Insurance for Hotels and Motels
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What Insurance Do Hotels and Motels Need?
BOP Insurance is a package that combines the coverage of multiple products such as Commercial Property, General Liability and Business Interruption into one. This means that BOP will cover property damage, liability claims related to injuries and income losses if your restaurant is forced to close temporarily among other things.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Cyber Liability Insurance protects you from the theft of sensitive data. If you suffer a data breach or software attack, Cyber Liability Insurance will cover the costs of notifying and restoring affected customers, recovering data and repairing security systems.
Commercial Auto Insurance covers your cars, trucks, and vans used in your business. It covers the costs from vehicle damage in collisions, theft, vandalism and weather damage. It also covers medical expenses for to injured parties.
Liquor Liability Insurance protects a small business that manufactures, sells or serves alcohol. Small business owners are protected from claims that occur when a customer drinks too much and injures himself or someone else.
Frequently Asked Questions
What is Hospitality insurance?
Your hotel business focuses on serving the needs of your customers. Therefore, having the right insurance coverage will help you continue to serve your customers even at the event of a loss. Hospitality insurance serves as a safety net and ensures that your business runs as efficiently as possible.
Why do I need Hotel insurance?
As a hotel owner, it is your responsibility to ensure that your guests are protected and safe in their rooms. However, accidents can happen when you least expect it. When guests slip and tumble on the stairs, they could sue you for negligence and seek compensation. Hotel insurance covers the costs of the claim and the legal costs.
Which insurance would cover an accidentally set fire by a guest?
Business Property insurance protects your building and its contents, even if it is an accidentally set fire by a guest.
Do I need Liquor Liability insurance as a Hotel or Motel?
If your hotel/motel sells or serves liquor, then you need this type of insurance. The damage resulting from the sale or distribution of alcoholic beverages from your hotel or motel will be fully covered.
Why do Hotels and Motels need insurance?
These establishments provide temporary lodging as well as various entertainment and leisure services. Businesses in this industry include bed-and-breakfasts, hotels, motels, and inns. These establishments provide food and beverages as amenities, as well as different room types with different rates. Hospitality establishments like hotels and motels provide guests a sense of comfort and safety away from their home. While you offer a highly needed service to travelers, your hospitality puts you at great risk every day. If you don’t properly protect yourself with insurance for your hotel or motel, you risk the biggest loss of all, financial hardship and business failure.
What risks could Hotels and Motels face?
- Fire destroys your building: If a guest starts an accidental fire in their room or an electrical explosion causes a fire, you can be forced to close your doors until you rebuild or fix the damage.
- A child drowns in the swimming pool: The majority of hotels and motels don’t have lifeguards at their swimming pools. What happens in the swimming area is often out of your control. if a child slips into the deep end with nobody noticing, and drowns, the family can file a lawsuit holding you responsible.
- Restaurant food causes sickness: Today, many hotels have restaurants. if you serve spoiled or contaminated food that causes food poisoning, you are responsible for any Medical expenses associated with it.
- Stolen customer records: To properly do business and stay organized, you have a vast database full of sensitive customer information. This data includes names, addresses, e-mails, and credit card information. Hackers flock to small businesses with little or no cyber security in place to steal this valuable information. When that happens, there are a lot of notification, investigation, and settlement expenses involved that you have to pay.
- Theft of guest’s belongings: You can be held liable for missing items from cars, rooms, and common areas even if you have signs posted saying otherwise.