Compare Insurance Cover for a Bespoke Policy

Running any business requires careful consideration of insurance cover. Adequate cover is one of the top considerations for people in the hospitality industry who run small hotels, guest houses, bed and breakfast accommodations, or hostels.

Insurance is a legal requirement for anyone employing workers. Most hotel businesses need a variety of policies to provide cover against guest injuries, fire, theft, loss of income, and building damage. The choices can be a bit overwhelming, but most insurance companies offer bespoke policies for hotel owners under an ‘Hoteliers Combined’ contract. You must select a minimum number of options to qualify for the special rate, but you may be able to add, subtract, or swap cover to craft a suitable policy for your individual needs.

Essential Hotel Insurance Cover

The following list gives a few examples of cover hotel owners might need.

  1. Employers’ Liability Insurance

    You must have this cover if you have employees, which protects you against claims made by employees injured on the job.

  2. Building Insurance

    Property owners must protect their investment or risk financial ruin. If you have a mortgage, lenders require this type of cover to protect their investment, and they often include a list of potential perils that must be indemnified by insurance cover. You must choose cover that fully protects the property.

  3. Stock, Trade Contents, and Tenant Improvements

    This cover protects against numerous hotel perils such as fire, thefts, floods, and natural disasters. The cover is available for owners and business owners who lease their property. The three sections provide cover for different contingencies.

    • Stock. Stock is defined as materials used in the trade. For hoteliers, this includes guest toiletries, food, wine, or materials you might hold in trust for guests.
    • Trade contents. This area refers to equipment used to furnish the guest rooms and lobby areas. Furniture, appliances, fittings, drapes, signs, and frontage are included.
    • Tenant improvements. This section applies to landlords who rent their property for use as a hotel. The cover protects against tenant modifications that might damage the property.
  4. Public liability

    Public liability policies protect against guest injuries while staying on the property, and this cover is essential for hotel owners. If you do not have this cover and a guest is injured, then you could easily lose your property and face financial ruin, should you be found liable due to negligence.

  5. Loss of money

    Small hotels often handle sums of cash that attract thieves who judge thefts to be relatively easy from small operations.

  6. Business interruption

    This cover could prove critical, but it is often overlooked. If building damage occurs, it could take several months to put right. You could lose your income during that period, which might force you to lose the business.

Building a Bespoke Policy

Putting together the right policy will protect you from many possible dangers. Most insurers offer combined policies that include basic necessities such as liability, building, and contents packages. Optional cover you might need includes some of the following protections for hotel owners.

  • Glass breakage – glass frontage can be expensive to replace.
  • Loss of licence – hotels often serve beer, wine, and liquor, and licence loss could affect income.
  • Tenants’ liability – tenants who lease their hotels could be responsible for building damage caused by guests or modifications they make.

You should compare prices and package options carefully to find the best deal, because insurance rates can vary greatly among carriers.