Does Your Agent Specialize in Hotel Insurance? We Do!
As with any business in the hospitality industry, hotels and motels face many unique risks that can lead to financial hardship. You need an agent that understands the hotel market. For over 20 years we have been developing custom insurance programs for hotel and motel owners. If you currently carry or are considering purchasing insurance coverage for your hotel or resort property, Philleo Agency Insurance can help! Philleo Agency Insurance, Inc is a top insurance broker with extensive experience in securing coverage for hotels and resorts. Our team has the specialized knowledge required to deliver the coverages you need at an affordable rate. Philleo Agency offers competitive Hotel and Resort Insurance with tailored coverage forms. Our Hotel and Resort Insurance programs offer coverage from top-rated carriers. Contact us to see how we can help you!
What Is Hotel Business Insurance?
Hotel and Motel insurance is a very specific type of business insurance policy that has been tailored to meet the unique coverage needs of hotel and motel owners. There are many different coverage options available, allowing you to build a policy that is sufficient to meet your unique requirements.
Hotel Business Insurance Provides Liability Coverage
There are many different liability risks faced by the owners and managers of hotels and other hospitality businesses. Having sufficient hotel liability insurance is vital to keeping your business financially healthy. Some of the many different types of liability coverage that are available with most hotel insurance policies are:
General Liability:
Perhaps even more important than Property Coverages is making sure you are insured with a Commercial General Liability or CGL. Liability insurance is an important aspect of every business. With hotels and other habitational types of risks, there is a significant amount of exposure present, since the business is potentially responsible for bodily injury that is sustained by its guests. These claims could range from a guest slipping on an icy sidewalk to more tragic situations resulting from a structure fire.
Workers Compensation:
If an employee is injured on the job, your business is required to cover any ensuing medical expenses. Every state has its own workers’ compensation requirements. Your hotel business insurance can include this coverage to meet your state’s mandates.
Commercial Auto Liability:
Many hotels have limo or shuttle service available. If your hotel owns the vehicles to transport guests, you will want to be sure to have liability coverage that meets your state’s minimum coverage requirements.
Liquor Liability:
If your hotel includes a bar or offers alcoholic beverages with your room service orders, you will need liquor liability insurance. It protects you if a guest becomes intoxicated and causes property damage or bodily harm to himself or others.
Food-borne Illness Liability:
Many hotels include a restaurant and room service. If the food you serve is contaminated with E. coli or salmonella, or any other food-borne illness sickens your guests, this coverage will shield you from the ensuing liability costs.
Premises Pollution Liability:
If your hotel becomes contaminated by mold spores or other airborne pollutants that can sicken guests, you may face liability charges. This insurance will provide coverage for ensuing medical bills and punitive fees and will help cover clean up costs.
Cyber Liability:
If your computer and data management system is breached, it can give cybercriminals access to your guests’ personal information, including names, addresses, and credit card numbers. If this happens, you will be responsible for providing all affected guests with credit protection services and could face harsh penalties. Cyber liability insurance provides protection from internet-related losses.
Employment Practices Liability:
This insurance protects you from losses associated with lawsuits brought against your business by disgruntled employees.
Hotel Business Insurance Covers Your Property and Income
Opening a hotel requires a substantial financial investment. You will want to be sure to have protection for financial losses associated with property loss and loss of income. Some coverage options that can afford you this protection include:
General Property Coverage:
Building, furnishings, electronics, décor, carpeting, and amenities. If buildings or property are lost or damaged due to theft, vandalism, fire, severe weather, or other catastrophic events, this coverage will provide you with compensation for your losses. You will want to have sufficient coverage for the building, property, and equipment in your hotel.
Equipment Breakdown Coverage:
An equipment breakdown can have a serious effect on your bottom line. If you have an equipment failure in your kitchen, it can affect your restaurant and room service revenue. A failure of your computer system can cause lost reservations and angry customers. Equipment breakdown coverage will provide funds to repair faulty equipment and to make up for loss income that resulted from the failure.
Business Interruption Coverage:
This coverage might be listed as “BI/EE” and it provides coverage for a loss of income due to a covered cause of loss. For example, if the hotel was to have a fire, and become unlivable for an extended time period, Business Income coverage can provide the business owner with payments to replace their lost income during the time they are unable to conduct typical business operations.
Crime Coverage:
You can protect your hotel from losses stemming from guest and employee theft. If an employee engages in illegal behavior while working at your hotel, this insurance can provide compensation for your losses.
Food Spoilage Coverage:
If a power failure or equipment breakdown causes food in your hotel’s restaurant to go bad, you could face a large financial loss. Food spoilage coverage will compensate you for lost or spoiled food.
Other Coverage Options Are Available
Many hotel and motel insurance companies will offer several other coverage options from which you can choose. Some of the more popular include
Umbrella Coverage:
Every hotel owner will want to consider purchasing an umbrella insurance policy to meet any excess liability charges you may be faced with. This additional coverage can save your business from bankruptcy following a catastrophic loss.
Do I Need Hotel Insurance for My Bed and Breakfast?
Bed and breakfast establishments and small country inns tend to have slightly different insurance coverage needs. These businesses take in far fewer customers each night and provide different amenities to them. For example, a bed and breakfast will typically not offer room service, swimming pools or fitness centers, but will offer home-cooked meals, lovely scenery, and personalized service. Many insurance companies offer special bed and breakfast insurance policies designed specifically for these smaller businesses.
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