It takes a lot of effort and planning to look after your guests so that everything runs properly and they have a great time. Given your financial commitment to your company, it only makes sense to appropriately safeguard it. Hotel insurance is usually a collection of different coverages that protect you from the many hazards that come with running a business. Employee errors, disruptive guest behaviour, accident or property damage, reputational concerns, equipmentbreakdownsn, food contamination, and weather-related occurrences or natural disasters can all put your firm under financial strain. Continue reading to learn more about travel insurance, hotel cancellation, brokers, and all you need to know.
What is Hotel Insurance?
A quick guide to hotel and guesthouse insurance. We go over the typical features, exclusions, and optional coverages that come with this form of company insurance. From public liability to guest contents insurance, as well as how to ensure that your pools, gyms, and other amenities are protected, we’ve got you covered.
There are three basic components to a hotel’s operation. The first is your property/premises, followed by your employees and visitors, and lastly, your revenue. A hotel insurance coverage should prioritise keeping these three items safe.
Buildings and contents insurance protects your property, while public and employer’s liability insurance protects you if someone is on your premises. There’s also business interruption insurance to protect the money you make from your company. Everything else becomes much more dependent on the many requirements and services you may provide after that.
What is the difference between a hotel and guesthouse?
A commercial hotel is often an establishment that offers lodging to visitors. The rooms are usually equipped with an en-suite bathroom, and there is a separate dining area that serves daily breakfasts and dinner most evenings. Typically, hotels provide 24-hour service, with a receptionist or night porter available to assist at any time.
Guesthouses are more of a “full-time” business than B&Bs, but they don’t have 24-hour reception desks like hotels. Unlike most B&Bs, they are normally VAT-registered, offer meals, and have alcohol licences. Guest homes usually have fewer than 15 rooms accessible as a rule of thumb.
Do I need hotel insurance?
The plain truth is that no two hotels are alike. The number of rooms, turnover, staff members, cuisine supplied, building type, any events the hotel hosts, and any other services they provide all have an impact on the level of risk and, as a result, the level of coverage.
Hotel insurance is developed expressly to cover these hazards. If you have a vacation home or second home that you rent out on a short-term basis. You will almost certainly need insurance tailored to your individual needs.
What does hotel insurance cover?
#1. Public liability
This will cover you in the event of third-party property damage, loss, or injury. You could be accountable for compensation if a guest slips on a damp floor in your reception area, for example.
The normal maximum for public liability insurance is £2 million. Some local authorities require you to obtain a higher level of public liability insurance. This may be up to £10 million if you have an on-street seating area or host functions that are open to non-guests.
#2. Employers’ liability
Employers’ liability insurance is required by law if you intend to hire employees. This means you’ll be liable if one of your employees gets hurt while working for you.
#3. Buildings insurance
Your home is likely to be your most valuable asset. Purchasing building insurance will assist you in covering the costs of restoring damage to the structure, as well as the costs of a total rebuild. You should ensure your home covers the full cost of rebuilding it. Make sure to account for any outbuildings, boundary walls, pools, fitted kitchens and bathrooms, and other features in addition to the structure itself.
Hotel insurance cover optional cover
#1. Personal contents
You can get personal contents insurance if you or any of your employees live at the hotel. This simply combines your company insurance with protection for those who live there, which is akin to domestic contents insurance.
#2. Legal cover
This option permits you to seek financial assistance while pursuing legal action against someone else. Legal insurance isn’t required by law, so it’s not always included. Make sure you tell your consultant early on in the quote process that you have this coverage so they can focus their search for suitable policies.
#3. Loss of license
Because not all hotels serve alcohol, this optional coverage may not be in every insurance policy. If you lose your license to serve alcohol on your premises, loss of license insurance will compensate you for the loss of income and decrease in the total value of your business.
#4. Gyms, swimming pools, spas and treatments
These are the most typical activities and services provided by hotels. With certain suppliers, more unusual treatments may generate issues or unreasonable fee increases. Towergate, as a specialized insurer, is familiar with the insurance industry and knows where to get the best policy for your specific company needs. Simply chat with an adviser and go over what you have to offer, then let them do the legwork.
Hotel insurance exclusions explained
#1. Accidental damage
Accidental damage insurance protects you against damage to your property and possessions that aren’t by any other policy. Damage from a fire, for example, will be by your ordinary buildings and contents insurance. But you may not have coverage for the same items if you inadvertently put a nail through a pipe while hanging a picture. Accidental damage insurance protects you from these kinds of mishaps.
This coverage isn’t often included as standard, so make sure to tell your broker if it’s something you want. You should always be aware of the limitations and exclusions on your specific insurance, whether you have this coverage or not.
Insurers include exclusions in their policies to protect themselves against frivolous claims such as damage caused by normal wear and tear, and as a result, unintentional damage will be subject to a variety of exclusions. Discussing these and other exclusions will help you understand your obligations under the insurance contract, such as levels of maintenance (plumbing, tree surgery, etc.) and what your insurer is responsible for.
#2. Theft by violent/forced entry
This function protects your business in the event of a break-in. However, doors cannot always be kept firmly shut in a hotel; otherwise, how would your workers gain access to the premises? Because they can’t cover theft when the perpetrator enters through an unlocked door. The feature is dubbed theft via forced entrance (either a public entry or an unlocked staff door). To stay insured, make sure you understand and follow your insurance policy’s security standards.
#3. Keeping the property in good condition
The property and equipment must be adequate, which is a standard provision of hotel insurance coverage. This is to keep your employees and visitors safe. You are responsible for the regular wear and tear of your contents, which is not an insurance policy.
