Hotel owners accept a large amount of risk when they open a business that provides accommodations, meals, and other essential services for tourists and travelers.
Businesses such as these in the hospitality industry may encounter losses to business assets, such as furniture and equipment. Business owners may also be liable for illnesses or injuries sustained by guests or employees.
To protect against these types of threats, hotels require comprehensive hotel insurance. Hotel insurance refers to multiple policies protecting hotel businesses from common perils, such as fire, storm damage, theft, and vandalism.
Learn more about hotel insurance, what it covers and what types of businesses need these policies.
What Does Hotel Insurance Cover?
Hotels are exposed to a wide range of risks as people constantly come and go from the premises. The larger the hotel and the more services it offers, the more risks the business faces.
Fortunately, hotel insurance is available to protect business owners from nearly all types of risks.
Here is a look at some of the common risks covered by hotel insurance:
1. Slips, Falls, and Other Injuries
The occasional injury is inevitable in a hotel environment. People of all ages visit hotels, and it is common for injuries to occur, ranging from minor bumps and bruises to more extensive injuries.
If a guest suffers an injury in a hotel, the hotel could be found liable and may be required to pay the guest’s lost wages, medical costs, pain and suffering, and other related expenses.
General liability coverage is an essential policy that protects businesses from third-party injury claims.
2. Theft and Vandalism
Theft and vandalism are quite common in hotels, especially in guest rooms where customers have unsupervised access. There is always a risk that criminals or guests could steal items from rooms or deface property.
Acts of theft and vandalism are typically covered under a commercial property insurance policy. Be sure to carefully review the policy to determine what types of incidents are covered.
Commercial property insurance policies protect against fires, storms, and other perils that cause property damage or loss.
3. Rowdy and Intoxicated Guests
Hotels that sell or serve alcohol will usually encounter the occasional rowdy and intoxicated guest. When under the influence of alcohol, some guests may lash out, resulting in third-party injuries or property damage.
Although an intoxicated guest will often be held responsible for their own actions, the hotel could also be held liable if it sold or served alcohol to the guest.
To protect against this type of risk, consider acquiring liquor liability insurance that covers fights, injuries, DWI accidents, sexual assaults, and more.
4. Data Breaches and Cyber Threats
Like many modern businesses, hotels rely heavily on technology to receive, send and store important guest information. While most hotels have extensive precautions in place to prevent data breaches and other cyber threats, there is always a chance that a cybercriminal could access this data.
A data breach can seriously affect a hotel as these businesses often store guest credit card information. Hotels require cyber liability coverage to protect against data breaches and other online attacks.
What Types of Insurance Do Hotels Need?
Hotel insurance covers more than just guest rooms and the hotel lobby. Many types of insurance policies can provide hotel owners with comprehensive coverage that protects other areas of operations, such as conference centers, golf courses, special event facilities, fitness centers, swimming pools, and spas.
With help from an experienced insurance agency, hotel owners can develop a tailored insurance package that meets their unique needs and budget restrictions. Some of the most important types of insurance for hotels include:
- Commercial General Liability Insurance
- Commercial Property Insurance
- Commercial Auto Insurance
- Equipment Breakdown Insurance
- Workers’ Compensation Insurance
- Cyber Liability Insurance
- Garagekeepers & Non-Owned Liability Insurance
- Liquor Liability Insurance
Some hotels may also require business umbrella liability insurance. With umbrella liability insurance, hotel owners can receive additional coverage in cases where their general liability, property, auto, or other coverage does not fully cover the cost of the insurance claim.
Speak with an insurance professional to determine how much coverage the hotel needs and whether an umbrella liability policy is a good investment.
Request an Insurance Quote Today
Preparing for any type of event that may occur in the hotel or on the premises is critical for the business’s long-term success. Access to the right insurance coverage can save a hotel from financial ruin and ensure guests receive the best possible services.
Atlas Insurance Agency understands the wide array of risks that hotels and other hospitality industry businesses face daily. Protect your livelihood with coverage from Hawaii’s largest insurance agency. Contact Atlas today for an insurance quote.