What Insurance Does a Hotel Need? - A brief
guide to hotel insurance
can be frustrating so this short guide is designed to help hotel owners
understand what insurance their business may require. However, bear in mind
that this is only a generalisation and you should speak to an independent
insurance broker for more details assistance.
Buildings insurance – If you own the
property this can cover against damage to the structure. If you are only a
tenant you can insure against damage to any improvements you have made. Check
whether there is cover for subsidence or terrorism as these often have to be
requested separately. You should also consider insuring what is in your grounds
such as outbuildings, swimming pools and playing surfaces.
Contents & Equipment Insurance –
this should cover the contents of your hotel. You should specify particularly
expensive items, items kept outside, things that may be removed from the hotel,
alcohol, temperature controlled stock, money and electronic equipment. If you
have seasonal fluctuations you can allow for this. Cover can be extended to
include property belonging to guests and staff.
Public Liability Insurance – this is
designed to provide cover should a member of the public suffer an injury or if
their property is damaged. It is amazing how many members of the public make
claims against the hospitality trade for trips and slips. If your hotel has
facilities or activities that are in addition to the normal food and
accommodation you should advise your insurer, for example health & fitness
facilities, golf course, children’s play area, live music, etc.,
Products Liability – this can be called
upon if you supply something to a member of the public that causes injury or
Employers Liability Insurance – this is
a legal requirement and should cover you and your business if an employee
suffers an injury, including part time and seasonal staff.
Business Interruption Insurance – If your
hotel suffers a claim for theft or damage you may then suffer a reduction in
income. Business interruption insurance will cover the lost income. You should
also discuss a range of extensions that are suitable to the hospitality injury
such as lost income following power cuts.
Engineering – This can include the
statutory inspection of lifts, boilers, air conditioning, etc and costs and
expenses should equipment break down.
Personal Accident & Illness Insurance
– This will pay a financial benefit to the hotel if an employee is injured or
ill and unable to work.
Cyber Liability – This can cover costs
& expenses relating to losses or disruption of your own or third party data
following a malicious or accidental information security incident.
Legal Expenses – provides legal advice
and defence costs for a range of legal situations and disputes.
just some of the types of insurance available for most Hotels, you may also
want to consider Directors & Officers, Treatment Risks, Prize Indemnity,
Cancellation, Loss Recovery and others. For independent advice call Sutcliffe
& Co Insurance Brokers on 01905 21681 or email [email protected]