Bed and Breakfast Insurance – Essential Cover Checklist

Running a guest house comes with a lot of risks that need to be considered when purchasing your bed and breakfast insurance. While every B&B has unique needs and circumstances which should be addressed with your insurance plan through tailored add-ons, there are certain core elements that are essential.

Whether you’re preparing to finally make your dream come true by opening a guest house on the coast or are already running such a business and want to double check you’re properly covered, read on as we break down the three most important cornerstones.

1. Public liability

As a public-facing business, it’s absolutely imperative that public liability insurance for bed and breakfasts is included in your policy. This type of cover protects you if a guest decides to take legal action against you after they’re injured, become ill or have their property damaged while staying at your guest house.

There are many scenarios that could lead to such a situation and, no matter how professionally your business is run, it’s impossible to control everything that’s happening at all times.

It just takes instances such as a guest tripping over misplaced wires or getting food poisoning from breakfast to result in compensation claims.
When such occurrences happen, the hefty cost of legal proceedings and related expenses will be covered by your public liability insurance. Not having adequate insurance in place could easily result in ruin for small businesses operating on tight budgets. Standard public liability insurance can cover you for amounts ranging from £1 million up to £5 million.

It’s worth keeping in mind that there’s always the risk of encountering an opportunist guest who wouldn’t think twice about making unjust claims against you. Even if it comes down to your word against theirs, insurance helps to cover the cost of dealing with this.

2. Employers’ liability

If you have one or more employees, you’re required by law to have employers’ liability insurance in place. This protects you from compensation claims made by a member of staff if they suffer an injury or illness as a result of their job.

With this compulsory cover, you’re financially protected for up to £10 million. When thinking about situations that might result in compensation claims, there are endless possibilities.

One of your employees could be assaulted by an inebriated guest or hurt themselves because certain safety regulations weren’t in place.
Not having employers’ liability as part of your business insurance also leaves you vulnerable to hefty fines or prosecution as you’ll be breaking the law. Even if you only have one part-time staff member working a few hours per week, you still need to be covered.

3. Buildings and Contents

Having your property and its contents in shipshape is an important part of running your bed and breakfast business. If anything should unexpectedly happen to put either in jeopardy, you’ll obviously want to be able to get everything back in order as soon as possible. This is where building and contents insurance comes in to provide protection in a range of unanticipated circumstances.

Your B&B might be the victim of crimes like theft and vandalism or freak weather incidents such as flooding or a fallen tree could cause serious structural damage to the guest house.

Building and contents insurance covers the cost of any repairs so that your business can get up and running again. The amount you’ll need to be insured by will depend on aspects such as the value of the building and contents in question. If you want to take this protection further by covering any trade losses suffered during the time you’re unable to operate, a business interruption insurance add-on is available.

Looking for comprehensive bed and breakfast insurance, or just want to check that your policy covers all it needs to? Contact The Insurance Octopus for further information or a no-obligation quote today.