You might run a small, independent hotel. Or, you might own a franchise for a major hospitality chain. Regardless of the business' size or scope, expert-tailored insurance coverage can help you protect your property, your guests and yourself if costly accidents occur. Exceed Insurance is ready to help you get the right coverage that will protect you in numerous circumstances.
Frequently Asked Questions
Hotels cater to countless needs of the public. Besides lodging, they might run restaurants and bars, and offer leisure perks like pools or gyms. There's something there for everyone. Still, whenever you host a business meeting, a wedding reception or the comings and goings of everyday guests, your hotel assumes a degree of liability for the public's safety.
Hotel insurance can pay you for the recovery costs of unpreventable or unavoidable accidents that occur on your property. You want to be able to serve your customers in the most-satisfactory ways. If something were to come along and damage the property, that ability might become impacted. Your insurance coverage can work to your advantage in these situations.
Most hospitality businesses need numerous types of commercial insurance, such as:
- Property Coverage: This insurance protects such property as your building and other structures. It will pay if you face a hazard — such as fires or weather — that damages the property.
- Contents Coverage: You will need this coverage to insure the furnishings and contents within the hotel. If damage or theft occurs, this coverage can help you replace the items.
- General Liability Insurance: You must take responsibility for all the visitors within the hotel. If you cause them property damage or bodily injuries because of mistakes, this coverage can help you compensate them for their losses.
- Business Income Coverage: If an accident, such a fire, strikes the hotel, it could cause major disruptions. You might not be able to operate while the repairs are ongoing, and that could lead to a loss of income. This portion of your coverage can help you recover such lost funding.
- Cyber Liability Insurance: This coverage will help you get control of a situation such as a data breach or a ransomware attack, when your hotel's private data might become compromised. This coverage can help you protect yourself and customers for the losses that might threaten.
- Umbrella Liability Insurance: An umbrella policy might be able to step in to help you cover outstanding costs not covered within your standard liability policies. It's an extra layer of liability protection for multiple standard policies.
- Workers Compensation Insurance: This coverage will provide a supplementary income to employees injured on the job. Most states require most businesses to offer workers compensation policies, both to full- and part-time employees.
- Employee Dishonesty Coverage: Should one of your employees steal from the business, this coverage can help you recover your losses.
- Commercial Auto Insurance: Hotels that offer shuttle services, or own a company vehicle, might need this coverage. It will work like standard car insurance, but contains coverage tailored specifically to business vehicles. Policies can also include hired/non-owned vehicle endorsements that cover an employee's personal vehicle when they use it on official business.
- Liquor Liability Insurance: If you sell alcohol on the premises, there's a chance that your sales could lead to a client harming themselves or others. The harmed party might blame the hotel for the damage. This coverage can help you settle damages associated with such claims.
- Food-borne Illness Liability Insurance: Hotels that serve food could accidentally sicken a customer. This coverage can settle with the customer for their medical costs and other losses.
- Equipment/Machinery Breakdown Protection: Broken air conditioning systems, refrigeration, and cooktops can all be costly expenditures. This coverage helps fund repairs.
- Employment Practices Liability (EPLI) Coverage: This coverage protects the hotel from claims of misconduct. For example, it might help you respond to lawsuits brought by employees who allege discrimination, harassment or wrongful termination.
In many cases, you can purchase a business owners policy, also called a BOP, for your hotel. The BOP will contain several types of coverage in one place. Usually, they automatically include structure, contents, general liability, and business income coverage. However, you can often add extra coverage to these policies as well.
Different laws might require you to buy certain types of hotel insurance. For example, you'll likely have to buy workers compensation insurance, as this is required for employers in most states.
Also speak to your franchise to determine policy requirements. Exceed Insurance recognizes that various hotel chains will require their franchisees to purchase certain coverage. We can help any franchisee get the appropriate limits for groups like Choice®, Wyndham®, Hilton® and Holiday Inn®.
Premiums for hotels vary based on multiple factors. The hotel's location, property value, service amenity and liability risks might all contribute to your exact cost. Property insurance costs the average business $1,000 - $3,000 per year, but because you’ll need other coverage as well, your premium will also vary.
At Exceed Insurance, we offer numerous coverage options, and we know how to compare policy offerings to your needs to set up and maintain the right hotel insurance portfolio for you. Whether you are starting to look for a policy, or have questions about your existing coverage, our dedicated agents are ready to help. Get started with a free quote today.
Exceed Insurance is a proud member of the Asian American Hotel Owners Association.