hotel insurance faqs

Motel and Hotel Insurance FAQs

April 19, 2022

Owning and successfully running a motel or hotel requires a lot of time, energy, and cash. Your building is likely your largest asset; therefore, adequate insurance is essential.

Unfortunately, the pandemic has put a strain on the motel and hotel insurance market during the past couple of years. Many of the top carriers have exited the market or refused to take on new business. As a result, premiums have risen and coverage options have worsened.

Navigating the motel and hotel insurance process was already stressful and overwhelming for owners, so this has made it even more difficult. In fact, you probably have several questions regarding your policy.

In this article, we share some common motel and hotel insurance FAQs. Let’s begin.

Motel and Hotel Insurance FAQs

Here are the top 5 common questions surrounding motel and hotel insurance.

What Coverages Do I Need?

There are a lot of risks in the hospitality industry, such as injuries, food poisoning, property damage, cyber theft, etc. So, to protect yourself from the various risks that exist, you’ll need optimal coverage.

Here’s a list of multiple insurance coverages you may need for your motel or hotel:

  • Workers’ Compensation
  • Commercial Property 
  • Equipment Breakdown
  • Business Interruption
  • Cyber Liability 
  • Umbrella Liability 
  • General Liability
  • Food and Product Liability 
  • Employee Practices Liability
  • Employee Benefits 
  • Inland Marine 
  • Business Personal Property
  • Employee Dishonesty 

If you’re unsure what coverages you need, one of our trained agents can guide you through the process.

Can I Have More than One Hotel on the Same Policy?

You can have more than one hotel or motel on the same policy. These properties would be included in a commercial policy and your carrier may recommend blanket insurance. This can either protect the same kinds of property in two or more locations or different types of property in multiple locations.

Do You Need Proof Of Insurance From Contractors?

In a hotel, you’ll have contractors coming in and out regularly. Therefore, as the owner, you need to ensure that every contractor that comes in provides proof of insurance. This can include workers’ compensation or general liability insurance.

You don’t want to be left responsible if one of them gets injured and decides to sue!

Can I Get Discounts On Hotel And Motel Insurance?

You should most definitely ask about discounts! Contact your insurance agent and ask whether or not you qualify for any motel or hotel insurance discounts. There’s more than you may think.

Want discounts? Here’s what you need to do:

  • Install fire and burglar alarms
  • Own a franchise
  • Have a clean claim history 
  • Incorporate safety training and programs 
  • Be in business for a while
  • Install sprinkler systems 

How Much Liability Coverage Is Necessary?

Liability claims are extremely common in the hotel and motel industry. In fact, the number one claim filed is for accidents or injuries. So, as you can imagine general liability coverage is crucial.

You may be asking, how much coverage do I need? Well, it all depends on the number of employees and rooms you have, as well as your location.

If you’re unsure on how much general liability insurance you need, talk with an insurance agent who can help guide you in the right direction. You’ll likely need an umbrella policy in case the damages ever exceed your limit.

Summing Up

By getting the right policy for your hotel or motel, you can rest assured knowing you’re protected. We understand how overwhelming the whole process can be; therefore, these motel and hotel insurance FAQs should provide some insight.