Why Hotel Insurance Is Important for Your Business?

1. Hospitality Insurance Coverages you don't want to miss out on!

2. What is hospitality insurance? • Hospitality insurance is the insurance package that covers businesses in the hospitality industry. • With more than 100,000 businesses in the hotel and motel industry, and the upscaling hospitality industry, there some other businesses that need hospitality insurance. • Hotels  • Motels  • Resorts  • Casinos Hotels  • Floating Hotels/ Hotel Ships  • Caterers 

3. What risks does this insurance cover? • Dire fires: Businesses with commercial kitchens spend more than $200 million a year on property damage due to grease fires, gas leaks, and faulty wiring. • Drowning incidents: The fifth leading cause of unintentional death for people of all ages is drowning. However, it is the second leading cause of death for children of age group 1 to 14 years.  • Dram shop liability: Despite having a good alcohol management plan, casinos fall victim to damage or bodily injury claims caused by drunk patrons.

4. What policies do businesses in the hospitality industry need?  Here are some common insurance policies that your business will require: • Business Owner’s Policy • Workers Compensation Insurance • Commercial Auto Insurance • Commercial Property Insurance • Commercial General Liability Insurance • Employment Practices Liability Insurance • Cyber Liability Insurance • Commercial Umbrella Insurance • Liquor Liability Insurance  • Pollution Liability Insurance

5. Business Owners Policy • For any business, business owners policy (BOP) is a must. It is usually a combination of: • Business interruption policy • Commercial property • Commercial general liability • It covers: • Business personal property and equipment breakdowns • Loss of income due to damage to the business’ property • Personal and third-party bodily injury

6. Workers Compensation Insurance • Workers compensation insurance makes sure to cover the medical expenses or reimbursement of lost wages to the employees due to an on-the-job accident.    • For example: Your employee cuts his hand with a knife in the kitchen during catering events. Your catering business is liable to pay the medical costs and reimburse the employee for the loss of wages.

7. Commercial Auto Insurance • If your business owns or uses a vehicle for business purposes, commercial auto insuranceis a requirement. • The policy bears the cost of third-party claims on bodily injury and damage of property.   • For example: Hotels usually own vehicles to pick up and drop off their guests while caterers' own vehicles that transport their food. In the event of an accident, the business will be liable for any damage caused to all parties involved.

8. Commercial Property Insurance • Commercial property insurance provides coverage for damages to business-owned properties caused by perils such as- • Vandalism • Fires • Theft • Explosions • Burst pipes  

9. Commercial General Liability Insurance • Commercialgeneral liability insurance (CGLI) covers third-party damages caused by the operation of the business or within the premises of your company.  • The policy covers claims such as- • Bodily injury • Property damage • Defense against legal actions • For example: One of the servers of your catering business breaks a one-of-a-kind vase. This could get your company in a messy lawsuit which is covered by CGLI.

10. Employment Practices Liability Insurance • Employment practices liability insurance (EPLI) covers any claims against the business for illegal practices, including: • Wrongful termination • Sexual harassment • Discrimination

11. Cyber Liability Insurance • From cyber theft to data breaches, cyber liability insurancecovers all risks that come with the usage of technology in a company.   • Hotels, motels, caterers, and casinos depend mainly on technology to keep track of guest information and enter payment details making your business vulnerable to cybercrimes.

12. Commercial Umbrella Insurance • Commercial umbrella insurance extends the liability coverage over the conventional liability policies, such as commercial auto, commercial property, and commercial general liability.   • For example: A guest in your cruise ship falls and suffers from a brain hemorrhage. In this case, an umbrella policy helps in covering the claim if it exceeds the limit of your commercial general liability.   

13. Liquor Liability Insurance  • As a business that has a license to sell alcohol, your business is liable for any damage or injury caused by drunk patrons. • Liquor liability insurance covers your business from such claims. 

14. Pollution Liability Insurance • For environmental risks associated with owning, developing, constructing, and operating a facility, pollution liability insurance covers claims from third parties against bodily injury or property damage.   • The policy covers- • Cost of investigation • Remediation • Business interruption • Defense against legal claims

15. How much will your hotel insurance cost?  The cost of hotel insurance is affected by a few determinants, such as:  • Location  • Type of business  • Size of the premises  • Services  • Number of employees  • Yearly revenue  • Valuation of assets