#4. Commercial kitchens / serving food
If you do a lot of cooking and have a frying range, your policy may have certain restrictions or you may be ineligible altogether! This is owing to the significantly greater fire risk that a frying range is to pose.
Hotel contents insurance explained
There are two types of hotel contents insurance to consider: hotel contents insurance and guest contents insurance. It is generally little or no stock in hotels. Things are brought in on a need-to-basis basis.
Furniture and the furnishings of a hotel room are the equivalents. When the number of rooms is multiplied, essential items like kettles, televisions, and furniture can quickly add up. It is critical to precisely quantify these expenditures. Inaccurate estimations will prevent you from claiming for these items to be if you require them.
It’s also a good idea to acquire ‘guest personal effects insurance’ or ‘guest contents insurance.’ Hotels can be targets for serious crimes. So investing in the coverage is to safeguard the safety of you and your visitors.
Some insurance contains per-guest claim restrictions, while others have overall claim limits that are often ideal for small to medium-sized enterprises. During a quote with hotel insurance brokers. Your adviser can walk you through the options or explore whether you need a higher level of coverage.
Things to consider when choosing your hotel insurance policy
#1. You are a business
Have you been operating your hotel without incident for some time? Some insurers will view your experience as proof of your capacity to run a risk-free business and offer you lower premiums as a result. If you have such experience. Please contact one of our advisors, who will be able to explore this option with you.
#2. Multiple properties
If you own more than one hotel, Towergate can save you money on admin costs and find insurers that would cut your premiums if you have many properties. We can even add new properties pro-rata, which means that everything renews at the same time instead of you having to juggle numerous policies.
#3. Cancelations
Commercial insurance products do not often provide a ‘cooling-off period,’ when you would otherwise be allowed to terminate your coverage for free within a specific amount of time. Check this during the quotation phase to make sure you understand your alternatives completely.
What is travel hotel cancellation insurance?
Travel cancellation hotel insurance is available for purchase as part of a comprehensive travel insurance package, for free if you have certain premium credit cards. If a trip is due to an extraordinary circumstance. The benefit is designed to protect purchased, nonrefundable reservations, such as flights, hotel reservations, and other bookings. Each policy will specify which occurrences are acceptable grounds for cancellation.
With COVID-19 still disrupting travel plans, it’s important to know which reasons for travel insurance hotel cancellation are valid due to the pandemic. For example, wishing to cancel a trip you scheduled months ago because your destination’s COVID-19 numbers are now growing and you’re afraid to travel is unlikely to be a sufficient excuse. Consider adding the cancel for any reason, or CFAR, supplemental upgrade to your insurance hotel brokers policy if you want to cancel a trip for any reason. If you cancel your trip at least two days before departure, CFAR will refund you up to 75 percent of your trip investment.
What does travel hotel cancellation insurance cover?
Imagine you’ve paid $5,000 for a two-week trip in Italy ($1,000 for the airline, $3,500 for the hotel, and $500 for the excursions), all of which is nonrefundable. Then you fall and break your leg a week before your travel date. Because injuries that demand medical treatment and prohibit you from taking your vacation count as a covered reason. If you have travel hotel cancellation brokers insurance, you’ll be able to obtain your entire prepaid, non-refundable trip cost back (as long as the entire amount was insured).
Other causes addressed include the death of a traveling partner, adverse weather that disrupts service, jury duty, a terrorist attack, job termination, and other unusual situations. Although this is not an exhaustive list of all covered causes, in order to qualify for a reimbursement, the cancellation must be due to unforeseen circumstances. Examine your policy’s fine print for specific specifics on which reasons are covered. You’ll need to submit claims to the insurance provider to substantiate your claim if you want compensation.
Hotel Insurance cancellation Brokers
The majority of hotel insurance brokers products cover ordinary building insurance (which would be normally out at the point of exchange contract when buying the hotel). Consider the additional hotel insurance brokers that may be available under these specialized insurance packages. Legal expenses (to pay for legal bills in the event of a disagreement), goods in transit (if lost, stolen, or damaged), personal injuries (to recompense an employee), loss of frozen food (in the event of freezer failure), and computer malfunction are all examples of these types of coverage. Legal Expenses insurance is now available on some policies. When discussing your demands with your insurance broker, think about contents insurance; you’ll want to make sure your quantities insured are sufficient for your purposes.
The majority of small hotels will have both guest-provided furnishings and fittings as well as hotel-owned items. It’s critical to be clear on this because your personal information may need to be in a different section. It’s a good idea to photograph and document all valuable contents separately, potentially as an addition to the policy statement. Keeping purchase receipts will certainly aid in obtaining a quicker payment in the event of a claim. Seasonal goods, particularly alcoholic beverages, may be specified in policies. As they present easy pickings for opportunist criminals over the holiday season.
FAQs
Can you insure a hotel stay?
Yes, renters insurance covers hotel stays. If you’re displaced due to a peril covered by your policy, renters insurance will cover your additional living expenses, including your hotel bill.
What is Expedia's cancellation policy?
Expedia allows you to cancel flights within 24 hours of purchase for a full refund. You can also cancel your Expedia flights for a refund if the airline(s) allow refunds for the fare class or fare type you purchased. Review airline cancellation policies and other fare rules and restrictions in your Expedia itinerary.
Does Jetblue give you 24 hours to cancel?
Cancellations within 24 hours
If your travel was booked seven days or more prior to the scheduled departure date, you have 24 hours from the time the booking was made to cancel your reservation without being charged a cancellation fee.
