Blending together a variety of key insurance covers (such as employer’s liability, public liability and contents insurance) can protect you and your hotel from unexpected events that could end up costing you thousands. In this guide, we will discuss all you need to know about business insurance for your hotel, guest house or bed and breakfast. This will include explaining what hotel insurance is, what it can cover, and the associated pros and cons. After reading, if you have any further questions of gaps in your knowledge, we will be more than happy to help – just get in touch and we’ll tell you everything you want to know.

What is Hotel Insurance & Which Hotels Can Benefit?

As a hotel owner or manager, you will be involved in the wider hospitality industry, with lots of different categories of business all operating under this larger service umbrella. You could run a city hotel, a countryside guest house, an urban bed and breakfast, a beach resort, a ski hotel, or any other business that operates within the hospitality industry – licensed or unlicensed. Regardless, no matter the size or stature of your hotel, you must be aware that your business is at risk of potential occurrences such as theft, damage or personal injury.

Hotel insurance can cover you financially should any of these instances occur. These are the things you need to consider when looking for a personalised hotel insurance policy. Here at The Insurance Octopus, we can help you understand your options when it comes to finding insurance for hotel premises and businesses. We will ensure you obtain the most efficient and cost-effective hotel property insurance policy.

Pretty much any type, size or stature of hotel can benefit from business hotel insurance. It doesn’t matter if you own a 5-star luxurious hotel in the centre of town, or a back-packers hostel high up in the mountains, hotel insurance will safeguard your business, your employees and your hotel guests. This can cover accidental damage, loss of income, personal injury claims and even legal expenses should you ever need to cover solicitors costs or the cost of going to court.

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What Does Hotel Insurance Cover?

What does hotel insurance cover and what can hotel insurance brokers do for you? In a single policy, hotel liability insurance from The Insurance Octopus could cover:

Public liability: Protects you from claims made by members of the public who have suffered illness, injury or damage directly caused by your hotel operations. Public liability insurance covers you for legal costs that you may be liable to pay for damages in relation to accidental bodily harm, the cost of medical treatment and transportation costs incurred by the NHS.

Product liability: Super important for hotel insurance requirements, product liability insurance covers your hotel in situations where personal injury or damage is caused by products sold or supplied in your hotel. This can include food, beverages, cosmetic products such as shampoos or anything else that has your company’s name, logo, or business details printed on it. Even if you simply distribute a product that is not manufactured by your company, your hotel can still be liable to pay compensation in circumstances where the product causes injury, damage or harm.

Employers’ liability: If you have staff members, it is a legal requirement in the UK for you to have employers’ liability insurance. As a hotel you are more than likely to have staff members, so it is really important you look into this type of insurance for hotel businesses. This protects your staff from loss, harm or injury whilst they are working for you. This includes full or part time staff, interns, volunteers, freelance workers, contractors and even those on work experience. It will cover damages and associated legal expenses in respect of death, harm or illness so that your employees are taken care of and your finances are safeguarded.

Business interruption: This level of cover protects you in the event that your business suffers a temporary loss of income. This could be caused by unforeseen circumstances, such as a disaster or loss. If there is a major fire within your hotel, you may need to vacate the building for some time whilst it is renovated and made safe again. A business interruption hotel insurance policy will reimburse your company for the income you miss out on during this time. This will help you keep on paying recurring operational expenditures such as your rent, utilities and staff wages. The policy is based on estimated future annual turnover and your previous financial records.

Contents insurance: This type of insurance for hotels is designed to protect the belongings inside your property, from your room furniture items to your restaurant items and beyond. Think, if you had a fire or flood, how much would it cost to replace all of the things inside your hotel? The chances are, that figure is in the tens of thousands – can you afford to foot this bill if necessary? Probably not, not all in one go anyway. Contents insurance protects your items against theft or damage, providing complete peace of mind.

Portable equipment insurance: This is very similar to contents insurance, but only in relation to contents and equipment that can leave your property. It will cover your portable electronic equipment both inside your hotel and when you are working away from it. This includes accidental loss, theft or damage in relation to equipment such as tablet devices, mobile phones, hardware and tools, laptops, printers, and video cameras.

Legal expenses: Legal expenses insurance covers your legal costs if you require legal advice, solicitor services or if a case against your hotel goes to court. It provides financial access to legal advice should you need it. This typically covers legal proceedings relating to your hotel, employment disputes tax enquiries, and other business-related prosecutions. It can also cover contracts you have entered into including assistance with debt recovery. 

