Hotel Insurance Guide
As a hotel owner or operator you will come to expect the unexpected. As your primary responsibility of providing comfort, safety and security to your guests, insurance will be an integral part of your effort. Having the proper insurance coverage not only protects the health of your business but also the guests who visit your hotel.
So where to start? A good assessment of your premises, systems and procedures will help you uncover potential areas of risk. You also have to understand that the risks will change over time. 20 years ago were you worried about hackers stealing employee/customer information and shutting down online systems until a ransom is paid? Probably not, but today this is happening all over and causing major headaches for hotel owners.
Once you have uncovered your areas of concern the question is how can we prevent these bad things from happening, and if they do happen what will be our procedure to clean up the mess? This is where a trusted independent agency can help. Your agent should regularly review your insurance program with you and help you assess and mitigate risk. Not every hotel operation is the same and not every hotel requires the same insurance coverage. Your agent should have in-depth knowledge of the hotel insurance marketplace and provide consistent support.
Here is a list of some primary insurance coverage recommendations as well as other options to consider while reviewing your insurance program.
Must Have Coverages
· Building and business property coverage
o Protection in case of fire, weather related damages, theft
o Must keep in mind Earthquake and Flood loss (along with others) is typically excluded from an insurance policy and may require a separate policy. Take into consideration depending on your hotel geographical location
o Business income – coverage that will pay you during an interruption in your business due to a covered loss
· General liability/protection against litigation
o Slips and falls from visitors happen regularly at hotels and often times can lead to a lawsuit brought against the hotel
o Protection against liability from bodily injury and property damage to others
o Have a pool on the premises? Certain amenities can increase your exposure to incidents
· Commercial auto coverage
o Liability for your maintenance and staff vehicles
o Physical damage to vehicles you own
o Do you provide valet parking or transportation of guests?
· Workers compensation coverage for employees
o You are required to provide coverage incase employees get hurt in the course of their employment
· Umbrella policies
o Extra layers of protection for your business
o Help fill in the gaps of your underlying insurance coverage
· Liquor/Restaurant liability coverages
o Operating a restaurant at your hotel?
o Training for staff on over serving of alcohol
o Safety/cleanliness of kitchen and food handling
· Contractor agreements
o Always collect a certificate of insurance from a contractor or entity who will be performing work for your hotel
o Have an agreement in place with the contractor requiring your hotel be additionally insurance under their insurance , also expectations of work being performed
· Snow and ice removal procedure
· Make customers aware of emergency procedures
· Staff handbook and training on how to deal with situations
· Consider an insurance company who can provide extended protection
o Costs to house and transport customers due to an incident at your hotel
o Coverage for guests property
o Errors and omissions coverage
o As well as many other options available
We hope this helps you get started on your quest to operate a safe and healthy business environment. Briggs Agency, Inc is a trusted independent insurance agency that can help you get the right protection for your business, and do it within your budget. We have decades of experience with the hotel insurance industry and work with the best companies in the business.
You can get ahold of us anytime to schedule an onsite visit at your hotel to review options. We are happy to provide you with a second opinion on your business insurance.
Get in contact with us on our website, facebook, or give us a call at 219-769-4840
Andrew T Briggs
Briggs Agency, Inc.