What is Hotel Insurance | Insurance Coverages for Hotels Businesses

Hotel Insurance

Hotel owners take great risk in opening an accommodation business to travelers and visitors by providing them with food and other vital services.

Business assets of hospitality businesses, like those described above, which include guest seats and furniture or other equipment, can be lost by fire outbreaks. At the same time, they may be held liable for various illnesses or injuries incurred by guests or workers.

These risks demand the most entire possible hotel insurance. Hotel insurance refers to multiple policies protecting a hotel business from common perils, including fire damage by storm, theft, and vandalism.

What Does Hotel Insurance Cover?

Many risks are involved with hotels, given the vast amount of flux of people going in and out of the premises. The bigger a hotel is, the more services it has, increasing the types of risks that the business will run.

Fortunately, among all types of risks, the business owner can be protected by hotel insurance.

The following parts demonstrate some of the risks commonly covered under ordinary hotel insurance.

1. Slips, Falls, and Other Injuries

The occasional injury in a hotel setting is understandable. All ages of people visit a hotel, and it is common for injuries to occur, ranging from minor bumps and bruises to other more severe and extensive injuries.

In such instances, should any form of accident bring about injury to a guest in the hotel, fault will be on the hotel, rendering them liable to compensate a guest for lost wages, medical expenses, pain, and suffering, or any other related damages. 

General liability coverage is vital in businesses against third-party injury claims.

2. Theft and Vandalism

Guest rooms, or, for that matter, hotels, are most vulnerable to theft and vandalism because guests have unsupervised access. Criminals/guests may steal items from rooms or deface property at will.

Most theft and vandalism are covered under a commercial property insurance policy. Carefully review the policy to see what incidents it has covered in its terms.

Commercial property insurance policies protect against losses of or damage to the building due to fire, storms, or other catastrophes.

3. Rowdy and Intoxicated Guests

Hammad Hater angry hotel guest gesturing thumbs downHotels that sell or serve alcohol will generally experience the occasional loud and intoxicated guest:. Some guests, when drunk, may act out and cause injuries to third parties or damage property.

Even though an inebriated guest, most of the time, will be responsible for their actions, the hotel could still share some liability if it is shown to have sold or served the alcohol to the guest.

For example, obtaining liquor liability insurance can cover such items as fights, bodily injuries, DWI accidents, sexual assault, and other concerns of this nature.

4. Data Breaches and Cyber Threats

Much like other business models dealing with modern organizations today, there is so much technology involved for intake, sending out, and storage of very crucial information concerning the guests. While most hotels take exquisite precautions against breaches in their data and other cyber threats, the risk remains that one such cybercriminal could breach that same.

A data breach can cause severe damage to the hotel since the businesses maintain credit card information belonging to the people who visit them. Cyber liability coverage protects against data breaches and other attacks through the internet.

What Types of Insurance Do Hotels Need?

Hotel insurance can cover more than just your guests’ rooms and your hotel lobby. There are various insurance policies to give you complete coverage that will also tend to other areas of your operation, such as conference centers, golf courses, special event facilities, fitness centers, swimming pools, and spas.

Using the services of an experienced insurance agency will help the hotel owner in designing a custom-made insurance package that avoids unnecessary expenses by staying focused on business needs and financial budgetary constraints. The most important kinds of insurance that a hotel shall have to buy include: 

  • Commercial General Liability Insurance
  •  Commercial Property Insurance
  •  Commercial Auto Insurance
  •  Equipment Breakdown Insurance
  •  Workers’ Compensation Insurance 
  • Cyber Liability Insurance 
  • Garagekeepers & Non-Owned Liability Insurance 
  • Liquor Liability Insurance

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