Hotels serve a significant purpose in society as thousands of people around the world travel every day. However, there are a lot of risks associated with operating a hotel. Hotel insurance is a specific type of business insurance policy that protects your business against the different liability risks related to running a hotel.
Types of Hotel Insurance
Unemployment Insurance: As a hotel owner, you are required to obtain unemployment insurance. This is included in your state taxes. Your hotel is covered once you are certified by the state’s workforce agency.
Medical Insurance: If your hotel has a large number of employees, you are required to offer them subsidized health insurance.
Business Insurance: This is essential to protect your hotel from suffering substantial losses due to fire or natural disasters.
Liability Coverage Available with Hotel & Motel Insurance Policies
A few of the liability coverages available with hotel and motel insurance policies are:
- General Property Coverage
This coverage protects your business and compensates you for losses incurred if any furniture, amenities, decor, or electronics are stolen, vandalized, or damaged.
- Business Interruption Coverage
If your hotel catches fire or is damaged due to a hurricane or tornado, business interruption coverage will protect you. The policy replaces your lost income while your hotel is shut down to deal with the repairs. You should still be able to meet your expenses and pay your employees.
- Equipment Breakdown Coverage
Equipment breakdowns can interrupt your business operations. You’ll certainly lose some customers until the equipment is restored. Equipment breakdown coverage will take care of the repairs and prevent you from suffering a drastic loss of revenue.
- Food Spoilage Coverage
If your hotel loses power for an extended period of time, that can damage the food stored in your hotel. Food spoilage coverage will compensate you under such circumstances.
- Utility Interruption Coverage
If your hotel is having utility issues, you will have to close the restaurant. However, utility interruption coverage will cover any losses sustained because of the utility outage (such as a lack of running water).
- General Liability Coverage
General liability coverage protects your business against possible lawsuits because of injuries or property damage sustained by guests while they were staying at your hotel.
- Workers’ Compensation
Workers’ compensation covers your business if an employee sustains an injury in the workplace. It takes care of their medical expenses and lost wages.
- Commercial Auto Liability
Generally, hotels utilize limo or shuttle services to drive their guests around. If your hotel utilizes these services, commercial auto liability coverage will protect you if one of your vehicles causes an accident or property damage.
- Cyber Liability Coverage
If your computer management system is compromised, hackers can gain access to sensitive information, including your guest’s financial accounts and addresses. Your hotel will be held responsible, and you could face a serious lawsuit. Cyber liability coverage protects your business from such losses.
Other Options to Consider
- Crime Coverage
Crime coverage protects you against possible losses as a result of theft. If a guest or employee steals something, crime coverage will compensate you for the losses.
- Hotel Guest Relocation Services
If a fire or power outage causes you to relocate your guests, you will be compensated for the expenses associated with relocating your guests.
- Umbrella Coverage
If you are involved in a liability dispute that exceeds your coverage limits, umbrella insurance protects you from possibly losing everything.
If you have more questions related to hotel and motel insurance, contact our experts here at First Insurance Solutions today. We will assist you in getting a comprehensive policy for your unique needs.