How Is Hospitality Insurance Different from Other Business Insurance Policies?

Hospitality insurance covers a wider range of risks than other business insurance policies. It’s typical for a hotel or motel to get a Business Owner’s Policy (BOP) and add other coverage.

A dedicated hospitality insurance program might be the best way to go if your business is too big to be covered by a BOP plan. One of the main factors that make the hospitality industry different from other industries is that it involves stay-over guests, which increases liabilities.

What businesses need hospitality insurance?

Any business that offers lodging facilities should consider hospitality insurance. This includes hotels, motels, hostels, and bed and breakfast inns. A BOP plan covers the basics of hospitality insurance, as it’s a combination of commercial property insurance and general liability insurance.

Liability coverage for hotels and motels

Here are some of the critical types of coverage that a hotel or motel requires to ensure its financially protected:

  • General liability – This coverage pays for losses or injuries experienced by a guest caused by the facility or its staff.
  • Cyber liability – If hackers invade your network, this coverage pays for damages to computing devices and other losses related to a breach.
  • Workers’ compensation – Required by all states for businesses with a certain number of employees, this coverage pays for medical bills and lost wages owed to workers injured on the job.
  • Commercial auto – Another state requirement for companies that own vehicles, this coverage pays for damages caused by your company drivers. It may also cover damages to your vehicles.
  • Employment practices liability – If an employee accuses your business of discrimination, harassment, or other unethical practices, they can go to court. This coverage pays your company’s legal fees, including settlements.
  • Premises pollution liability – If a guest becomes ill due to mold infestation or other pollutants, this coverage pays for their hospital bills. It may also pay to clean your facility.
  • Liquor liability – You need this coverage if your establishment serves alcohol. It protects against damage caused by drunk patrons to others.
  • Illnesses from food – This coverage is necessary if your hotel or motel serves food to guests. It will protect your company from lawsuits related to food-borne diseases.

What type of property and asset protection is required for hotels and motels?

  • General property – Protects against theft, vandalism, and damage to your commercial property
  • Business interruption – Pays expenses if your business is forced to shut down temporarily
  • Equipment malfunction – Covers equipment repair and lost income
  • Food spoilage – Pays to replace food spoiled due to a power outage
  • Utility interruption – Covers loss of revenue due to a power outage
  • Crime – Protects against employee theft

Do you need hospitality insurance for your hotel or motel? Contact our team at RMS Insurance for more information on how to protect your assets. We are ready to assist you in getting the coverage you need.