Owning a hotel, motel, inn, or bed & breakfast means providing guests with a safe, comfortable stay—but it also comes with unique risks and liabilities. From property damage and guest injuries to business interruptions and cyber threats, hospitality businesses need specialized insurance to safeguard their operations.
At Barnard Donegan Insurance, we offer custom hospitality insurance policies designed to protect your property, employees, guests, and revenue.
✔ Building & Structure Coverage – Protects your hotel, motel, or inn from fire, storms, vandalism, and other property damage. ✔ Guest Room & Facility Coverage – Ensures furniture, appliances, and amenities are covered. ✔ Equipment Breakdown Insurance – Covers HVAC, refrigeration, electrical, and plumbing system failures. ✔ Flood & Earthquake Coverage – Optional protection for properties in high-risk zones.
2. General Liability & Innkeepers’ Legal Liability Insurance
✔ Guest Injury & Slip-and-Fall Coverage – Protects against lawsuits from injuries occurring on hotel property. ✔ Property Damage Liability – Covers damage caused by guests or employees to third-party property. ✔ Innkeepers’ Legal Liability – Protects against claims related to lost, stolen, or damaged guest belongings. ✔ Liquor Liability Insurance – Essential for hotels with bars, restaurants, or event spaces serving alcohol.
3. Business Interruption & Income Loss Protection
✔ Lost Revenue Coverage – Covers income loss due to fires, natural disasters, or other covered events. ✔ Extra Expense Coverage – Helps pay for temporary lodging or relocation expenses if your hotel is closed. ✔ Civil Authority Coverage – Covers revenue loss due to government-mandated shutdowns.
✔ Workers’ Compensation Coverage – Protects employees injured on the job with medical expenses and wage replacement. ✔ Employment Practices Liability (EPLI) – Covers claims of discrimination, wrongful termination, or harassment. ✔ Guest & Employee Assault Coverage – Protects against claims of violence or misconduct on hotel premises.
5. Specialized Coverage for the Hospitality Industry
✔ Valet Parking & Garage Keeper’s Liability – Covers vehicles in your care against theft or damage. ✔ Cyber Liability Insurance – Protects against data breaches, stolen customer credit card information, and online fraud. ✔ Event Liability Insurance – Covers weddings, conferences, and corporate events hosted at your property. ✔ Pest & Bed Bug Coverage – Protects against claims related to infestations that could damage your reputation.
Who Needs Hospitality Insurance?
Our hotel and motel insurance policies are designed for:
✔ Hotels & Motels – Whether franchise-owned or independent, we provide custom coverage. ✔ Boutique Inns & Bed & Breakfasts – Protection for smaller hospitality businesses with unique risks. ✔ Extended-Stay & Resort Properties – Coverage for long-term guest stays and resort facilities. ✔ Hospitality & Travel Businesses – Includes lodging chains, vacation rentals, and timeshares.
Why Choose Barnard Donegan Insurance for Hotel Coverage?
✔ Industry-Specific Protection – Tailored insurance for hotels, motels, inns, and bed & breakfasts. ✔ Affordable & Flexible Policies – Competitive rates for small and large hospitality businesses. ✔ Quick Certificate of Insurance (COI) Issuance – Proof of coverage for contract agreements and licensing. ✔ Dedicated Risk Management – We help reduce risks and prevent costly claims. ✔ 24/7 Claims Support – Ensuring fast response times for urgent incidents.
Get a Free Hotel Insurance Quote Today
Your guests rely on you to provide a safe, comfortable stay—and you should be able to rely on strong insurance protection. With a custom hotel insurance plan, you’ll have peace of mind knowing your property, employees, and revenue are secure.
Hotels typically require several types of coverage, including property insurance, general liability insurance, workers’ compensation, business interruption insurance, cyber liability insurance, and sometimes specialized coverage like liquor liability and employment practices liability insurance (EPLI). The specific coverage will depend on the hotel’s size, location, and services offered.
General liability insurance is essential for hotels because it protects your business from claims related to guest injuries, property damage, or accidents that occur on your premises. Without this coverage, your hotel could face costly lawsuits and settlements that can seriously impact your bottom line.
