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No matter the size, hotels are located in almost every single city in the United States. With the need for hotels of all shapes and sizes increasing, the hotel industry shows no signs of slowing down. Does your hotel have the proper policies in place for all types of conduct?
People checking in and out of your hotel represent all walks of life. The types of situations that can happen are on all ends of the spectrum. This makes the necessary hotel insurance crucial for the success of your hotel.
General Liability for Hotels
The first and most generic policy that your hotel will need is a general liability policy. This policy takes care of the basics like damage, theft, or guest accidents that happen on the property. In some states, general liability policies are included in any standard business policy. Although it is not required by law, this is one of the most common policies that a business attains.
Depending on your general liability policy limits, you may want to consider excess liability insurance. Excess liability will provide additional coverage, if you exceed your general liability policy limits.
Since most hotels offer amenities like gyms and pools, having additional policy limits is something to strongly consider. These areas experience more accidents and injuries than other areas of your hotel.
Workers’ Compensation for Hotels
Workers’ compensation is another policy that is very common for all businesses. Unlike general liability, workers’ compensation coverage is required by law in most states in the US. This policy will provide coverage to your employees if they are injured on the job.
Commercial Property Insurance
Although a general liability policy will cover some aspects of your property, commercial property insurance is another policy that should be on every hotel owner’s radar. This policy will provide coverage if your building is damaged from a catastrophe.
It is important to know that this policy typically does not cover flooding or earthquakes. If your hotel is located in an area with the potential for one of these natural disasters, be sure to let your insurance agent know. They can provide you additional coverage to help in the case of that emergency.
Liquor Liability Insurance for Hotels
Liquor liability is another important policy for most hotels. Since your hotel is likely to serve alcohol, liquor liability coverage is a necessity. If someone in your staff overserves alcohol to a person, the liquor liability policy will provide coverage for damages they may have caused. This can also help protect your employee that is responsible from facing legal trouble.
Insurance for Valet Parking
Most hotels also have valet services. If your hotel has this service, you will want to have valet parking insurance. This provides coverage if one of your employees damages a vehicle while driving it to or from your valet area. If you have a high end hotel, this policy will be crucial, as your guests tend to drive upscale vehicles.
Cyber Liability for Hotels
Since all hotels electronically store sensitive customer information, a cyber liability policy is something that your hotel will need. Cyber liability will provide protection against any unlawful cyber breaches that may expose customer data.
If you do not have a cyber liability policy and your hotel experiences any type of hack, your hotel will be fully financially responsible to correct the damages. According to UpGuard, “in 2022, the average cost of a data breach has reached an ultimate high of $4.35 million, and can potentially reach $5 million by the end of 2023”. This can be rather costly to your hotel and can potentially leave you bankrupt.
In early October 2023, the MGM chain of hotels experienced a significant data breach. This breach was so intense that all computers, slot machines, elevators, smart devices, and more were impacted. Guests' credit cards and personal information were also compromised.
Although they were able to get things squared away, it is a good reminder of what can happen. All businesses that store any form of data are at risk of being the victim of a cyber attack - no matter the size of your company.
For more information on hotel insurance policies, give us a call at (303) 279-9700, or fill out the form below. One of our agents will be able to speak with you about your hotel's unique needs, and come up with insurance policies that best fit your requirements.
FAQs
Just like your hotel has different parts to give guests an amazing experience, so to does your hotel insurance provide different types of coverage to give you complete protection. The main areas of coverage are: Property Insurance, General Liability Insurance, Secondary Liability Coverages, and Additional Coverages.
What is the average hotel insurance premium? ›
Specific Scenarios:
| Small Hotels or B&Bs | For these smaller establishments, annual premiums may range from $1,000 to $3,500. |
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| Large or Luxury Hotels | Such establishments, especially those in prime urban locations or with numerous amenities, can expect premiums ranging from $20,000 up to $100,000 or more annually. |
1 more rowHospitality insurance is a type of insurance that provides coverage for events hosted by businesses. This type of insurance can help protect businesses from potential financial losses if something unexpected happens during the event, such as damage to property or injuries to guests.
