Hotel Insurance Policies
When you opt to insure your hotel or leisure business with Insure 24-7, you are choosing a broker with years of expertise, experience and in-depth knowledge of your business. We know that no two hotels are the same; they will differ in size, clientele, location, amenities and ultimately, insurance requirements.
Insure 24-7 won’t just sell you a standard hotel insurance policy, we will provide you with the right level of cover to giving both you and your clients peace of mind and protection.
We have access to specialist markets that most brokers do not communicate with which allows us to provide you with an insurance quote that is bespoke as your business.
Why Do I Need Specialist Hotel Insurance?
With any hotel insurance quote you should be considering five points:
- The premises or the property from which you operate from; is it a boutique hotel, a chain, a holiday park or a guest house?
- Your clients; do they simply come to your hotel for overnight stays or are they here for other purposes such as to play golf or for weddings? If this is the case you may want to consider additional cover for sporting equipment or expensive clothing and jewellery.
- Your staff; how many do you have, what hours do they work and what jobs to they perform? You may only have a limited work force that operates during core hours, alternatively, you may employ cleaners, chefs, porters and lift attendants
- Your income; what is your occupancy rate, how much do you charge, do you suffer from seasonality? If the worst was to happen you should be insured for loss of income.
- As an employer, you will be legally required to hold employer liability insurance and as a responsible hotelier, you will also need to take out public liability insurance. These two types of policies will cover you for negligent acts such as injuries, food poisoning and thefts.
After you have the fundamentals covered you then need to look at and understand any additional services that you offer that may require insurance, e.g. if you offer excursions you will need appropriate vehicle insurance.
How much does Hotel Insurance Cost?
Hotel insurance will depend on the sums insured and the level of risk. A multi roomed high-class establishment offering catering and outdoor pursuits will no doubt cost more than a 3 room bed and breakfast.
You could purchase an insurance policy that covers the bare minimum, but that isn’t what insurance is for; this is your livelihood and should be protected accordingly. Inadequate insurance could see any claim pay-out severely reduced or completely declined, not to mention legal action that could be taken against you by your employees and guests.
There are ways to reduce your insurance premiums which should be identified and highlighted to any potential insurer by your broker such as;
- Employee screening
- Training and development programs
- Robust disaster recovery and business interruption plan
- Security upgrades to locks, windows and fire prevention
- No claims discounts
- Combining all your risks under one policy
- Increasing your voluntary excess
Which Professions Require Specialist Hotel Insurance?
Hotels come in many forms, if you offer additional activities or consider your business to be more than ‘just a hotel’ then you will probably need specialist cover. Examples of hotels that require specialist insurance are those that offer additional activities and services, for example;
| · Paintball | Conferencing Facilities |
| · Weddings, Christenings, etc | Motor sports, quad bike and go karting |
| · Golf courses | Spas and leisure complexes |
| · Clay pigeon shoots | Fishing and water sports |
| · Cycling | Nightclubs and Bars |
| · Casinos | Concerts, shows and events |
| · Country clubs | Hotel Chains |
| · Listed buildings | Holiday parks |
What is Covered in a Standard Hotel Insurance Policy?
Public Liability: Compensation for losses will be paid for utilising your public liability insurance, these will be losses and injury to third parties and their property. You may not think this is necessarily your problem, but it is your responsibility to ensure that your property is properly maintained and that risks are minimised. Cover for public liability typically starts at £2m but you may be required to hold more cover if you offer a range of service, or your council may insist upon it as part of your licensing agreement.
Employer’s Liability: This is a legal requirement if you have employees, similar to public liability, this insurance gives protection for your employees should they become injured at work. The cover will typically start at £5m.
Buildings Insurance: Will cover you for rebuild costs, obviously the larger the premises and the higher the specification will dictate how much cover you will likely need to hold. If you decide to self-insure the building, ensure that you factor in amenities, outbuildings and access
Average Clause: this is a clause to be aware of to prevent you from purposely underinsuring in an attempt to save money. For example, if your premise is worth £1m but you decide to only insure the premises for £500,000. If the building completely burnt down you would quite rightly assume to only receive the £500,000 that you insured, however, the same ratio could apply if the building only partial burnt down e.g. £500,000 worth of damage was caused, you would likely only receive £250,000
Business Interruption: This insurance coverage will pay you your outgoings such as wages and rent should your business be severally interrupted and unable to make an income. It is important to factor in what indemnity period you want. For example, if the premises need to be completely demolished and rebuilt, how long would this process take? Remember to factor in time for planning and consents to be given, as this will take longer than you think!
Contents Insurance: If it isn’t fixed to a wall, floor or ceiling then it’s classed as contents. You will want some form of insurance for decoration, furniture and stock but also remember your guest’s contents too. This insurance coverage will pay out in the event of a theft, fire or another insurable event.
Additional Insurance Cover to Consider for Hotels
- Glass insurance, if not covered in your standard wording
- Guests contents
- Loss of a license
- Legal expenses
- Cyber insurance is especially important if you make online bookings and hold guest personal information
- Terrorism insurance
Exclusions in Hotel Insurance Policies
Always check your policy wording, you may think you have cover until you try to make a claim, then find out you are not!
Accidental damage: You will more than likely be insured for fire and damage from burst water pipes on your buildings and contents policy but that probably won’t extend to accidental damage. If your premises are fitted out with expensive items such as paintings, carpets, elaborate curtains and high tech TVs, then you will probably be advised to look into accidental damage cover.
Theft by violent or forced entry: This is another misconception with hotel insurance. If a thief breaks in through a window or locked guest door, then you will probably be insured. However, due to the nature of hotels, the front door is usually unlocked and wide open. Thieves could walk straight through your front door and remove stock, electronics, cash from tills and computer equipment. Unless you meet strict security guidelines, you will probably be uninsured for this event.
Why Choose Insure 24-7
- Exclusive products that you won’t find anywhere else on the market
- Access to highly qualified brokers and their network of specialist insurers
- Outstanding customer service
- Competitive rates
- Cover is underwritten by A rated or UK insurers, giving added peace of mind
Get A Quote For Hotel and Leisure Insurance
If you would like to get hotel and Leisure insurance or require some expert advice about contractors insurance requirements, then give us a call today on 0330 555 6000 or alternatively use our online quote system.
