If you’re relying on a generic commercial general liability insurance policy to cover your hotel business, oh, the gaps you’ve created. Oh sure, the general liability policy is going to cover your building and grounds, but it doesn’t begin to address the specific risks that hotels face. And while many general liability policies give you additional coverages that are useful – such as employer’s liability coverage – it falls far short of giving your hotel business the comprehensive protection that a specific insurance policy would give you.
Most general liability policies give you the basics – business interruption coverage, injury coverage, employee theft, damage – but what isn’t addressed in any generic policy are the more costly issues. Business interruption coverage on any general liability policy may not include interruption due to food-borne contamination, natural disaster, murder or suicide investigations, contagious diseases, or even a drop in tourism. Hotel insurance is designed to address the more specific nature of your business.
Also, hotel insurance offers premiums based on the number of rooms. And if you can’t fill that hotel? There’s coverage for that.
Since hotels are exposed to more legal entanglements due to guest privacy issues, guest services, or guest treatment, hotel insurance is essential to provide that added layer of protection from claims against the hotel brought by guests.
As we’ve mentioned on this blog before, any amenity associated with your hotel business – such as spa services or fitness clubs – increase a hotel’s risk of guest injury or guest claim. A typical general liability policy will not offer coverage for these services provided by third parties. However, a comprehensive package can include optional coverage that give hotel businesses an added measure of protection from claims involving any referral services.
Don’t expect a basic commercial liability policy to cover your specific hotel insurance needs. Examine your current coverage with a hotel insurance specialist to see how much you’re leaving to chance. Specialized hotel insurance products offer a level of protection unmatched by generic policy coverage.
By James Clapton