Those who own a business in the hospitality industry need to protect themselves, their business, their employees and their guests against potential financial losses. In order to do this, it is wise to seek out some sort of Motel-Hotel insurance policy that will work for the specific level of hospitality their business provides. The type of business can range from a individual booking a mother-in-law apartment at their home on weekly or nightly basis to a business that have several luxury hotels across the country. Some of the needs for both scenarios are close to the same, while others can be very different. And any insurance required in the hospitality industry is going to vary from what is needed for other types of businesses. The foundational needs of most any business are often the same.
Insuring the Foundation
People who run a business that maintains a physical structure, employees, and serves the public need to include some basic types of coverage in their business insurance package. The first of these is General Liability coverage. This is an umbrella policy that will cover claims that an employee or customer has been injured as a result of business operations. It will also cover damage to property owned by the business under similar circumstances. It can also protect against claims of false advertising as well. The exact amounts of coverage and a deductible will vary depending on the specific policy. It is important for business owners to read this thoroughly and ask their insurance agent any questions in order to clarify any confusing portions.
Commercial Property insurance protects the building where the business is, and the property that the business keeps inside, such as a personal computer. Often these policies will spell out certain instances that make a business eligible to make a claim against their property insurance. For example, a business may want to be protected against fire or theft. Natural disaster coverage (floods, earthquakes, tornadoes, etc) will often need to be added on separately. In addition to recovering either the actual value of what was lost or its replacement value, some property insurance might cover some of the income loss from having to cease operations while the damage is being repaired.
Commercial Auto insurance is an auto insurance policy used for business purposes. This can be the owner’s car that he or she uses to run business related errands or a delivery vehicle driven by employees.
Workers’ Compensation Insurance is usually required for businesses that employ other people to help them run their business. This covers the worker’s medical bills and gives them a portion of their income during the time when they are unable to work. It may also cover long term effects of their injury.
Other Coverage Often Needed
While these common coverage types is a good place to begin when working out a Wisconsin hotel-motel insurance policy with your agent, it is only a beginning. Equipment Breakdown Insurance, Liquor Liability Insurance, and Innkeeper Liability Insurance are all things that the owner of a hospitality business will want to consider.
An equipment breakdown can sometimes put a halt to business for a hotel or motel. For example, if the heat stops working in the middle of a Wisconsin winter, there will be little demand for people to stay at the hotel. Equipment breakdown coverage can cover this, and help the business recoup losses resulting from the breakdown.
Many hotels run a restaurant in the hotel as well, or may provide a minibar in a guest’s room on request. Liquor liability insurance coverage will help cover situations where alcoholic beverages might get into the wrong hands or under the wrong circumstances. It will cover for many adverse consequences if the beverages are consumed by
- Persons who are mentally incompetent, or
- Those who are obviously intoxicated and are at risk of severely harming themselves or others if more alcohol is consumed.
Innkeeper Liability will cover the loss of a guests property. Most policies have a dollar value assigned to this coverage, which is higher when property is given to hotel staff for safekeeping, such as holding valuable piece of jewelry in a safe. The property kept in the guest’s room receive less coverage, and a certain amount of responsibility lies with the guest to keep valuables tucked away to avoid theft or destruction.
To determine what types of insurance to include in your Milwaukee Motel-Hotel insurance policy talk to one of our insurance agents about your options.
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