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Whether you run a state manor guest house or a small family hotel, if you want to protect your business in the event of a serious incident, you will need a good level of cover through an appropriate hotel insurance policy.
Running a hotel is not without its stresses. From maintaining the upkeep and cleanliness of the premises, to juggling staff and ensuring guests have all their home comforts to hand. You probably often find that you have very little time to yourself after a busy day, if any at all! The last thing you will want to be doing then, is searching the internet for various hotel insurance quotes.
Here at Utility Saving Expert, we have created this ultimate guide to hotel insurance, to hopefully make choosing the right hotel insurance a more straightforward and less stressful process. Once you know what to look for, why not head over to our online comparison tool and you could get the right hotel insurance by filling out a simple form.
We will cover frequently asked Funeral Plan questions such as:
Hotel insurance is a specifically tailored form of business insurance which will protect you, your business and your guests, should a claim be made against you.
Given the busy environment and the number of staff and guests you may deal with daily, the risks associated with running a hotel are extensive. If anything was to go wrong, for example a fire in the kitchen, or a guest who became injured on your premises due to your negligence of some sort, the impact could result in the business being unable to continue trading. This in turn could potentially lead to a large financial loss and ultimately, the closure of your business altogether.
Hotel insurance then will cover you against such incidents, safeguarding your business from all eventualities and help to keep the business continue operating.
When considering why you need hotel insurance, it is important to recognise three key factors which help contribute to keeping your hotel afloat.
The first key factor is the property or premises itself, as without it, you simply wouldn’t have a business. The property itself should therefore be considered your most expensive asset- it is key to the continuity of your business.
If you are liable for the rebuilding costs, or you own the freehold, the correct hotel insurance cover will protect the property, and will even cover the cost to make repairs to or rebuild the property. Imagine the costs you could be facing if you had no hotel insurance in place? It’s probably too difficult to think about, right? Hotel insurance is therefore an absolute necessity if you want to keep those thoughts at bay.
The second key factor to consider is your staff and your guests. Without staff, it is likely you would be unable to run your business alone, equally without your guests, you wouldn’t have enough income to survive and continue trading.
Hotel insurance will therefore protect you, your staff and your guests, should somebody get injured on the business premises.
Again, without the correct level of cover, you could face a hefty bill if an injured guest made a claim against you.
The last key factor to consider is your income. Without this, the business would not be able to continue operating and the worst-case scenario, it may face closure.
A specialised hotel insurance policy will therefore protect your income, should you need to close your hotel for any period, perhaps to carry out building work or make repairs to the property.
Without all these key factors, it is highly likely your hotel wouldn’t survive another winter (or summer, depending on the time of year). For these reasons, it is important you have a good level of hotel insurance in place to protect you against all eventualities.
Each hotel will be different and unique from any other, which means the level of cover will be dependant on several factors. These factors include:
You can discuss your requirements with your insurance provider, so make sure you disclose any specific details relevant to your hotel.
As a general guide, a good hotel insurance policy will usually include the following levels of cover:
Public liability insurance will cover you against loss, damage or injury to any third parties whilst at your hotel. Accidents, though few and far between, do tend to happen and often when we least expect it. They could range from a guest tripping up on a piece of broken carpet, to the postman slipping on a wet floor within your reception area.
The bottom line is, if any injured third parties were to make a claim, you would want to be covered in case you were held liable for compensation or medical costs.
Public liability insurance is usually offered as a standard part of your hotel insurance policy, though you should always check with your provider. Limits are usually offered at £2 million as a standard, however this could change depending on the events or functions your hotel may offer to guests or members of the public. As an example, some hotels will often hold events in which members of the public can attend. In this case, they may be required to hold higher level of public liability insurance, which could be up to £10 million.
It is important you discuss with your provider the specific requirements of your business to help establish the correct amount of public liability insurance you will need.
Employers liability insurance is like public liability insurance; however, it covers the staff you employ, should they be injured whilst at work. It will also protect you against any compensation claims, should you be held liable. Legal costs and medical costs should also be covered.
