Getting insured as a service business can often be a challenge because you may not know exactly what kind of coverage you need and what you can expect it to cost you. Unlike running a catering, coffee shop, restaurant, etc. - running a B&B seamlessly combines both the hospitality and foodservice industries. In this guide, we’re here to talk about B&B insurance.
The protection tailored bed and breakfast insurance provides begins with liability insurance. Liability insurance has different types. Each type covers specific claims third parties might file against your bed and breakfast business.
General liability insurance is a very common liability insurance policy as it’s available and useful for many types of small businesses.
Your bed and breakfast business admits vendors, guests, visitors, and other third parties. While in the premises of your business, these individuals might experience an accident and become injured or have property damaged. It’s also possible for your business operations to do the same.
Either way, vendors, guests, visitors, and other third parties will hold your bed and breakfast business responsible for their personal injuries and property damage. In connection, this is one peril that general liability insurance covers.
General liability insurance will cover medical expenses or provide reimbursements if your bed and breakfast business is responsible for someone’s personal injuries and property damage. It will also cover attorney fees, and other legal costs if the aggrieved person decides to take the dispute to court.
As stated earlier, taking care of personal injury claims and property damage claims is just one of the functions of general liability insurance. General liability insurance has optional coverages. These are:
Advertising injury coverage
Products and completed operations coverage
Your bed and breakfast business might be accused of inflicting advertising or reputational harm to a client, vendor, or another third party. Advertising injury coverage will help in this situation. This covers defense costs, other legal costs, and compensatory payments for slander claims, libel claims, false advertising claims, and copyright infringement claims.
Products and completed operations coverage, on the other hand, will cover costs if your bed and breakfast business caused personal injuries or property damage through a completed product or service.
Public liability insurance is another liability insurance policy that’s available for your bed and breakfast business. Just like general liability insurance, public liability insurance covers personal injury claims and property damage claims. However, it doesn’t cover products and completed operations, advertising injuries, and reputational harm. In other words, the scope of public liability insurance is more limited than general liability insurance. But still, if you think that the general liability is too broad for your business, get public liability insurance instead.
Your bed and breakfast service provides meals to some customers. Sometimes, improper food preparation happens and will result in food poisoning. When guests become sick and file a claim after eating a meal your bed and breakfast business provided, product liability insurance will cover defense costs, compensatory payments, and other legal fees.
Innkeepers liability insurance (also known as simply innkeepers insurance) is another form of business insurance that applies to the bed and breakfast business or any other type of hospitality business you run.
Innkeepers' liability insurance covers damage or loss to the guests' property while staying on the premises.
Hospitality industry operators are charged with the safekeeping of the property of the people staying at their place of business, and this kind of insurance will pay out if someone loses their property or has it damaged while on your watch.
Due to the nature of this kind of insurance and the relatively low limits that are applicable to it, of $1,000 per guest (unless the damage/loss is due to an act of nature like a hurricane, due to civil unrest, or due to the guest's own actions), you shouldn’t expect to pay more than $10-$20 per month for your innkeepers' liability insurance.
It’s impossible to operate a bed and breakfast business without a commercial building that houses guests and stores guests’ belongings, business equipment, stocks, and other valuables. Destruction or desecration might happen to your commercial building and commercial property insurance will help you recover.
Commercial property insurance has two primary functions:
Reimburse your losses if your bed and breakfast business’s commercial building is destroyed due to fire, extreme weather, and other covered perils. The amount of reimbursement you’ll receive is equal to the current market value or the original market value of the building
Reimburse losses when your business’s building incurs damage due to fire, extreme weather, theft, vandalism, and other covered perils. In this case, commercial property insurance will provide money equal to the value of the desecrated structures
Taking care of your bed and breakfast business’s commercial building is just one of the functions of commercial property insurance. Insurance companies include additional coverage in the policy’s terms. These are:
Business equipment and tools coverage
Stocks and contents coverage
Business equipment and tools coverage will reimburse your losses if cooking equipment, trolleys, air conditioners, generators, and other similar items become damaged or lost due to theft, vandalism, extreme weather, and other covered perils.
Aside from tools and equipment, your bed and breakfast business has furniture, food supplies, CCTV cameras, smoke detectors, and other valuables. Stocks and contents coverage will reimburse losses if these become damaged or lost due to the perils we mentioned. Still, remember that stocks and contents coverage doesn’t include your guests’ belongings as this is the job of innkeepers' liability insurance.
