Hotel or Motel Insurance

Special insurance programs are available to those who provide lodging. The services offered by the facility dictate the kinds of insurance they will need. As a general rule, the biggest exposure to loss is the injury of customers. Since there is a risk of a large number of people being severely injured (fire in rooms), very high limits of insurance are recommended. The primary liability coverage is found in the commercial liability insurance policy. If the facility serves food and or beverage, the commercial liability insurance policy also provides coverage for premises and product losses (we have seen programs offered without this important coverage). 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. When facilities serve alcohol, they sometimes employ security personnel. This can create another exposure that can be difficult to insure. This exposure arises when someone is injured while the security personnel must physically remove someone from the premises for the safety for others. This can be a difficult exposure to insure.

High limits of liability insurance are available under an umbrella liability policy.

A liability that is unique to Hotel and Motel operations is holding valuables for quests. The form of insurance that is offered to cover this exposure is called inn keepers legal liability insurance. It specifically covers the property of others that has been entrusted to you. It does not cover loss that stems from employees stealing guests property. This is covered by an employee dishonesty bond or an employee dishonesty policy.

Anderson Insurance Agency has been insuring the hospitality Industry for almost 40 years. We represent some of the most respected insurance companies that offer special insurance programs for hotels and motels. Click here to request a quote or click here to contact us.

commercial property insurance is needed to cover the buildings and their contents and business Interruption losses.

Many facilities have mobile equipment for maintenance of the premises (lifts, fork lifts, lawn maintenance equipment, etc). An inland marine insurance policy can cover the loss of this type of equipment. If any of the equipment crosses public roads or has a license plate, separate liability insurance may be needed.

commercial automobile insurance is almost always needed. Even if the facility does not own autos, someone may use their auto on behalf of the facility and that, in itself, generates the need for automobile insurance.

If the facility parks cars or offers storage of vehicles, another form of insurance called Garage Keepers Legal liability is needed to cover losses to customers cars that have been left in your care.

If you have employees you will need workers compensation insurance to comply with the legal requirement of the workers compensation law.

If you offer any recreational activities (boating, sailing, jet skiing, etc) separate coverage will be needed. Your workers compensation insurance needs can also change based on these recreational activities.

Flood insurance is needed if the facility is located in any area subject to flooding.

Employers should consider purchasing employment practices liability insurance to cover them for 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. This policy will pay the cost of defending an alleged wrongful act. That benefit in itself, makes this a very valuable insurance policy.

If you offer any benefit plans to your employees you should consider purchasing employee benefits liability insurance.

You may have an exposure to pollution. This exposure can only be assessed after a careful review of your operations. In many cases, coverage will not be available for this risk. The only option may be to implement a program to minimize the risk as you cannot completely avoid the risk and run a business. Liability coverage is readily available for underground and above ground storage tanks. Site pollution insurance may be available depending on your operations and exposures.

Anderson Insurance Agency has been insuring the hospitality Industry for almost 40 years. We represent some of the most respected insurance companies that offer special insurance programs for Hotels and Motels. Click here to request a quote or click here to contact us.

This outline is offered as a general description of the kinds of insurance that can be included in an insurance program. It is not intended to replace a comprehensive and personalized insurance recommendation, which can only be offered after a thorough analysis of particular individuals or businesses operations.