Hotel Insurance
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What Are the Risks in the Hospitality Industry?
Fire hazards
Damages due to fire-related accidents can potentially cause a large number of property damages. Kitchens are fireDrowning
Hospitality establishments with swimming pools can possess dangerous risks. Even with onboard safety personnel, guests can suffocate and drown in mere moments. A study done by the Centers for Diseases Control and Prevention found thatDram shop liability
Casinos are hotspots for activities such as drinking and gambling. When guests are drunk and intoxicated, casinos can be liable for damages due to their actions. According to a study done by Florida International University Florida International University’s Digital Commons, casino drink policies potentially pose a massive problem. Dram shop liability originates from the custom of offering complimentary drinks as well as the layout of most hotels and spilleautomater baccarat casinos.Who Needs Hotel Insurance?
- Hotels
- Motels
- Resorts
- Caterers
- Casinos
- Cruise ships
- Bed and Breakfasts
What Policies are Available in Hotel Insurance?
Mentioned are some of the coverages for the hospitality industry.
Business Owner’s Policy (BOP)
A business owner’s policy (BOP) is an unquestionable requirement for any business. It is typically a blend of different insurance policies such as business interruption policy, commercial property, and general commercial liability. BOP could be a significantly valuable policy that covers a large portion of the dangers and risks inside your place of business since it covers:- Business personal property
- Income loss due to business property damage
- Bodily harm and injury
- Equipment malfunction
Workers Compensation Insurance
This insurance coverage covers lost wages reimbursements or medical expenses for an employee due to an injury sustained. Employees can face accidental slips, knife cuts, and other unpredictable situations during events. The business is liable to pay for the costs as well as reimburse lost wages to the employee in such cases. Thus, having a workers compensation insurance policy for your business is a necessity.Commercial Auto Insurance
If your business utilizes vehicles for day to day operations, then having commercial auto insurance is very important. This insurance policy covers claims associated with property damage and bodily injuries centered around vehicles. Businesses in the hospitality industry use their vehicles for numerous purposes, such as transporting goods, receiving guests, and dropping them off. In case of an accident, the business will be liable for any damage caused to the people or other businesses involved.Commercial Property Insurance
Properties owned and operated by businesses can be subject to fires, vandalism, explosions and theft. The commercial property insurance policy covers such damages. This policy coverage covers the malfunction of gears and equipment. Hospitality establishments such as hotels and casinos are prime targets for robbers and thieves. As per HG claims, there are more cases for theft in such locations than any other crime. Hence, proper commercial insurance is essential for your hotel business insurance.Don’t wait until it’s too late! Get your affordable and custom-tailored hotel insurance policy quote for your business today.
Commercial General Liability Insurance
Commercial general liability insurance (CGLI) is a type of insurance policy covering third-party damages caused by any operations within the business premises. This policy covers claims related to bodily injuries, damage of property, and defense against legal actions.
People involved in the catering business frequently operate in hotels as well as event locations. Damages caused by the employees during such events could have the company facing some lawsuits. For example, if a server accidentally breaks or damages any property at an event location, CGLI would help cover the damages.
Additionally, event insurance coverage can also be a viable option for damages that are not covered by CGLI during events.
Employment Practices Liability Insurance
Employment practice liability insurance (EPLI) is an insurance policy covering claims associated against a business for illegal practices such as sexual harassment, unfair termination and discrimination. Alternatively, this insurance policy is also known as employer’s liability insurance.
There can be situations where possible events or misunderstandings can lead to employees filing a case against your business for illegal practices. EPLI helps in covering claims in such settings.
Cyber Liability Insurance
Cyber liability insurance includes all the associated technology usage risks such as cyber theft, crimes, and data breaches.
The hospitality industry businesses such as hotels, motels, casinos, and caterers all depend on technology to assist in keeping track of guest information, accounts, and payment details. As per Deloitte reports, from 2009 to 2017 the US hotel industry’s gross bookings saw growth from $116 billion to $185 billion. With such high figures, it is no surprise that the businesses are the target for cybercriminals. For this reason, adding a cyber-liability policy to your list of insurances is a smart move.
Umbrella and Excess Liability
Commercial umbrella insurance can be considered an addition to the liability coverages associated with conventional liability policies, such as property, commercial auto, and general liability.
For example, suppose there is a guest with a disability who gets injured within your business premises. In that case, the claim can exceed the limit of the already existing commercial general liability. Basically, in situations where the claim exceeds the policy limits, having an umbrella insurance coverage is helpful as it covers the excess claim charges.
Liquor Liability Insurance
As per the dram shop law, all businesses that sell alcohol are accountable for damages or injuries caused by drunk patrons. In such scenarios, businesses require liquor liability coverage.
According to Chron, many Las Vegas restaurants earn the majority of their income from alcohol sales. Given the high revenue probability, liquor liability can possibly be a significant risk for your hotel business.
Pollution Legal Liability Insurance
The owning, developing, constructing of any facility comes with various environmental dangers as well. For such cases, pollution liability insurance can cover the claims by the involved third parties against injuries and property damage during business operations
Establishments such as hotels, motels and casinos frequently purchase pollution liability insurance to protect themselves from claims related to air quality, leaks, molds, etc. This policy covers the overall costs of investigation, remediation, interruption of business, and legal claims.
How Much Does Hotel Insurance Cost ?
The cost of hotel insurance is affected by a few elements that are related to your business. They are as follows:
- Location of the business
- Business type
- Size of the business premises
- Services provided by the business
- Number of employees
- Annual revenue
- Valuation of assets

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Don’t wait until it’s too late! Get your affordable and custom-tailored hotel insurance policy quote for your business today.
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Now, we can sleep soundly knowing we have the coverages to protect our business. What an insightful article!
Thank you!
Do I still need to get liquor liability insurance or will hotel insurance cover everything?
A liquor liability insurance pairs itself with a hotel insurance as well. But if it doesn’t it is always advisable to have one.