Hotel and Guest House insurance
Whether you’re running a charming little boutique hotel with just a handful of rooms or your complex is part of an international chain of hotels, insurance to act as a risk transfer, could be key to the success of your hospitality business, should the unforeseen happen. Property insurance is a sensible precaution, but more important is all encompassing hotel specific insurance policy that protects your business against a wide range of potential problems.
From personal injury claims to flood and fire damage, fraud, mandatory employer’s liability to insurance for goods held in trust, making sure your commercial cover is tailored to your specific needs is the most economical and practical way of doing things. And that’s where we can help.
Business Insurance Service – your insurance partner for better business
At Business Insurance Service, we specialise in commercial insurance for businesses throughout a wide range of sectors, including the hospitality industry. We don’t just understand insurance – we understand your business too. That’s why our specially trained and fully accredited brokers work with you to create a bespoke package of cover that is specifically designed to meet your needs.
How do I know what insurance to get?
The easiest way to work out exactly what you need (and just as importantly, what you don’t) is to carry out a commercial risk assessment. Break down your business into sections, assess what potential risks are involved, and work out what kind of insurance you need to protect yourself financially from the consequences. Please contact us should you require templates for your general and fire risk assessments, or any other support with your risk management documents.
At Business Insurance Service, we categorise our products into two distinct groups: core insurance and optional extras.
Core insurance covers those policies that every hotel should have in place. These include mandatory insurance requirements such as Employer’s Liability, and those must-haves to protect you and your business against financial impact such as:
- Public Liability Insurance – this is essential, protects you against the financial cost of claims for personal injury or damage to private property.
- Commercial building and contents insurance – bear in mind that standard building and contents cover will not cover commercial premises so you will need to talk to your broker to find the right kind of commercial cover.
Optional extras are those bespoke policy additions that cover everything from deterioration of stock, goods in transit, through to motor liability for hotels that run a valet parking, chauffeur, or airport shuttle service. For hotels that have valuable works of art or antiques on display in either the lobby, throughout the hotel, or in the rooms themselves, specialist art insurance may be worth adding to your commercial hotel insurance portfolio.
- Business interruption – if you cannot open or operate your business as normal, it will have an impact on your cash flow. Business interruption cover makes sure that if even if the guests can’t check-in, you can still cover your everyday expenses such as bills, running costs and wages.
- Guest property cover – this provides you with financial cover if a guest’s property is lost, stolen or damaged. It also demonstrates to your guests that you take their well-being and the safety of their property seriously, so not only is this a smart financial decision, but it can help to enhance your business reputation too.
Common Exposures in the Hotel and Guest House Sector
Owning and operating a hotel or guest house can be a rewarding endeavour. However, hotel operators have to manage numerous exposures related to lodging, and many offer amenities—including pools, exercise facilities, bars and restaurants—that can dramatically increase the number of insurable risks. The list below provides an overview of these hotel risks and more, helping you identify potential blind spots in your risk management and insurance programmes.
Due to the volume of valuable items and equipment found in hotels and guest houses (eg bedding, furniture and decorative artwork), property exposures in hotels are numerous. Complicating matters, property damage can be caused by a variety of factors, including equipment failures, plumbing issues, poor wiring, natural disasters, guests, employees and other third parties. What’s more, water damage and fires have the potential to affect multiple rooms and storeys, increasing costs and interruptions for your business.
Depending on their size, hotels or guest houses may have to manage the safety of hundreds of employees and guests on a regular basis. Because of the high number of individuals entering and exiting your hotel, public liability exposures are significant and, when injuries occur at your business, you could be held responsible. Accidents related to slips, trips, falls, exercise equipment, swimming pools, balconies and unauthorised access to your building are common and major sources of concern. Something as simple as a wet floor or an uneven surface can lead to costly insurance claims following an incident.
If your hotel has an on-site restaurant, gift shop or offers room service, food and products liability can be a serious concern. The potential for food poisoning, contamination, injury, spoilage and allergic reactions is ever present, making continued guest safety a challenge. In the event that one of your guests becomes ill due to your food, or accidently ingests a foreign object found in one of your menu items or vending machines, your hotel could face legal ramifications and suffer irreversible reputational damage. What’s more, hotel owners must account for the potential danger of gift shop items.
The hotel and guest house industry is a common target for cyber-criminals, as these businesses often store sensitive customer data (eg names, addresses and payment information). In addition, employees who are improperly trained on computer and data safety could put your organisation at risk for ransomware, viruses, phishing scams and malware. Compounding your exposures, many hotels offer guest wi-fi that—if improperly secured—can put you and your guests at risk of an attack.
How to get the most from your insurance
While comparison sites such as ours, are good for simple, straight forward insurance products, they often only provide limited information with regards to other options available and nor can they negotiate on the cover offered with insurers, like our brokers can. At Business Insurance Service, we will do the searching for you, presenting you with a selection of relevant and commercially-focused insurance packages that are specifically tailored to your business, and your budget.
Our brokers are all experienced in working with commercial customers like you. They’ll listen to your needs, work through the specifics with you, and then present you with a selection of options that are custom-made to serve the needs of the hospitality industry. The final choice is always yours, and you’ll be able to go through all of the options at your leisure, with no ‘hard sell’ from us.
A fully accredited service delivered by professional brokers
We use our position as one of the UK’s most trusted brokerages to find you competitive quotes from the UK’s top commercial insurance providers. We aim to help you put together a unique package of hotel insurance cover that’s right for you, your hotel, and your budget. We can cater for single operations such as Guest Houses, B&Bs, boutique hotels and small, family-run hotels, through to larger hospitality organisations with multiple hotels both at home and abroad.
We’re excited to provide MyWave Connect to our clients. This resource portal is your one-stop source for not just insurance but all your risk management, compliance, safety, well-being and other business needs.