Hotels & Motel Insurance

Hotel insurance is a type of insurance that’s specifically designed to meet the needs of hotels. Hotels provide guests with many services, and each one of those exposes the hotel to certain potential risks. . Additionally, a hotel that serves food may be found liable for any food-borne illnesses its dishes spread, and one that has a pool might be held responsible for any accidents that occur in the pool area. These are just a few of the many possible risks that a hotel may face. Because they’re exposed to so many perils, it’s important for hotels to have robust hotel insurance policies. Hotel insurance is a type of insurance that’s specifically designed to meet the needs of hotels. It’s normally written as a package policy, which means one policy contains multiple individual coverages.

Insurance for hotels is highly personalized, meaning costs can vary greatly depending on the property’s needs. Business owners should keep in mind that insurance premiums and costs can depend on the type of coverage, assets, location, and the size/number of rooms. To understand the potential hotel insurance cost for your hotel, it’s best to talk to an industry expert about your options.

Since hotels often have many insurance needs, hotel business insurance policies frequently include lots of different coverages. Broadly speaking, policies’ coverages can be separated into liability coverages and property coverages.Liability coverages generally protect a business from claims and lawsuits that accuse the business of causing some form of harm. Some liability coverages that hotel policies may include are: General liability coverage, which offers protection from many potential incidents; Premises pollution liability coverage, which might provide coverage for illnesses guests experience that are caused by mold spores or other airborne contaminants; cyber liability coverage, which may help hotels recover from data breaches that compromise guest information; Employment practices liability coverage, which can help protect a hotel from employment-related lawsuits; Commercial auto liability coverage, which hotels that have shuttles are typically required by state laws to carry; Food-borne illness liability coverage, which hotels that have restaurants or offer morning breakfasts may want; and Liquor liability coverage, which hotels that have bars or offer alcohol might need.Property coverages are used to help protect a business’ property, which may include buildings, other structures, equipment and inventory, from covered perils. Some property coverages that hotel policies might have include: General property coverage, which may provide coverage for a hotel’s building; Equipment breakdown coverage, which might help pay for repairs that equipment needs if a covered peril causes the equipment to breakdown; Crime coverage, which may provide coverage for guest and employee theft; food spoilage coverage, which might provide compensation for food that spoils during or immediately after a covered incident; Utility interruption coverage, which may help cover losses sustained during a prolonged utility outage; Earthquake and flood coverage; and wind coverage, which is important for hotels situated near oceans.

The hospitality business is prone to many unique risks ranging from property damage, theft, and vandalism to food contamination. Hotel insurance contains multiple individual coverages to address all of these potential risks and more. The coverages that a hotel might want to include in its hotel business insurance policy depends on the circumstances. A hotel that hosts weddings or conferences, for example, may want event cancellation insurance, and any hotel might want hotel guest relocation services in case guests must be moved to another hotel during a stay. Some other important coverage includes workers' compensation coverage, hotel umbrella insurance , and crime coverage in the event of a loss. The individual coverages contained within a commercial hotel insurance policy are often customized for a particular hotel’s situation.

In general, hotels and motels should look for hotel business insurance, which is specifically designed for hotels and motels. Hotel policies take into account the large number of rooms that hotels and motels offer, as well as the many amenities they may provide. Bed and breakfasts and small inns also should have insurance, but their insurance needs are slightly different. Many insurers provide slightly different hospitality insurance options for establishments that have fewer rooms and amenities.