A Business Owners' Policy (BOP) is an insurance product that combines general liability insurance and commercial property insurance. Insurance companies will suggest you purchase this upon knowing that you want your bed and breakfast business to be covered with general liability insurance and commercial property insurance.
Getting a business owner’s policy is more cost-efficient than buying general liability and commercial property insurance separately.
Another thing, many insurance companies offer additional coverage in their respective business owner’s policies. For example, the company, CoverWallet, includes workers' compensation insurance in its business owner’s policy. There’s also The Hartford that includes business interruption insurance and data breach insurance in its business owner’s policy.
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Insurance companies don’t only underwrite commercial property insurance, liability insurance, and business owner’s policy for your bed and breakfast business. You have more options such as:
Workers compensation insurance
Commercial auto insurance
Your bed and breakfast business has employees. It’s important for you to get an insurance policy that kicks in when they get injured. Injuries can happen anytime. Employees working in the kitchen might trip, slip, or get burned by hot surfaces or liquids. Also, stacking stocks, receiving deliveries, and cleaning will result in repetitive motion injuries that might take months to fully heal.
Workers' compensation insurance is the insurance policy you’re looking for. This insurance will take care of your bed and breakfast business’s employees by shouldering the cost of treatment, hospitalization, medication, and lost income compensation if a work-related injury or disease is experienced.
The amount of lost income compensation an employee receives from workers' compensation insurance is equal to two-thirds of the average weekly wage subject to a cap provided for by workers comp laws. Furthermore, the employee will receive insurance money until he or she is fit to work.
Your employee might die because of a work-related injury or sickness. Workers' compensation insurance will also take care of this peril by providing death benefits such as funeral payments and allowance to the deceased’s dependents equal to two-thirds of the average weekly wage.
If your bed and breakfast business has a commercial vehicle for fetching guests and employees or hauling goods and supplies, investing in commercial auto insurance isn’t a waste. Commercial auto insurance offers the following protection:
Auto liability coverage
Physical damage coverage
Your bed and breakfast business’s commercial vehicle might cause an accident. Auto liability coverage will help in such a situation by doing the following:
Pay for the medical treatment of third parties who got injured after getting involved in the accident your business’s commercial vehicle caused
Provide reimbursements if your commercial vehicle didn’t only injure people but also damaged properties
Still, you should know that auto liability coverage doesn’t provide help in all kinds of vehicular accidents where your bed and breakfast business's commercial vehicle is at fault. The insurance company won’t approve your claim if the accident happened because:
The commercial vehicle is running without working headlights/taillights, and other features mandated by law
The driver is DUI
The accident happened because the driver is running away from the authorities
The driver doesn’t have a license
Physical damage coverage will keep your business’s commercial vehicle looking new and presentable. This has two forms:
Collision physical damage coverage - If your business’s commercial vehicle incurs damage after colliding with an object or another vehicle, collision physical damage coverage will pay for parts repair or replacement. But know that damage due to colliding with a deer or any other wild animal is excluded
Comprehensive physical damage coverage - If your bed and breakfast business’s commercial vehicle incurs damage due to fire, theft, vandalism, and other covered perils, comprehensive physical damage coverage will take care of parts repair or replacement. Still, remember that coverage excludes damage to aftermarket vehicle parts
As with any other business, the cost of insurance depends on your particular situation when you’re running a B&B. There’s a bit more variance in the cost of bed & breakfast insurance because of how radically the size of each operation can vary compared to one another, as some B&Bs consist of a few rooms while others are multi-floor operations.
If you run a mom-and-pop B&B that only has a few bedrooms and no extra employees, you can expect to pay quite a bit less. This is because you likely won’t need workers’ comp coverage and you also won’t have to insure anywhere near as large of property in case of damage.
The number of customers that you tend to work with over the course of a year will also impact how much you pay for insurance. If you have more clients coming through your door over the course of a given month or year, then you’re taking more of a risk that one of them comes after you for damages.
Since this will increase the risk that the insurance company is taking on on your behalf, you can expect to pay them more each month for your insurance premium.
That said, the average bed and breakfast insurance cost is about $70 per month, or $840 per year for a $1 million general liability insurance coverage. As a bed and breakfast business owner, you may wish to have several other coverages in addition to general liability, like commercial property insurance, business interruption, and more. A typical Business Owners' Policy for bed and breakfast will cost around $89 per month or $1,068 per year on average.