Do hotels have theft insurance? ›
Hotels and other types of lodging businesses usually have innkeeper's liability insurance to cover the cost of any damage, theft, or other losses that you sustained.
Why is hotel insurance so expensive? ›
Compounding factors, such as recent weather patterns and inflation, are leading to higher insurance costs and downward pressure on hotel owners across the U.S.
Why do hotels need insurance? ›
In the hotel business, accidents happen all the time. Whether those accidents result in injuries to your guests or damage to their property, you'll need protection should they decide to take legal action against you.
Does insurance cover hotel costs? ›
Hotel stays are typically only covered by your homeowners insurance in the event of a covered loss. This means if your home was damaged and you need a place to live while it is being repaired, your policy will pay for temporary housing, whether that is a hotel, or temporary apartment.
Does travel insurance include hotel costs? ›
Your travel insurance policy can reimburse you for prepaid, non-refundable trip deposits if a trip is canceled for a covered reason. These outlays can include airline tickets, hotel rooms, rental cars, tours and cruises, says Daniel Durazo, spokesperson with Allianz Travel Insurance.
Does travel insurance cover hotel costs? ›
If you have to unexpectedly cancel your trip due to unforeseen events, trip cancellation insurance can help. This insurance covers some of your non-refundable trip expenses such as airfare and hotel accommodations, reducing your risk of financial loss.
What is a guest insurance? ›
Protect yourself from accidents at home
This type of insurance helps cover medical expenses if one of your guests is accidentally injured on or around your property. Your policy can help you pay for things like: X-rays. Surgical procedures.
Lodge insurance is designed to cover the unique exposures related to fishing, hunting, boating, and horseback riding. These activities are not without risk and it's imperative that you couple your liability insurance program with a well written waiver or hold harmless agreement.
Is a hotel an insurer of guests safety? ›
Should a hotel be responsible for its guests safety outside the hotel premises? If not, why not? yes, a hotel is liable for the loss or damage of their guest's property for the full value unless the loss was caused by an act of nature, 3rd party, or fault of the guests.
What is the most common item stolen from hotels? ›
Towels and bathrobes top the list of the most stolen items in hotels. Following these, hangers, pens, and cosmetics are the most frequently pilfered items. However, some guests go beyond these small thefts. Coolly, they take away fittings from the bathroom without a second thought.
What to do if money is stolen from hotel room? ›
You make a sworn statement to police authorities having jurisdiction within 24 hours of discovering the Hotel Theft and furnish a copy of that statement with Your claim, and; The Hotel/Motel verifies the loss.
Do hotels reimburse for stolen items? ›
Laws regarding innkeeper liability vary from jurisdiction to jurisdiction, but despite those signs claiming no responsibility for lost or stolen goods, most hotels do carry some sort of liability insurance that covers damage, loss, or theft of customer property while on premises and in the custody or control of the ...
Does trip cancellation insurance cover hotel? ›
Trip Cancellation Insurance will reimburse you for the amount of pre-paid, non-refundable travel expenses (e.g. airline, cruise, train, hotel, etc.) that you have insured, should you cancel your trip before departure for an unforeseen covered reason.
Does travel insurance cover hotel stays? ›
If you have to unexpectedly cancel your trip due to unforeseen events, trip cancellation insurance can help. This insurance covers some of your non-refundable trip expenses such as airfare and hotel accommodations, reducing your risk of financial loss.
What does a hotel resort fee cover? ›
The intent behind the resort fee is to cover the cost of providing certain amenities to guests, such as the pool or fitness center, Wi-Fi, or transportation services. While these services certainly enhance the guest experience, it can sometimes feel like an unwelcome surprise when it's added to the bill.
