Hotel Insurance

What is Hotel Insurance?

Hotels provide guests with many services, and each one that a hotel offers exposes the hotel to certain potential risks. Almost any hotel, for instance, might be sued by a guest who’s injured while spending the night or could have property damaged during a burglary. 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. The individual coverages contained within a policy are often customized for a particular hotel’s situation.

What Coverages Does Hotel Business Insurance Provide?

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.

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Hotel Insurance

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
  • Liquor Liability Coverage, which hotels that have bars or offer alcohol might need

Protect Your Business

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

There are still more coverages that a hotel might want to include in its hotel business insurance policy. 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. 

Hotel Insurance

What Businesses Should Consider Hotel Business Insurance?

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 insurance options for establishments that have fewer rooms and amenities.

Make Sure You Have the Right Coverage

How Can Hotels Get Hotel Insurance?

Because hotels need several (sometimes many) insurance coverages, they should find an insurance agent who is familiar with the needs of businesses in the hospitality industry. An experienced agent who has served other hotels will be able to help another hotel in the city thoroughly consider its risk exposure and find a hotel insurance policy that provides the coverages the hotel needs.

Meet Your Industry Specialist

Jeff Kroeger

Principal, Senior Vice President, and Head of Commercial Lines, Mr. Kroeger also manages the company's hospitality book of business and is that unit's primary producer. He is a graduate of Montclair State University and was named a 2015 Young Gun Insurance Business America.

Jeff has been providing exceptional insurance for restaurants, bars, nightclubs, and more for many years. He understands the unique challenges this industry faces and delivers the right coverage at an affordable price.

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