How Much Does Hotel Insurance Cost? 

One of the first questions that you will have when purchasing hotel insurance is “How much will it cost?” The price will depend on many factors, including the type of hotel, its age, and its construction. A small, old inn on the seashore might be covered for $5,000 a year, whereas a new high-rise hotel may cost more than $1 million a year. In addition to age, the construction type of the hotel can also affect the insurance cost. 

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General liability 

A typical hotel in the United States spends between $350-$700 per year for general liability coverage of $1 million. This policy covers many common risks. Certain situations, however, may not be covered, so it is important to discuss specific details with your agent. However, general liability hotel insurance is an essential part of a hotel owner’s policy. Its additional features include business interruption insurance, which can save you a bundle. 

Liquor liability 

The answer to the question “How much does liquor liability hotel insurance cost” depends on several factors. First of all, the higher the alcohol sales are, the higher the premium will be. This is because selling alcohol late at night is riskier and the insurer will raise the premium accordingly. Another factor to consider is the type of establishment. Dinner theaters and bars that sell only small amounts of alcohol will typically pay a lower premium – around $900 per year. 

Employers liability 

When it comes to calculating your Employers liability hotel insurance costs, keep in mind that each number represents a variable, so assign each a variable that can be manipulated. The simplest way to calculate this is to take the rate of your hotel and multiply it by P+F/1-V+C. You’ll then know exactly what your insurance premium will be. In addition to liability insurance, you should also take out worker’s compensation insurance. This is mandatory in most states and will cover compensation and legal costs for injuries or damages caused to employees. 

Commercial auto 

In addition to the basic liability insurance, a hotel will also need a special type of property insurance. This type of insurance covers the buildings and their contents and also extends to things like vehicles. It also pays for medical payments in case of an accident and reimburses the property owner if someone is injured on their property. A hotel must also have a liability insurance policy for its vehicles, as it will need to cover liability arising from the use of these vehicles, as well as damage to the cars. 

Commercial umbrella 

When it comes to the cost of commercial umbrella hotel insurance, the more rooms you have, the lower the premium will be. The price of the policy is based on the number of rooms, their amenities, and the pricing of your underlying General Liability policy. The price of commercial auto insurance depends on the type of vehicle you operate. A vehicle used for guest transport will cost more than a standard-service vehicle. The liability exposure associated with passenger transport is high in hotels. 

Taxes on hotel insurance 

Aside from your property insurance, you will also have to pay sales tax on the room rates of your hotel. The rate of your hotel room is the amount you charge to the customer for the right to use it. Generally, this tax is collected by hotel operators and re-marketers. You will find more information about the rules of hotel occupancy in the Tax Bulletin. If you are concerned about your hotel insurance coverage, you should contact the local taxing authority.