What is Hotel Insurance?
It is a type of business insurance that protects your property, staff, guests, and income from potential risks.
It’s formed of a number of standard covers with the option to include additional cover depending on the particular needs of your business.
Typically, the standard covers within an insurance policy for hotels are:
- Hotel public liability insurance
Hotel liability insurance will form an essential part of your cover.
If a guest, member of the public, or any other third-party injure themselves while on your property, you might be liable for a claim. For instance, if a guest trips over a stack of boxes left in the hotel lobby, causing an injury.
Hotel public liability insurance protects your business from the expenses of legal matters and compensation payments if a third-party claims loss or damages due to your businesses negligence.
Similarly, if someone gets sick after consuming food or drink from your premises, product liability insurance covers the cost of a claim.
- Employers’ liability insurance
All employers are legally obliged to have employers’ liability insurance, even if you just employ casual or temporary staff. This will help to pay compensation and legal fees should one of your team become ill or injured as a result of the work they do for you.
- Building insurance and business contents insurance
Hotel property insurance will protect your establishment from the financial implications of an event such as a fire, flood, or burglary.
While your hotel building insurance covers the structure of the building and permanent fixtures and fittings, business contents insurance covers your furnishings, the equipment your business relies on, and your stock.
Your hotel business insurance should also include guest contents cover to protect your customers’ possessions against theft or damage. This type of hotel insurance for guests is a legal requirement under the Hotel Proprietors Act 1956.
- Hotel business interruption insurance
It can also include hotel business interruption cover. This will help to protect your income if you are forced to close your doors temporarily. For example, if your property is damaged by fire or flood.