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Pros and Cons of Hotel Insurance

Pros of Hotel Insurance

When it comes to hotel insurance requirements, the most important one for you is having the peace of mind that your company is protected. Running a hotel is extremely busy and often stressful work, with many risks involved, but a hotel insurance policy will ensure you have one less thing on your plate to be concerned about. Having this level of cover will protect your business in times of misfortune, when you must recover and bounce back from the unexpected and the critical. If disaster does strike and your hotel finds itself in the middle of a legal battle or lawsuit, or is considerably damaged due to an unforeseen event, you need the right type of business insurance in place to ensure you can remain open, re-open or at least avoid closing your doors for good. 

Hotel insurance brokers will offer a lot of flexibility when putting together hotel insurance quotes for your business. This is not a one-size-fits-all approach as every hotel is different, with diverging risks that require different levels of cover. We can tailor a policy to ensure it meets your hotel’s specific requirements.

Having this in place may even make it easier for your business to find potential lenders and investors. A business insurance package provides a financial guarantee and shows responsibility on your part. In fact, business insurance can often be required before some investors will conduct business with you at all.

Cons of Hotel Insurance

The most common and obvious con for any type of insurance is the cost. Opening up and maintaining a profitable business is a huge task in itself that requires huge financial undertaking. Business insurance – of any kind –  is considered by many to be an added or associated extra cost. The price you pay will depend on a number of factors, including:

Another major put off for some business owners is the relationship they have with hotel insurance brokers. Some insurance companies out there are not clear with their policy wording and can be slow to respond to communication or claims. You do not want to wait months on end for your insurance company to respond in the event of a disaster, as you will need to recover the loss of income as soon as possible. In addition to this, some insurance policies will only cover financial losses up to an annual cap, or fail to cover a list of certain scenarios at all.

Here at The Insurance Octopus, we are always happy to assist in clarifying insurer’s policy wordings which can be confusing at times. 

Your Hotel Insurance Questions Answered

How Does Hotel Insurance Work?

The best way to explain how hotel insurance works is to provide an example of a case in action. Imagine the roof of your hotel starts to leak due to a heavy rainstorm overnight, and the problem intensifies to the point where you must evacuate part of the premises before your morning arrivals. During the weather-induced nightmare you notice that a considerable amount of furniture has been damaged or destroyed, and you must close some of your rooms (and potentially refund some customers) to assess and repair the damage caused. Fortunately, your contents insurance and business interruption insurance will cover the financial cost of replacing the furniture and the loss of income caused by having to close off part of your hotel.

Why Do I Need Hotel Insurance?

Any type of business comes with its own set of risks, from theft, to accidental damage to the hotel building and its contents, to injury to your guests. This is why your hotel needs the right insurance for the risks it faces every day. If you operate, manage or run a hotel – regardless of its size, location or stature – then you really should consider some form of business Insurance to protect your business, your staff members and your hotel guests. Accidents can happen, things can unexpectedly go wrong, equipment can break and potential risks may spring up from the most unexpected of areas within your business.

Large compensation claims can damage more than just your company finances, it can also put a serious dent in your reputation, especially in local news sources and social media circles. Can you afford to pay thousands in compensation claims and the loss of business as a result? Get hotel insurance and protect your employees, members of the public and even the businesses you work with.

What Benefits Does Choosing The Insurance Octopus Bring?

Here at The Insurance Octopus, we offer a completely tailored service that ensures you get the best levels of service and the hotel liability insurance you need to be fully safeguarded. We will assign you with a dedicated insurance consultant, who will be in communication with you from our initial contact right through to the payment of your policy. If you cannot afford the premium in one go, don’t worry as we have a finance option allowing direct debits to be taken from your business account.

Check out our customer reviews to see what our current insurance policy holders have to say about our products and customer service. You’ll see one common factor across all testimonials – we like to do all of the hard work for you, so you can concentrate on running your hotel and entertaining your guests. Our customers can also take advantage of our great business rewards, providing access to a wide range of discounts and savings designed to help save your business money.

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Get in Touch with The Insurance Octopus

We hope this guide to hotel insurance has helped shed light on any thoughts, queries or concerns you had around the topic. If you have any remaining questions or there is something you are still unsure about, please do not hesitate to get in touch with us today on 0161 968 2041. You can request a call back from one of our team members, or ask for a quote for your specific business needs.