Property insurance covers the physical assets of your hotel, including the building, furniture, equipment, and inventory. This coverage protects you from financial losses due to events like fire, vandalism, theft, or natural disasters. Property insurance is crucial to ensuring that you can repair or replace damaged assets without disrupting your operations.
Business interruption insurance helps cover lost income and additional expenses if your hotel is forced to close temporarily due to a covered event, such as a fire or natural disaster. For hotels, every day of closure can mean lost bookings and revenue, so this coverage ensures you can recover financially during these disruptions.
Yes, cyber liability insurance is increasingly important for hotels due to the high volume of sensitive guest data (including payment information) processed daily. Cyber insurance protects your hotel from financial losses related to data breaches, ransomware attacks, and other cyber threats, ensuring that your business can recover from digital security incidents.
The amount of insurance your hotel needs depends on several factors, including the size of your property, guest volume, amenities offered, and your geographic location. It’s essential to work with an experienced insurance advisor who can assess your risks and recommend appropriate coverage limits tailored to your business.
If your hotel serves alcohol (through bars, restaurants, or events), you likely need liquor liability insurance. This coverage protects your hotel from claims that arise if a guest becomes intoxicated and causes harm to themselves or others. Many states and jurisdictions require hotels to carry this coverage if alcohol is served on the premises.
Workers’ compensation insurance is required by law in most states and provides coverage for employee injuries or illnesses that occur on the job. For hotels, where staff work in various environments (kitchens, housekeeping, maintenance), this coverage ensures that you can provide medical care and wage replacement for injured employees while protecting your business from lawsuits.
Umbrella insurance provides additional liability coverage above and beyond the limits of your general liability, auto liability, or employer’s liability policies. This is especially beneficial for hotels that host high volumes of guests or provide premium services, as it offers extra protection against large claims that could exceed standard policy limits.
Yes, many insurers offer package policies or allow you to bundle multiple types of coverage (such as property, general liability, and business interruption insurance) to save on premiums. Bundling can streamline your coverage and reduce costs while ensuring you have comprehensive protection for your hotel.
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Frequently Asked Questions
Is hotel insurance worth it?
The worth of hotel insurance is significant. It provides financial protection against unexpected events, such as cancellations or property damage, ensuring peace of mind during your stay. Investing in this coverage can save you from potentially high costs.
Do hotels need insurance?
Hotels need insurance to protect against potential liabilities, property damage, and unforeseen events that can impact operations. Adequate coverage ensures financial security and compliance with regulations, making it essential for business stability and risk management.
Do hotels have insurance for damage?
Hotels typically have insurance policies in place to cover damages to their property. This insurance helps protect them from financial loss due to accidents, natural disasters, or vandalism.
Do hotels offer insurance?
Hotels may offer insurance options, typically in the form of travel insurance or protection plans for guests, covering issues like trip cancellations or lost belongings. It’s advisable to inquire directly with the hotel for specific policies available.
Do hotels have insurance?
Hotels typically carry insurance to protect against various risks, including property damage, liability claims, and business interruptions. This coverage is essential for financial security and compliance with industry standards.
Do hotels have insurance for stolen items?
Hotels typically do not have insurance that covers guests' stolen items, as they are not liable for personal belongings. It's advisable for guests to use in-room safes or consider personal insurance for added protection.
How does hotel insurance differ from Airbnb?
Hotel insurance and Airbnb insurance differ primarily in their coverage specifics; hotel insurance typically protects commercial properties and liability risks, while Airbnb insurance focuses on hosts, covering personal property and guest-related liabilities specific to short-term rentals.
Does travel insurance cover hotel costs?
Travel insurance may cover hotel costs under specific circumstances, such as trip cancellations or interruptions due to covered events. Always check your policy details to understand the coverage options related to accommodation expenses.
Do you need hotel insurance?
Hotel insurance is essential to protect your property and assets against unexpected events, liability claims, or damage. It provides peace of mind and financial security for your business, making it a vital consideration for hotel owners.
What are the benefits of hotel insurance?
The benefits of hotel insurance include financial protection against property damage, liability claims, and business interruptions, ensuring that your hotel can maintain operations and safeguard its assets in unforeseen circumstances.
How much does hotel insurance typically cost?