If you’re looking to get your policy started ASAP and interested in the rates, here are some average B&B insurance costs from some of the best B&B insurance companies that accept B&B insurance pay online in most cases. We’ve collected the following bed and breakfast insurance quotes for a small-sized B&B that has had no safety issues in its past:
|Company||Cost per month||Cost per year||Best for|
|CoverWallet||$75||$900||Bed and breakfast insurance quotes comparison online|
|Allen Financial Insurance Group||$89||$1,068||Comprehensive replacement cost coverage for bed and breakfast businesses|
|Outdoor Insurance Group||$96||$1,152||Innkeepers' liability insurance for B&B businesses|
|Leavitt Recreation & Hospitality||$110||$1,320||Tailored bed and breakfast insurance with liquor liability coverage|
The vast majority of guest house insurance policies also apply to B&Bs or vice versa. As such, you’ll find that the average cost of a guest house policy roughly mirrors that of a B&B policy, provided you’re getting the same kind of coverage for both of them and they’re of about equal size.
However, since guest houses tend to be larger than most B&B’s, the average guest house insurance cost for them realistically tends to be a little bit higher, at about $56 per month or $672 per year for general liability coverage only. Most guest house insurance policies provide the policyholder with property coverage as well as general liability coverage and business interruption insurance through a Business Owners' Policy, though additional add-ons can be purchased.
Hostel owners have access to the same kinds of policies as other hospitality industry owners. If you want complete coverage, including property coverage and liability coverage and sometimes business interruption and other coverage types on a bundled business owners policy rate, you can expect to pay $120 per month or $1,440 per year. If you're interested in just general liability though, you can expect to pay about $46 per month or $542 per year on average.
Of course, as with a B&B, your hostel insurance depends on the size of your hostel as well as any safety issues that may be on your business’s record. If your record is spotless and you run a relatively small hostel, then you can expect to pay a bit less for your combined coverage.
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When shopping around for bed and breakfast insurance, one of the best things you can do is ensure that you are working with the best company. This will ensure that you get the best service available and that you pay the most reasonable rates for that service. Instead of searching "B&B insurance near me", read these reviews that give an idea of the best bed and breakfast insurance companies' pros, cons, and rates for a $1 million general liability coverage.
Find bed and breakfast insurance companies and compare quotes online
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Manage your insurance online via the MyCoverWallet app
Not an insurance company but an insurance broker
CoverWallet is an insurance broker that’s part of AON insurance. Visit this company’s website and use its online quotes comparison platform to find carriers that offer cheap and comprehensive bed and breakfast insurance. There’s no need to proceed contacting a company of your choice because CoverWallet allows you to buy insurance immediately. Also, you can manage your insurance and pay for premiums online via the MyCoverWallet app.
Best for: Bed and breakfast insurance quotes comparison online
Average cost: $75 per month
Our rating: 10/10
Has a replacement cost coverage that kicks in even if the policy limit is exceeded
No online claims filing
Allen Financial offers a specific policy for B&Bs that aren’t covered by big-name carriers. They offer full replacement cost coverage, even if the overall policy limit is exceeded. They also offer replacement cost for any of your personal belongings and will cover you in case of crime and business interruption.
Best for: Comprehensive replacement cost coverage for bed and breakfast businesses
Average cost: $89
Our rating: 9/10
Online quotes available
Customer service can be reached by texting
Doesn’t offer commercial auto insurance for bed and breakfast businesses
Leavitt offers a range of hospitality industry insurance policies, including b and b insurance. Their most common offerings in the B&B insurance space include commercial property insurance, which will cover you in case you have to repair the premises after it’s been damaged by clients.
They also offer innkeepers’ liability coverage, which will kick in if any of your clients have their property lost or damaged while they’re staying at your B&B. Finally, they also offer more general business insurance policies like general liability coverage and coverage for loss of business income.
Best for: Innkeepers' liability insurance for B&B businesses
Average cost: $96
Our rating: 8/10
Includes liquor liability insurance in its tailored bed and breakfast insurance
Doesn’t have online quotes
Outdoor Insurance Group (OIG) is a B&B insurance company that offers this particular form of coverage alongside their guest house coverage. However, you can opt for just their B&B coverage if you don’t have a guest house or if you already have yours insured with a different provider.
What makes these bed and breakfast insurance specialists unique compared to some of their competitors is the fact that they’re used to working with high-value property, so they offer expanded coverage limits. They also cover commercial kitchens and they offer liquor liability insurance, as well.
Best for: Tailored bed and breakfast insurance with liquor liability coverage
Average cost: $110
Our rating: 7/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!