How to Figure Out If Hotel Has Insurance

It is easy to get caught up in the convenience of a cheap insurance policy, but insurance brokers warn that this is a huge mistake. A hotel’s insurance coverage should be adequate to cover any eventuality that could occur on its premises. Innkeeper’s liability, cyber liability, and liquor liability are just a few of the coverage types that a hotel should consider. But how can you tell if a hotel is adequately covered?

 

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Innkeeper’s Liability

If you have been looking at the hotel insurance market, you may have noticed that the COVID-19 pandemic has had a profound impact. Many companies have stopped quoting business, while others have completely exited the hotel insurance market altogether. The resulting market shift has caused price increases and deductibles to soar, and coverage terms to become more restrictive. This shift occurred at a time when the hospitality industry was already struggling to survive the economic impact of the disease. Regardless of the reason, hotel owners make substantial investments in their property, and they buy insurance to cover the risks associated with that investment.

Commercial Property Insurance protects the hotel building, as well as any property inside or outside the building. This type of coverage includes damage caused by vandalism and theft. Garagekeepers’ insurance covers the cars that hotel valet services park on their premises. General property insurance protects the hotel’s buildings and structures from covered perils. Cyber liability insurance protects hotel employees from liability arising from cybercrime, including theft and identity theft.

Liquor liability

One thing to look for when deciding whether or not to purchase hotel liquor liability insurance is the number of insured alcoholic beverages served. Most hotels have at least one such policy. This insurance protects against the financial costs of lawsuits resulting from intoxicated guests’ actions. General liability coverage may not cover such claims, and liquor liability insurance is an essential part of a hotel’s overall risk management strategy.

You can also find cheap liquor liability insurance through an insurance marketplace. These marketplaces let you enter your business information and receive quotes from several insurance providers. Compare quotes to decide which one will best protect your business. If your hotel doesn’t have liquor liability insurance, you can also contact an independent insurance agent in your area. These agents specialize in this type of insurance and can help you find a policy that meets your needs and budget.

Business interruption insurance

If your hotel is closed for an extended period due to a natural disaster, it is essential to know whether it has business interruption insurance. Business interruption insurance, also known as business income insurance, covers the loss of revenue resulting from a disaster. This coverage will help you recover from a disaster and reopen your hotel as soon as possible. The best way to determine if your hotel has this type of insurance is to contact your broker.

If you are looking for business interruption insurance for your hotel, you’ll find it in the hotel’s terms and conditions. Standard policies do not cover losses resulting from a pandemic, which can affect all businesses at once. This is because insurers learned from the SARS epidemic in 2003 and now have exclusion for pandemics and epidemics. So, make sure to check the policy’s exclusions and conditions.

Cyber liability

As a hotel owner, you may not think that you need cyber liability insurance for your property, but you may be surprised to learn that many of them do not. There are several ways to create a liability in the hospitality industry, including complimentary wine tasting, Manager’s Happy Hour, and even the gifting of champagne with a honeymoon suite. You also may not know that hotels are heavily online today, with most operating on computer networks, as well as having lively social media accounts.

As the hospitality industry uses technology to keep track of guest details, accounts, and payment details, it is no surprise that cybercriminals are increasingly sophisticated. Even small, franchised hotels are victims of bad actors who are trying to steal credit card details or other sensitive information. Even general liability policies don’t cover cyber crimes and privacy events, and some even exclude losses incurred from the internet and computer systems. However, cyber liability insurance is specifically designed for hotel operators and can be bundled with conventional liability insurance.