Hotel insurance and guest house insurance usually offer the same type of
coverage, although not always to the same full extent. The key points
are the same as required under most business insurance policies,
although the wording and limitations will usually vary according to the
type of business and the industry in which your business operates. All
businesses require an insurance policy that will cover buildings and
contents, liability, both public liability and employers liability, and a
'business interruption' element to the policy.
The most common purchasers of a hotel insurance policy include
businesses such as hotels, motels, and hostels, and bed and breakfast or
guest house operations.
As mentioned above, the three key features of a hotel insurance policy are:
Buildings and contents insurance to protect your business in the event
of fire, flooding, theft, break-in and resulting damages.
Public and employers liability in case of injury to employees or third parties whilst on your property.
Business interruption, a general term covering incidents that cause loss
of income, such as electricity failure or gas leak, fire or flood
damage, or injury, illness, or death of owners. This last element will
help ensure that even in worst case scenarios, your business can still
operate effectively, whereas otherwise there may be cause to shut down.
There are, however, a few key differences with the coverage allowances
with hotel insurance as opposed to many general business insurance
policies with these same features. For example, a hotel insurance policy
may include coverage for damages such as a broken window, fixtures and
fittings, landscaped garden property, and hotel frontages including
signs and external blinds. As these are all elements that may hold a
significant impact on business operation with regard to reputation, it
is important that the upkeep of such items be maintained, and damages
repaired promptly.
Other specific benefits that may be associated with a hotel insurance
policy include coverage for loss of metered water; theft of keys, to
include having the locks changed to prevent unauthorised access; loss of
money both in and out of business hours and from sources such as
vending or gaming machines as applicable; and loss or damage to outside
equipment, such as outdoor lighting or heating appliances and picnic
tables or other outdoor seating arrangement.
There may also be the opportunity to increase coverage of loss of stock
during the primary season, an increase in coverage of both public
liability and employers liability in particular for situations of
outdoor catering. This additional coverage will also include protection
against damage to your equipment, and to property of both guests and
employees.
You should also ensure that your hotel insurance policy will cover loss
or damage to the personal effects of your guests. It is also possible to
select a hotel of guest house insurance policy that includes the
receipt of equivalent rental or tenancy payments in the event of damages
severe enough to prevent possible tenancy.
When choosing the most suitable hotel or guest house insurance policy
for your particular business, examine the offerings of coverage with
regard to business interruption protection within your policy duration.
This will ensure that should a number of different possibilities crop
up, your business can remain in operation. These include vermin and
other pest issues, loss of accounts receivable (i.e. when guests don't
pay up), denial of access, all the way to notifiable illness or death,
to include murder or suicide. While there may be one or two items on
this list that you may not want to consider, it can be reassuring to
know that the event is covered.
Comprehensive hotel insurance or guest house insurance is critical to
the survival of a hospitality business, and is reassuring for the mental
and emotional concerns of anyone running a business providing guest
accommodation. If your business includes the provision of meals and
beverages, particularly to customers who are not also purchasing nights
of accommodation, you may need additional cafe insurance; check the
terms of your selected insurance policy thoroughly to ensure it provides
adequate coverage to meet all the requirements of your business.
by: Kathryn Dawson
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