What Is a Motel Insurance Policy? 

When you are running a motel, you need to have adequate insurance coverage for your operations. Business interruption and equipment breakdown insurance can help you keep your operation running. These types of insurance cover the costs associated with interruptions in your operations, and they can help ensure that your revenue stream stays high enough to cover expenses. You can also get utility interruption insurance, which provides loss compensation if your utilities are interrupted.

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General liability coverage 

If you are running a hotel, you need to get general liability coverage and property insurance for your business. General liability insurance covers the building itself, and property insurance covers property inside the motel, such as beds, refrigerators, and wall art. Property insurance also covers the property of guests, which means that if something happens to one of your guests’ belongings, you’re covered. 

Although general liability is the most important coverage, it isn’t the only type of insurance your motel needs. You’ll also want to get property insurance and commercial property insurance. These policies will protect your business from unforeseen events, including fires and theft. 

Employment practices liability coverage 

If you are considering purchasing workers’ compensation insurance for your motel, make sure you understand the basics of employment practices liability coverage. This type of coverage protects you from lawsuits that allege that you have engaged in unfair employment practices. The policy will pay for defense costs and damages resulting from wrongful termination or discrimination. 

The cost of Employment Practices Liability Insurance will vary depending on the number of employees, type of business, and risk factors. Typically, an EPLI policy reimburses the company for legal costs, judgments, and settlements. However, it does not pay for punitive damages or civil fines. In addition, it will not cover workers’ compensation. 

Non-owned auto liability coverage 

A motel insurance policy does not cover your employees’ personal cars. In these cases, you will want to get non-owned auto liability insurance to cover any damages you cause to another person’s property. This insurance will also pay for any medical costs your employees incur if someone is injured in an accident. 

Getting this coverage is simple. You can add it to your general liability policy if necessary. Non-owned auto coverage is typically added to a general liability policy. Depending on the extent of coverage, it can range from $1,000 per occurrence to $2,000,000 in general aggregate. 

Commercial auto coverage 

While general liability is a key component of motel insurance, it is important to have additional types of insurance as well. For example, property insurance can protect your motel from damage to the property and the contents inside. And don’t forget workers compensation coverage, which covers your employees’ medical costs. 

This type of insurance will cover damages caused by an accident involving a commercial vehicle. It includes medical payments for the injured driver or passenger as well as the costs of hospitalization and rehab. Some policies also cover other losses, such as vandalism, fire, flood, earthquake, and theft. 

Umbrella insurance 

Motel umbrella insurance protects hotels and motels from the financial liability of third-party lawsuits and damage to their property. The hotel industry faces many unique liability risks, including premises liability and product liability. To protect your assets from losses, you can purchase a policy that provides up to $1 million of coverage. 

This insurance covers the building itself and the contents of your business. This can include furniture and supplies. In addition, it covers other people’s property. However, there are limitations. Motel umbrella insurance typically excludes damage caused by intentional acts. You can add endorsements to your policy to cover a wide range of situations.