How Much General Liability Insurance Should a Hotel Have?

The first question you should ask yourself when purchasing general liability insurance for your hotel is how much coverage you need. Although most general liability policies cover a wide range of perils, there may be conditions that are excluded. Discussing these conditions with your insurance agent is vital to ensure that you don’t have any blind spots in your coverage. In general, the average American hotel pays between $350-700 a year for $1 million in liability insurance coverage.

 

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General liability coverage

How much general liability coverage should a hotel carry? The amount of coverage needed varies according to several factors, including construction type, occupancy, protection level, and loss history. In addition, hotel premiums are affected by the type of building, the number of rooms, and any safety features or protocols that have been implemented at the property. Getting a comprehensive insurance policy will allow you to better protect your property against potential loss scenarios and keep your premiums affordable.

Liquor liability coverage

When it comes to alcohol liability insurance, the amount that a hotel needs largely depends on its type of venue. The more alcohol sold in a venue, the higher the premiums will be. For example, a restaurant that is known for its high alcohol sales might be considered a bar, while a nightclub may be considered a nightclub. When considering the amount of coverage, the underwriter will also consider the entertainment that takes place on the premises.

Commercial umbrella insurance

Hotels often face large liability exposure, including product and premises liability. Depending on the type of hotel, it can be beneficial to buy additional layers of umbrella coverage, including higher limits. A hotel should consider the value of its assets when determining how much commercial umbrella insurance it needs. For example, if it serves alcohol and food to guests, it may want to purchase a higher limit than if it is primarily responsible for providing food.

Workers’ compensation coverage

In addition to providing adequate protection against accidents, workers’ compensation insurance for hotels also pays for medical expenses that employees incur. In addition, this type of insurance is required by many states. Hotel employees are exposed to more risk of injury than workers in other types of businesses. The cost of medical treatment and lost wages can be very high if employees are injured while working. Hotel owners should compare the costs of workers’ compensation insurance before choosing a policy.

Foodborne illness coverage

Because of high-profile outbreaks and ongoing media coverage, food-borne illnesses have been brought to the public’s attention. However, the numbers are difficult to quantify. However, hoteliers are still at risk for food contamination-related claims. Food-borne illness claims cost the hospitality industry from $7.7 billion to $23 billion annually. In the Pacific Northwest, for example, there have been several high-profile outbreaks of pathogenic bacteria that have caused food product recalls and restaurant closures. Even financial insolvencies were caused by the outbreaks.

Commercial property coverage

When it comes to protecting the investment you’ve made in your hotel, it’s important to protect it with the right commercial property insurance. Starting with the common coverages is a good place to start, and then customize your insurance policies to cover the specifics of your hotel. Commercial property insurance covers the building and its contents, including beds, furnishings, electronics, and more. You can choose either an actual cash value insurance policy or a replacement cost policy, and both will provide the coverage you need.