Hoteliers who assume standard property and liability insurance equals comprehensive risk protection are due for an expensive reminder that one size does not fit all. Don’t make the same mistake. Be sure you consider all the products available from the hotel association insurance market.
The Basics…and Then Some
Like any other business, hotels require a strong underpinning of standard coverages. What makes the hotel association insurance market unique, however, are the additional risks that are inherent to the hospitality business. Consider the additional endorsements and/or stand-alone policies that many hotels may require:
Property: Beyond the standard real and personal property policies, hotels–depending on location and/or recreational facilities–may need windstorm, flood, earthquake, fine arts, unique assets (such as a golf course or water park) and ingress–egress coverage. All hotels should strongly consider business interruption and terrorism endorsements.
Liability: A general liability policy is hardly enough. Business automobile liability, liquor liability, cyber liability, innkeepers liability and garagekeepers liability, as well as endorsements or policies aimed at specific spa and recreational activities are crucial coverage needs for a full-service hotel.
Workers Compensation: All but the smallest bed and breakfast require a workers comp package. Depending on the size of the hotel association, several creative options are available to reduce premium amounts.
Ancillary Markets: Hotels need comprehensive Errors and Omission and Directors and Officers protection, but broad exposure to a variety of risks will not be covered without additional protection against crime, fiduciary and employee benefits liability.