Providers of Hotel, Motel and Bed and Breakfast accommodations have unique insurance needs that differ based on size, location and services offered. Often many different types of insurance are needed to protect hotels and motels and related business operations.
The greatest concern for hotels and motels is potential injury of customers from fire or natural disasters, such as hurricanes or earthquakes. Very high limits on commercial liability and umbrella liability coverage are generally recommended to protect lodging businesses.
A Business Owners Insurance policy offers general liability and property protection, including coverage for the hotel building, outdoor pool furniture, beds, chairs, refrigerators, carpeting, wall art and other items inside your hotel or motel. The business owners’ insurance policy also covers intangible business assets, such as valuable records and electronic data files kept on your computers. Commercial property insurance covers the buildings and their contents and protects against business interruption. Flood Insurance is also needed if the facility is located in an area prone to flooding
Commercial auto or fleet insurance covers auto accidents that may occur in a hotel car or shuttle, including injuries to guests and employees and damage to vehicles. Hotel or motel mobile equipment for maintenance (such as fork lifts and lawn maintenance equipment) is covered through an inland marine insurance policy. If hotel or motel parks cars or offers vehicle storage, Garage Keepers Legal liability insurance may be needed to cover customers’ cars that are left in your care.
All employees in hotels and motels are protected with workers comp insurance, which is required by law in all fifty states, pays for medical care to your employees if they are injured while working. Workers comp covers injuries from accidents and illnesses that are caused by work. It protects your motel from being sued by workers if injuries occur and helps employees cover medical expenses. Many hotels and motels also carry Employment Practices Liability Insurance which covers suits from employees alleging wrongful termination, sexual harassment, failure to hire, failure to promote, non-compliance with the Americans with Disabilities Act, and other similar employment actions.
If the lodging facility serves food and or beverage, a commercial liability insurance policy also provides coverage lost inventory and related costs. If alcoholic beverages are sold, a separate Liquor Legal Liability policy is needed to cover losses that stem from on premises and off premises claims.
Hotels and Motels that hold valuables for quests can limit risk through innkeepers legal liability insurance that covers the property of others stored by hotels or motels. But this coverage does not include coverage from guest’s property stolen by hotel or motel employees, which is covered by an employee dishonesty bond or an employee dishonesty policy.
To create an insurance plan that matches the business needs of your hotel or motel company, contact Golden Global Insurance at 305-899-5125.