Does the Hotel Pay For Guest Hotel Insurance? 

A common question is, “Does the hotel pay for guest hotel insurance?” You’ll find that the answer depends on the type of insurance that the hotel has. General liability insurance usually covers lawsuits and medical care for guests and is often included with hotel stays. Public liability and Workers’ compensation are two other types of insurance that the hotel should consider. 

(Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides. To know more, contact us today!)

Innkeeper’s Liability 

If you are staying at a guest hotel and you lose something, is the innkeeper responsible? While the Innkeeper’s Liability Act of 1968 no longer applies, the Fair Trading Act of 1987 does. Nevertheless, it is important to be protected against theft and loss. This insurance coverage is not limited to lost items but may also include other items. The hotel may also limit the amount of liability coverage it provides to cover items lost or stolen from a guest’s room. 

Workers’ Compensation 

The question of whether to carry Workers’ Compensation insurance on hotel employees has several answers. The industry faces several unique risks and exposures, with room attendants and housekeeping personnel having the highest accident rates. While 3.1 percent of all recordable cases in the hospitality industry are related to hotel workers, the rate of injury in the industry is much higher. Fortunately, many hotel insurance companies offer business owner policies that bundle workers’ compensation coverage with their other insurance coverage. 

Public Liability 

When a guest stays at a hotel, they must have proper liability insurance. Liability insurance covers the costs of medical care, pain and suffering, lost wages, and legal fees. It also protects the hotel from lawsuits for covered third-party injuries. Intoxicated guests are at a higher risk of injury and other problems. General liability insurance will cover these costs, as well as lawsuit defense. 

Umbrella Insurance 

Are you unsure about how to buy umbrella liability insurance for hotels? The first step in purchasing hotel umbrella liability insurance is to determine how much coverage you need. The amount of coverage will depend on the number of assets your hotel has. Generally, hotels carry at least $1 million worth of liability coverage. Additional layers may be needed for increased protection. If your hotel serves alcohol and serves food, consider purchasing higher limits of liability insurance.