If the property is lost or damaged due to theft, vandalism, fire, severe weather or another catastrophic event, this coverage will provide you with compensation for your losses. You will want to have sufficient coverage for the many things in your hotel such as the couches, electronics, furniture carpeting and amenities.
- Primary Limits up to $3,000,000 Occurrence/Aggregate
- Hired and/or Non-owned Auto
- Innkeepers Liability
- Liquor Liability
- Medical Payments Coverage – $5,000 Limit
- Additional Interests
- $250 deductible required for Innkeepers Liability only
- Basic, Broad or Special Form
- Replacement Cost or ACV
- Business Income
- Equipment Breakdown – A utility outage can have serious consequences. If there is no running water, your hotel will need to close its restaurant and may need to move guests to a new location if the problem is not resolved quickly. Utility interruption coverage provides compensation for any losses accrued due to a sustained utility outage.
- Accounts Receivable
- Computer Equipment
- Contractors Equipment
- Outside Signs
- Valuable Papers
- Food Spoilage – If a power failure or equipment breakdown causes food in your hotel’s restaurant to go bad, you could face a large financial loss. Food spoilage coverage will compensate you for lost or spoiled food.
The unfortunate reality is that many guests and workers will often sneak away with hotl valuables. Usually petty stuff such as shampoo and towels, but they can also be more valuable stuff such as exercise equipment or electronics. If an employee engages in illegal behavior while working at your hotel, this insurance can provide compensation for your losses.
- Inside the Premises – Theft of Money and Securities
- Inside the Premises – Robbery or Safe Burglary of Other Property
- Outside the Premises
With the economy on the upswing hotel occupancy is at an all time high with an occupancy level hitting (66.8%) and the highest room demand (99.4 million rooms) ever pushing annualized occupancy up to 65%. The takeaway is simple: More people are moving across the country for business or pleasure and they’re staying at hotels If people are moving around the country, be it for leisure or business.
And while this meas more customers, it also means more risk. With any business in the hospitality industry, hotels and motels face many risks that can lead to financial hardship or bankruptcy for the company.
- Like the Trump Hotel cyber liability lawsuit with plaintiffs alleging violations of Illinois state consumer protection laws and data breach notification statutes, negligence, breach of contract and unjust enrichment. The proposed class-action lawsuit has the potential to represent thousands of plaintiffs.
- Or the bride who’s wedding was ruined when she was injured by a revolving door and is suing the Adelphi Hotel for ruining her big day.
- Or the women who died as a result of a scalding shower who’s family is suing the hotel for a million pounds.
Your hospitality business is focused on serving the needs of your customers and taking care of other people, making sure they have an excellent experience while staying on your property.
You need insurance coverage that allows you to continue to serve your customers if you have a loss – and make sure you’re back up and running as quickly as possible if the worst happens. You need an insurance policy that has coverages and support specifically designed for a business in the hospitality industry. Our job is taking care of you and making sure your insurance coverage protects your hotel or motel from the hazards unique to your industry.
What Is Hotel Business Insurance?
Hotel & motel insurance is a very specific type of commercial insurance policy that has been tailored to meet to the unique coverage needs of hotel and motel owners. A hotel business has three fundamentals:
- Property/premises – Protection for your property comes under the buildings and contents insurance and should someone get hurt you have public and employers’ liability insurance.
- Staff and guests – Protection in case one of your staff or guests get injured at your hotel.
- Income – To protect the income you take from your business there is also business interruption insurance.
Keeping these three things safe should be at the heart of a hotel insurance policy. From then on everything else becomes much more dependent on the different requirements and services you may offer.
Hotel Insurance Coverage
There are many different liability risks faced by the owners and managers of hotels and other hospitality businesses. Having sufficient hotel liability insurance is vital to keeping your business financially healthy. Some of the many different types of liability coverage that are available with most hotel insurance policies are:
- General liability: This coverage will protect your should a guest get injured on your premises.
- Workers compensation: This is coverage will protect you should your workers get injured at work, such as a busboy breaking an arm while lugging too many heavy suitcases.
- Commercial auto liability: If your hotel is near an airport and offers shuttling service, you will need this coverage to protect your vehicles in cases of accidents.
- Liquor liability: If alcohol is served at the business either from a bar or room service, you will need this coverage to cover damages caused by intoxicated guests.
- Foodborne illness liability: If the food you serve is spoiled and causes your guests to get sick this coverage will protect you from the liability issues.
- Cyber liability: Cyber liability insurance provides protection from internet-related losses. Should your computer and data management system be breached, it can give cyber criminals access to your guests’ personal information, such as names, addresses and credit card numbers.
In each case, your hotel liability insurance coverage includes compensation for any associated court costs and legal fees.