hotel insurance coverage

Insurance Coverage Hotel Owners Need

April 21, 2022

Running a hotel comes with its fair share of risks. For example, there are obvious liability concerns since 100 hundreds of people go in and out of your establishment every day. But it doesn’t stop there. So, if you’re a hotel owner, having insurance is crucial. Specifically, it’s important to have the right coverage to address all your insurance needs.

In this article, we’ll discuss the necessary coverages you’ll need to protect you and your hotel. Let’s begin.

Hotel Insurance Coverage You Need

If you’re unsure about what insurance coverage a hotel owner needs, then you must consider the following:

Workers’ Compensation

The law requires you to have workers’ compensation coverage if you have three or more employees. As you can imagine, hotels have many more than that.

With this coverage, if a worker gets injured on the job then their medical bills or lost income will be taken care of. If you fail to get workers’ compensation then you may face employee lawsuits, fines, penalties, or even jail time.

So, with this insurance coverage, you’ll be legally protected if one of your employees decides to sue you over an injury.

Business Personal Property

This coverage includes basic damages or physical losses sustained to your building or its contents. So, ultimately this will include things like the furniture, supplies, and so on.

However, before you assume certain items are covered, you need to clarify with your insurer what your exclusions and coverage limits are. If you happen to be less insured then you’d like, you have the option to expand your coverage.

Loss of Income

The extra expense coverage kicks in if your business can’t operate or generate income due to covered peril. For example, if a fire breaks out and the hotel is inoperable then as the owner you’ll be sent payments to make up for the lost income. This money may also be used to compensate your employees during the rebuilding stage.

Ask your provider what falls into the covered peril category if you’re unsure.

Equipment Breakdown

Equipment breakdown coverage is exactly what it sounds like. In the event of a loss due to an unexpected or sudden equipment breakdown, you’ll be covered. This can include your computers, photocopiers, generators, transformers, AC units, boilers, and so on.

With the help of this coverage, you can get compensated for any of the resulting damages. In fact, there’s 3 different parts to this coverage. The three components include the cost to repair/replace the equipment, lost income due to the breakdown, and compensation for any spoiled inventory.

Again, you need to be very careful when selecting the right policy so you don’t end up with one that doesn’t meet all your insurance needs.

Commercial General Liability

Commercial general liability is a must-have for all hotel owners since liability claims are the most prominent. This coverage protects you against claims filed by your guests who’ve sustained some sort of injury and hold you responsible.

The last thing you want is to be found negligent for an accident or injury and be uninsured!