss, they often won’t cover you for any legal costs involved in defending or pursuing matters. Navigating the legal environment can be complex and expensive and with all the changes and restrictions that the hospitality industry has to adhere to - it may make financial sense for a business to protect its organisation and legal position.


1 in 5 businesses

Have been involved in a legal dispute in the last 5 years


of all abandoned disputes were due to the costs associated outweighed the potential gains



As a business owner or manager you’ll usually make decisions based on the commercial realities of cost vs reward. Having legal expense insurance provides you with the choice to exercise your legal rights.
ARAG Legal Expense Insurance provide affordable and a comprehensive cover to support your business, regardless of size. It’s like having a lawyer in your back pocket.


What does Hospitality Legal Expense Insurance Cover?

Depending on your policy and business, a legal expense insurance policy will cover:

Levels of Cover
Business Comfort
Business Elite
Legal Information Helpline
Document Centre
Employee Protection (unlawful discrimination)
Employment Restrictive Covenants
Criminal Prosecution Defence (including WHS investigations)
Property and goods
Statutory licence
Compliance & Regulation
Tax Protection
Contract disputes Not Included
Tenancy disputes Not Included

For a full description of policy cover, conditions and exclusions, please read the policy wording. Limits of Indemnity apply to the product. Contractual and Tenancy disputes (Business Elite) are an additional module to Business Comfort.


Each policy comes with access to our Legal Document Centre & Legal Information Helpline. You can access at any time, no claim is required. Our legal experts and documents are there to provide you with the support and advice, that will hopefully help you avoid getting into situations where you need to make a claim. The average daily fees for lawyers in Australia may stop you being able to pursue your rights, but with an ARAG policy the weight of cost and worry is sorted. ARAG is a before the event cover, so you’ll need to get the policy before any issues come up.


Up to $3,000 daily court date


From $5,000 daily for a junior Barrister court fee
Up to $10,000 daily for a Senior Barrister
Up to $25,000 daily for a Barrister with a special



Case Studies

Check out some of our case studies, illustrating how having legal expense insurance can be for your business.

Case Study: Employee Protection

The Big Hotel has received a Fair Work Commission adverse action claim from an employee alleging that The Big Hotel engaged in prohibited conduct in response to a complaint by the employee about discriminatory action of a Manager towards the employee. The Manager has been overseeing a performance management plan implemented after a number of warnings were issued to the employee. ARAG appointed lawyers to defend the Fair Work Commission claim and attend the conciliation and when negotiations to withdraw the claim were unsuccessful, defend the claim at a hearing. All legal costs other than the excess were covered by ARAG.

Case Study: Employment Restrictive Covenants

A venue is known for their live music events which can bring in big name acts, using contacts with major booking agents. A new manager, who has been with the business for 3 years, is promoted to help the licensee organise the events. Six months later they resigned and moved to a competing venue, as did two of their senior staff just two weeks later. They are is using the same business contacts to promote acts at their new venue. The ex-employee has a 6-month post-employment restraint including restraints against poaching employees, suppliers and customers. The venue is now having acts advise they will be playing at the new venue. ARAG appoints lawyers to pursue legal proceedings against the ex-employee and the competitor for damages and orders restraining them from breaching the terms of the restraints. After the start of legal proceedings an undertaking is negotiated that stops all offending conduct up to the end of the restraint period. All legal costs other than the excess were covered by ARAG.

Case Study: Compliance & Regulation

A ‘show cause notice’ was brought against a venue by The Victorian Commission for Gambling and Liquor Regulation due to repeated noise violations being reported by their neighbours. With the assistance of an ARAG appointed legal representative to respond to the ‘show cause notice’, the venue succeeded in having the notice dismissed. All legal costs other than the excess were covered by ARAG.

Case Study: Contract dispute

A venue was approached to provide catering services for an event with an estimated 300 people in attendance. Two days out from the event the business called and cancelled the catering of the event, as their guest speaker was delayed from America and they would have to reschedule a month later. Unfortunately, as the food was already ordered they advised they client would need to pay 50% of the agreement payment which was in the contract if they cancelled within 7 days of the event. The business refused to pay the invoice that was owing after multiple conversations and emails. ARAG appoints lawyers to recover damages from the business. After proceedings were commenced the business agreed to meet the terms of the contract with venue. ARAG attended to the payment of the legal costs that were in excess of the contribution to legal costs recovered.

Case Study: Tenancy dispute

The Big Pub taken a five-year lease on a commercial property. In the contract, they have exclusive access to the on-site carpark. Shortly after the landlord advised he was subleasing part of the car park and would not reduce the rent being charged. This created distress and disruption to the tenant’s operations and resulted in them having 1) reduced numbers in the venue, 2) unable to use the car park for events. Despite trying to negotiate a resolution with the landlord the Insured contacted the ARAG Legal Information Helpline for guidance. A claim was lodged, the event was covered under their policy. ARAG appointed lawyers to assist in proceedings to claim damages and terminate the sub lease and obtain orders requiring the landlord to cease and desist any further action. The tenant received compensation and orders were made requiring the landlord to vacate the property. The tenant regained possession of the parking spaces under their original tenancy lease. ARAG paid the legal costs for the proceedings against the landlord.

Want to know more?

Ask your Insurance Broker about Legal Expense Insurance or contact us if you want to know about other products we offer.

ARAG Services Australia Pty Ltd (ABN 14 627 823 198) (ARAG) has been granted delegated authority by the Insurer to enter into, vary or cancel Policies and handle Claims on their behalf. In providing these services, ARAG acts on behalf of the Insurer and not as Your agent. ARAG is authorised to provide financial services in accordance with its Australian Financial Services Licence (AFS Licence number 513547). Any advice provided by ARAG in relation to this product is general in nature and does not take into account Your individual circumstances.
The Insurer is detailed in your policy documents.

All enquiries should be addressed to ARAG.

Any advice contained on this website is general advice only and has been prepared without considering your individual objectives, financial situation or needs. Before purchasing or renewing a product we recommend that you consider if it is suitable for your circumstances and read the policy terms and conditions.