Owning and running a hotel or any type of accommodation is challenging, especially in today’s difficult economic climate, but there is no excuse for not ensuring that your business, staff and guests are covered by the right level of insurance.
Hotel insurance is not just for hotels, because you will often find the right type of insurance for the following types of accommodation in brackets in this insurance category:
• Guest house
• Bed & Breakfast (B&B)
• Guest house
While there are many types of insurance when it comes to hotels and lodging, some of the things you should really look for in your coverage are:
Buildings and contents – As with any type of building you own, make sure you insure both the building and the contents for the right value, because in the worst case, you’ll need to make sure your level of insurance is enough to cover the money that you need to return the hotel to its original position.
Liability Insurance – Public, employer and product liability are all types of insurance that can be vital when it comes to your hotel, guest house, B&B or other type of accommodation. Liability insurance can help protect you if a guest falls and injures themselves, while employer liability insurance can help protect your staff if they are hurt or injured while working in or for your hotel.
Business Interruption – This type of insurance coverage is sometimes overlooked but can really be a business and life saver if your business is closed for the short to medium term. For example, if your hotel was flooded in June (it happens) and you had to close for three months to fix it up, having this kind of insurance coverage would give you some income to keep your business going.
Legal Expenses/Protection – Running a hotel means that you will probably employ staff and you will definitely receive guests and this type of insurance will cover all legal costs incurred following any disputes with customers and also with staff. For example, if a member of staff decided that they would try to sue you for some reason, this type of insurance coverage can help pay the bills if the case goes to court etc.
Above all, always check that your insurance policy offers the right level and type of cover for your business.
What to consider when choosing your hotel