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What you should know when choosing Hotel Business Insurance

Running a business in the hospitality industry comes with a list of risks. You’re catering to guests and committing to keeping them safe and happy on your premises. As a hotel owner, you have to think about potential disasters that your business could be held responsible for. A guest could slip and fall by the pool, or a customer could have an allergic reaction to an ingredient in a dish at your restaurant. These risks can lead to damaging lawsuits for your hotel business.

Before your hotel is ready for guests, you must have hotel business insurance in place. Keeping in mind the dangers of the industry, here are some things to think about when choosing insurance for your hotel business:

  1. Identify the physical location of your hotel. You should ask yourself some of the following questions. Does your business operate out of a building you own, or are you renting a space? Is your business in a location prone to natural disasters like wildfires or earthquakes?
  2. Think about extra amenities you have. Does your hotel have a swimming pool or a bar on its premises? Or company-owned vehicles? The features that make your hotel stand out can also be the ones that hurt your business the most if not protected by hotel insurance.
  3. How many employees does your business employ? Does the work they do make them prone to injuries? How are you able to respond to accidents in the future?
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Here are the types of business insurance you should have for your hotel

Liquor Liability Coverage

Having a bar or space that sells or serves alcohol can add another element to your business. But it also comes with potential risk of liability. Liquor Liability Insurance is essential if you serve alcoholic beverages, and your hotel business can benefit greatly from it.

Guests who drink excessively can engage in unruly behavior even after they have left your premises. If a patron was over-served, leaves your bar and gets into an accident on his way home, your business may be responsible for medical expenses and legal fees.

Liability Insurance

Hotels, inns, bed and breakfasts, and motels are vulnerable to claims of liability. Your business is potentially responsible for bodily injury sustained by your guests while on your property, as well as any damage to your property itself.

For example, having a swimming pool is attractive for potential visitors, but it may increase the risk of guest injuries and accidents on your premises. If a guest slips on the wet floor surrounding the pool and injures their back, your business can be liable and may have to pay large costs out of pocket. To better prepare for accidents like this in the future, you should have hotel liability insurance in place.

Commercial Property Insurance

Commercial property for coverage for hotels aids hotel owners whose property may get damaged in case of disasters and accidents. By protecting the building and what is inside it, this coverage eases the repercussions from property damage, if a fire breaks out and destroys your outdoor patio for example. Property Insurance can help cover the cost of repairs.

Workers’ Compensation

Most hotels have staff of some kind - whether it is concierge, housekeepers, chefs, or pool attendants. While exact laws may vary, most states require you to have Workers’ Compensation - a critical piece of hotel business insurance. Hotel staff can be prone to injuries from cleaning and heavy-lifting, slips & falls, and burns in the kitchen. Workers’ Comp protects your business from paying out of pocket for medical bills for these injuries.

Failing to carry Workers’ Compensation in states where it is required can come with consequences that are severe for your business

Employment Practices Liability Insurance

Your staff may also be vulnerable to sexual harassment or discrimination by coworkers. If your business doesn’t have the right tools in place to deal with these complaints - they can result in employee lawsuits. Employment Practices Liability Insurance (EPLI) protects your hotel or inn from charges of wrongful termination, harassment, and discrimination.

Your hotel is unique. That’s why THREE offers comprehensive and affordable coverage that is catered to the unique needs of your hotel. Our goal is to make sure you can focus on what you do best without worrying about potential claims and legal issues.

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