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Best Insurance Policies For Hotels
No matter the size, hotels are located in almost every single city in the United States. With the need for hotels of all shapes and sizes increasing, the hotel industry shows no signs of slowing down. Does your hotel have the proper policies in place for all types of conduct?
People checking in and out of your hotel represent all walks of life. The types of situations that can happen are on all ends of the spectrum. This makes the necessary hotel insurance crucial for the success of your hotel.
General Liability for Hotels
The first and most generic policy that your hotel will need is a general liability policy. This policy takes care of the basics like damage, theft, or guest accidents that happen on the property. In some states, general liability policies are included in any standard business policy. Although it is not required by law, this is one of the most common policies that a business attains.
Depending on your general liability policy limits, you may want to consider excess liability insurance. Excess liability will provide additional coverage, if you exceed your general liability policy limits.
Since most hotels offer amenities like gyms and pools, having additional policy limits is something to strongly consider. These areas experience more accidents and injuries than other areas of your hotel.
Workers’ Compensation for Hotels
Workers’ compensation is another policy that is very common for all businesses. Unlike general liability, workers’ compensation coverage is required by law in most states in the US. This policy will provide coverage to your employees if they are injured on the job.
Commercial Property Insurance
Although a general liability policy will cover some aspects of your property, commercial property insurance is another policy that should be on every hotel owner’s radar. This policy will provide coverage if your building is damaged from a catastrophe.
It is important to know that this policy typically does not cover flooding or earthquakes. If your hotel is located in an area with the potential for one of these natural disasters, be sure to let your insurance agent know. They can provide you additional coverage to help in the case of that emergency.
Liquor Liability Insurance for Hotels
Liquor liability is another important policy for most hotels. Since your hotel is likely to serve alcohol, liquor liability coverage is a necessity. If someone in your staff overserves alcohol to a person, the liquor liability policy will provide coverage for damages they may have caused. This can also help protect your employee that is responsible from facing legal trouble.
Insurance for Valet Parking
Most hotels also have valet services. If your hotel has this service, you will want to have valet parking insurance. This provides coverage if one of your employees damages a vehicle while driving it to or from your valet area. If you have a high end hotel, this policy will be crucial, as your guests tend to drive upscale vehicles.
Cyber Liability for Hotels
Since all hotels electronically store sensitive customer information, a cyber liability policy is something that your hotel will need. Cyber liability will provide protection against any unlawful cyber breaches that may expose customer data.
If you do not have a cyber liability policy and your hotel experiences any type of hack, your hotel will be fully financially responsible to correct the damages. According to UpGuard, “in 2022, the average cost of a data breach has reached an ultimate high of $4.35 million, and can potentially reach $5 million by the end of 2023”. This can be rather costly to your hotel and can potentially leave you bankrupt.
In early October 2023, the MGM chain of hotels experienced a significant data breach. This breach was so intense that all computers, slot machines, elevators, smart devices, and more were impacted. Guests' credit cards and personal information were also compromised.
Although they were able to get things squared away, it is a good reminder of what can happen. All businesses that store any form of data are at risk of being the victim of a cyber attack - no matter the size of your company.
For more information on hotel insurance policies, give us a call at (303) 279-9700, or fill out the form below. One of our agents will be able to speak with you about your hotel's unique needs, and come up with insurance policies that best fit your requirements.