Hotel Insurance

As a core pillar of the hospitality industry, hotels may provide valuable services and commodities to vacationers, business travelers and those needing short-term living accommodations. However, welcoming guests to your business’s premises includes many risks and exposures. Even the most experienced hotel operators and employees may eventually be responsible for an accident or other incident that results in significant financial losses. With this in mind, acquiring and maintaining a versatile hotel insurance portfolio should be prioritized.

What Is Hotel Insurance?

Your hotel should first understand that hotel insurance typically does not refer to a single type of coverage capable of addressing all risks and exposures. Rather, hotel insurance may refer to a package of policies that, when combined, create a sufficient safety net across many common incidents. Each of these policies includes premiums, and as long as you keep up with your payments, you can retain access to critical financial assistance that may help limit your out-of-pocket losses following a covered incident.

Although exact coverage needs may vary, the following types of insurance may be advisable investments:

• General liability insurance—This coverage may help pay for third-party losses for which your hotel was at fault. For example, if a guest is injured while on the premises or their property is damaged, general liability insurance may provide compensation.
• Business interruption insurance—This coverage can provide financial security for your hotel by compensating you for losses and expenses incurred due to an incident that delays or disrupts your normal operations.
• Workers’ compensation insurance—This coverage may offer financial assistance in response to employees’ on-the-job injuries or work-related illnesses. This type of insurance is often legally required and can help pay employees’ medical bills, lost wages and disability benefits, and your company’s legal costs.
• Employment practices liability insurance—This coverage may help pay for legal costs and financial losses arising from a current, prospective or former employee suing your hotel for improper workplace practices, such as discrimination, harassment or wrongful termination.
• Cyber liability insurance—This coverage can help your hotel recoup losses and costs from a data breach or other cyber incident.
• Commercial umbrella insurance—This form of secondary insurance can provide additional financial assistance if the liability limits of other policies, such as general liability and cyber liability, are exhausted.

Your hotel may require additional insurance policies depending on its features, operations and other unique characteristics. For example, if your hotel includes a bar or uses motor vehicles, liquor liability and commercial auto coverages should be considered essential.

What Does Property Insurance for Hotels Entail?

As a hotel, your property may include many valuable items and commodities. With guests regularly entering and exiting your premises, and while having to account for inherent risks that may affect all physical businesses regardless of industry or size, your hotel insurance portfolio should thoroughly address losses involving your property.

Fortunately, commercial property insurance, also known as business property insurance, can provide critical financial security for your business’s assets and belongings. In response to many common perils, such as fires, lightning, theft, vandalism and hail, commercial property insurance may help your hotel recoup losses involving the following:

• Buildings
• Electronics
• Equipment
• Furniture
• Inventory
• Landscaping
• Signage

In many cases, windstorms, floods and earthquakes are not included in standard commercial property insurance policies. If your hotel is in a location at risk of these incidents, you should seek to augment your coverage accordingly.

Get the Right Coverage

For over two decades, the dedicated staff at Exceed Insurance has worked with businesses, families and individuals to establish and maintain optimal coverage solutions. Our agents will work with your hotel to analyze its circumstances and assemble an insurance portfolio capable of providing robust financial protection. Contact us today to get started.