Bed and Breakfast Umbrella Insurance – What Does it Cover? 

If you own a bed and breakfast or country inn, you have a lot to protect. In this article, you’ll learn about Contents insurance, Guest effects insurance, and Innkeeper’s liability insurance. With the right coverage, you can protect your guests, yourself, and your property. Whether you’re worried about liability or want to protect your bed and breakfast from loss, Insurance Works can help.

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Contents insurance 

Assuming that you plan to open a bed and breakfast, you may need a variety of business insurance policies. Obtaining business insurance is essential to protecting your property and your employees from loss. In addition to ensuring your financial security, this type of policy also protects you from potential legal costs. You should talk to an independent insurance agent about what coverage is right for your particular business needs. An independent insurance agent will shop around for the best possible price and coverage for your bed and breakfast. 

While standard homeowners policies will cover damage to your property, a bed and breakfast may require specialized coverage. In such cases, a comprehensive policy with specialized coverage is needed. Fortunately, there are various insurance options available, including umbrella policies, which offer extra protection. Moreover, you may wish to take precautions to prevent unwanted visitors from causing damage to your property. A basic approach to property protection is to secure your rental property. 

Uninsured/underinsured motorist coverage 

Bed and breakfast owners should purchase uninsured/underinsured motorist (UM) coverage in their bed and breakfast umbrella insurance policies. Underinsured/UM coverage allows a person who has been injured in an accident to sue the at-fault driver for up to $1 million in medical expenses. Underinsured/UM coverage is inexpensive, costing only about $500 per year. The added coverage can be very helpful when needed. 

For most businesses, it is necessary to purchase uninsured/underinsured motorist protection for the same reasons they purchase auto insurance: to protect their property and income. The uninsured/UM coverage is a necessity because one out of every seven drivers is driving without insurance. In addition, underinsured motorist coverage protects businesses from liability lawsuits from strangers. 

Guest effects insurance 

Bed and breakfast insurance provides additional protection for your property, employees, and guests. When considering a policy, be sure to speak with a reputable commercial insurance agent to determine the proper coverage and premiums. Having a business is not without risk, and unforeseen events or lawsuits can devastate your business in a matter of days. Be sure to secure your property to avoid uninvited guests. 

Checking your homeowner’s insurance coverage is a good idea before inviting paying guests into your home. However, before you begin inviting paying guests into your property, you should also consider a separate umbrella liability policy. Under an umbrella liability policy, the policy kicks in once your underlying policy has reached its limit, usually in increments of $1 million. The added $1 million in liability coverage may only cost a few hundred dollars per year. 

Innkeeper’s Liability Insurance 

Before purchasing innkeeper’s liability insurance for bed and brunch, it is imperative that you fully understand the differences between the two. These insurance policies are essentially the same but they contain different add-on coverages. Generally, they cover both the building and its contents. Nonetheless, if you intend to sell food and beverages, you would also need liquor liability insurance. Therefore, you should compare the prices and features of both insurance types. 

The best policy will meet your specific needs. Be sure to note any additional risks you may have on your property. This is an essential detail that will help your insurance company tailor your policy to your specific business. You should make sure to note this on your insurance policy, as failing to do so may be interpreted as non-disclosure, which is one of the most common reasons for insurance claims to be denied. Standard domestic style policies are not sufficient because they do not address the commercial aspects of running a Bed & Breakfast.