You've worked hard and finally started your own hotel with plenty of rooms, a dedicated staff and a wonderful location. Now is just a matter of insuring your assets. But what kind of insurance does a hotel even need?
Hotel insurance refers to business insurance tailored for hotels. Hotels come with unique risks that must be covered in the event of an accident or a claim. Common insurance coverages for hotels include:
- General Liability Insurance: This protects your business' assets against property damage and personal injury claims that arise from every-day operations.
- Commercial Property Insurance: This covers the physical property in the event of damages due to such covered incidents as fire, theft, vandalism and windstorms.
- Professional Liability Insurance: While general liability coverage deals with non-professional negligence, professional liability protection covers your hotel in the event of claims due to professional negligence. This means that if someone is injured or their property is damaged due to the company's negligence — or that of an employee, professional liability will cover you.
- Liquor Liability Insurance: Most hotels have bars that serve alcohol. For this, you'll need liquor liability to protect the business in the event a patron drinking at your establishment causes harm or property damage to someone else.
- Workers Compensation Insurance: Just about every business requires workers compensation coverage. Workers compensation insurance provides protection in the event an employee is injured on the job.
- Commercial Auto Insurance: Personal auto insurance typically won’t cover work vehicles. You need commercial auto insurance if you employ caterers or other workers who drive for the company.
- Innkeepers Legal Liability Insurance: This liability insurance is specifically for hotels and motels. It protects the business against damage done to guest property.
- Business Interruption Insurance: Some disasters may make it impossible to operate. If your hotel needs to be evacuated or its business put on hold, business interruption insurance helps pay for the income lost during that period.
- Extra Expense Coverage: Along the same lines as business interruption insurance, extra expense provides monetary assistance if you and the business must move elsewhere while the hotel or motel is under repair.
You can bundle these coverages in multiple ways. A business owners policy, for example, bundles general liability and property coverages.
As with any business, hotels and motels need insurance to protect their assets and their guests. Serving guests always comes with its own set of risks. It's important to account for those within your insurance policy.
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