The typical cost of hotel insurance varies based on factors such as location, coverage amount, and specific risks, usually ranging from a few hundred to several thousand dollars annually. It's best to obtain quotes tailored to your hotel's needs for an accurate estimate.
What does hotel insurance usually cover?
Hotel insurance typically covers property damage, liability claims, guest injuries, theft of guest belongings, and loss of income due to business interruption. These protections help safeguard hotel operations and finances.
Can hotels operate without insurance coverage?
Hotels can technically operate without insurance coverage, but this is highly inadvisable. The absence of insurance exposes hotels to significant financial risks from potential liabilities, property damage, or unforeseen incidents, jeopardizing their long-term viability.
How do I choose hotel insurance?
Choosing hotel insurance involves evaluating your specific needs, comparing policies from different providers, and considering coverage options such as liability, property damage, and business interruption to ensure comprehensive protection.
What risks does hotel insurance protect against?
Hotel insurance protects against various risks, including property damage, liability claims, theft, and business interruption. It ensures that hotels are covered for unforeseen events that may affect their operations and finances.
Is hotel insurance required by law?
Hotel insurance is not universally required by law; however, certain regulations may vary by location. It's advisable for hotel owners to obtain it for liability protection and to meet any local licensing requirements.
How can hotel insurance minimize financial loss?
Hotel insurance minimizes financial loss by providing coverage for unforeseen events such as property damage, liability claims, and business interruptions. This financial protection enables hotels to recover quickly, ensuring stability and continuity in operations.
What happens if a hotel lacks insurance?
Hotels without insurance risk significant financial loss from unexpected events, such as property damage or liability claims. Without coverage, these costs would need to be covered out of pocket, jeopardizing the hotel’s operations and financial stability.
Do boutique hotels require special insurance?
Boutique hotels often require special insurance to address their unique risks and liabilities. Standard insurance may not cover specific aspects such as specialized amenities, unique architecture, or personalized services, making tailored coverage essential for comprehensive protection.
Are there different types of hotel insurance?
Different types of hotel insurance include general liability, property coverage, and business interruption insurance. Each type addresses specific risks, helping hotels protect against various liabilities and potential losses.
How do claims work for hotel insurance?
The process of claiming hotel insurance involves notifying your insurer about the incident, submitting necessary documentation, and providing evidence of the loss or damage. The insurer will then assess your claim and determine compensation based on your policy coverage.
Can hotels get group insurance policies?
Hotels can obtain group insurance policies tailored to their needs. These policies often offer cost-effective coverage options for multiple properties, helping to streamline management and reduce overall insurance expenses.
What is the process for filing hotel insurance claims?
The process for filing hotel insurance claims involves notifying your insurance provider after an incident, filling out a claims form, providing necessary documentation like receipts and photos, and cooperating with the insurer's investigation to reach a resolution.
Are there discounts for reducing hotel insurance coverage?
Discounts may be available for reducing hotel insurance coverage, depending on the insurance provider and the specific terms of your policy. It's best to consult with your insurer to explore potential savings.
How often should hotels review their insurance?
Hotels should regularly review their insurance coverage, ideally annually, to ensure it meets changing needs, industry standards, and any new risks. Frequent assessments help maintain adequate protection and avoid gaps in coverage.
What exclusions are common in hotel insurance policies?
Common exclusions in hotel insurance policies include damages from natural disasters, acts of terrorism, and employee dishonesty. Additionally, liability for injuries resulting from alcohol or illegal activities may also be excluded.
How does location impact hotel insurance rates?
Location significantly impacts hotel insurance rates. Factors such as crime rates, weather hazards, and local regulations affect risk assessments, which in turn influence insurance premiums for hotels.
Is liability insurance included in hotel insurance?
Liability insurance is typically a component of hotel insurance policies. However, it's essential to review the specific terms of your policy, as coverage can vary between providers.
Does hotel insurance cover employee injuries?
Hotel insurance does not typically cover employee injuries. Instead, these injuries are usually addressed under workers' compensation insurance, which provides coverage for medical expenses and lost wages for employees injured on the job.
Can a hotel insure against natural disasters?
Hotels can obtain insurance coverage for natural disasters. This type of policy typically helps protect against financial losses resulting from events such as hurricanes, earthquakes, or floods, ensuring business continuity in challenging situations.