It is a legal requirement that you obtain employers liability insurance whilst running a business, so without it, you could face fronting a large fine. The only time you would not be legally obliged to take out such insurance, is if you ran your hotel alone and did not employ any staff.
Again, this is usually included as a standard within most hotel insurance policies, though it is still best to double check before taking out any policy.
As we touched upon earlier, one of the fundamental key factors to running your hotel business will be the building itself. With this is mind, it is most definitely one of your most expensive and important assets that you should try and keep protected, whatever the cost.
Buildings insurance does exactly that – it protects your property in the event of any structural disaster. Should your property suffer damage from any weather-related incidents, such as a storm which caused flooding or structural damage from a falling tree, you will be covered against the costs of repairing that damage, right through to the cost of a complete rebuild.
It is important you consider how much it would cost to rebuild your premises, including any outbuildings, swimming pools, fitted kitchens and bathrooms, as this will help to determine the amount of cover you require. Most insurance providers will ask you this question, so be prepared to answer this question to the best of your knowledge.
If you estimate the wrong re-build cost, you could potentially be paying over the odds, for an amount of cover you don’t necessarily need, or on the other hand, not paying enough, resulting in you having to reach into your own pocket to make up the difference.
Alongside building insurance, it is equally important you have the correct level of contents insurance in place. This will effectively cover any content within your hotel, such as wardrobes, chairs bed and lamps, as well as any general furnishings.
Protecting your contents is extremely important to ensure your hotel runs smoothly. Imagine the look on your guests faces if they were to walk into an empty bedroom without homely necessities. The likelihood is, without these furnishings, you would lose potential customers and most probably your reputation as a business. It is also a legal requirement to ensure you have the correct level of content cover in place.
It is worth noting that contents insurance will usually cover the personal belongings of any guests that stay at your hotel too.
If your business needs to stop trading, perhaps whilst work is carried out to the building, it is important you have any overheads covered, such as rent and wages. Business interruption is therefore designed to protect you in such instances.
It will also cover you for the loss of income you might experience whilst guests are unable to stay at your premises.
There are several optional extras you will also be able to include on your policy, should you feel essential to your business needs. These include:
Many people that run hotel businesses also live at the premises, alongside many members of staff. For this reason, it is important you make sure you have appropriate cover in place to protect yours and your staff’s personal possessions.
Unfortunately, not every visitor will be an honest one. Your possessions may be targeted by thieves disguising themselves as guests, or they may be accidentally damaged in some way. Personal contents insurance will cover any personal possessions you and your staff keep at the business premises, in such circumstances.
This optional add on will protect you financially, should you wish to take legal action against another party.
As with most insurance policies, there may be certain exclusions to look out for and you should always check your terms and conditions properly before signing any agreements.
Here are a few examples of exclusions to watch out for:
An insurance policy will usually not protect you from any general wear and tear to your contents. This means that most insurance policies will request you maintain the property and any contents or equipment to an acceptable level. By doing this, you protect your staff and your guests from risk.
If you make a claim, and an insurance provider believes you have not maintained your property to an acceptable standard, your policy could become invalid.
If you run a busy hotel that serves a selection of food to guests, you may be considered to have a higher risk of fires, especially if you have a frying range.
Some insurance providers will be unable to provide you with the correct level of cover due to this increased risk, so it is important you disclose the types of cooking facilities you use within your hotel before taking out any policy.
If a theft occurs due to a break in, it is essential you obtain the correct amount of cover. It is usually standard for many hotels to operate a 24/7 reception – resulting in doors not always remaining securely locked. Without this facility, guests and staff would be unable to come and go as they please.
Some insurance providers will be unable to provide adequate cover in the event of theft, especially if the perpetrator entered through an unlocked door. It is important then that you discuss any security requirements with your insurance provider, to ensure your policy remains valid.
How can I find the right insurance for my hotel?
You should now have all the necessary information you need to help you choose the right policy and level of cover for your hotel insurance. Use Utility Saving Expert’s online comparison tool to help you find the right hotel insurance policy.
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