If you own or operate a B & B, you may call yourself an innkeeper or a B & B owner. But, when looking at insurance options, you will undoubtedly hear two different things. As the owner of a bed and breakfast or Inn, it’s important you understand the differences.
So, what’s the difference, and which one do you need?
Is Innkeeper Insurance Business The Same As B&B Liability Insurance?
Before we discuss insurance programs, let’s first look at the differences between a bed & breakfast and an Inn. The hospitality industry is smaller than you think, and you will receive two different answers depending on who you speak with. Some say, “yes, there’s a difference,” and some say, “no difference at all.”
Generally, most bed & breakfasts have 1-5 bedrooms for guests, are historic properties, and are in historic areas. They always serve breakfast; typically, it’s homecooked, hence the second ‘B’ in B&B!
Bed and breakfast owners almost always live on-site and are very knowledgeable about the area. Each bed and breakfast has its own personality.
A typical Inn or Country Inn would be larger in size, offering 8+ rooms, and have a dining hall or area not included in the room price. The dining area would offer not only breakfast but dinner as well.
Inns also tend to have more amenities than bed & breakfasts, such as event planning, equine, and local tours and resemble something closer to a boutique hotel experience. Inns typically have an Innkeeper and additional staff outside the ownership. It’s common for owners to live both onsite and offsite at an Inn.
By nature, a bed & breakfast and Inn are very similar but do have three key differences. The number of rooms, the food served, and amenities.
Innkeepers Insurance services and a bed & breakfast policy are fundamentally the same product at their core but can have big differences when it comes to add-ons.
The core is commercial property and liability.
Both operators need comprehensive ‘all-risk’ or special-form property for the building(s) itself and the contents or ‘stuff’ inside of them. This would include coverages such as fire, wind, hail, water damage, vandalism, theft, and more.
Both types of owners earn an income from their properties, so income protection is needed for both. In a covered claim, such as a fire, the operation shuts down to make repairs, resulting in lost income. Not all business income is created equal. Ensure you understand the ‘actual loss sustained’ and time limits involved.
What’s The Definition?
Regarding food and alcohol, both would need foodborne illness and liquor liability if alcohol is served or sold.
Differences begin to occur when we look into the finer details of the operation, such as employees, vehicles, and potential amenities offered, such as horseback riding.
Most hospitality companies have employees such as maids or cooks, so workers’ compensation is needed. Commercial auto protection should be purchased if the Inn has vehicles such as a van to shuttle visitors.
Often overlooked at both a bed & breakfast and an in is personal liability, which is different from commercial general liability for the actual company. If the bed & breakfast owner lives onsite and considers the bed & breakfast their primary residence, then personal liability is important loss or damage to guest property, as the owners would not be insured with their personal homeowners’ insurance.
Are You an Innkeeper Business Property Owner? Call Us To Get A Quote Today!
Whether you identify as a bed & breakfast or an Inn, being insured can get complicated quickly. The best thing to do is find a broker with the experience to ask the right questions and identify potential gaps in coverage.
We encourage you to reach out to Wister as we can walk you through Bed & Breakfast Insurance
policy vs innkeeper’s liability insurance.
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