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Ensuring you have the right hospitality insurance coverage can ensure that your hotel has the best protection.
Much like with B&B or even restaurant and coffee shop which are essentially in different industries, you want to be sure that you know what coverage to purchase to avoid wasting money.
This article offers more about the best hotel, resort, and motel insurance companies to do business with, their costs and various policies.
Liability insurance protects a hotel from third-party claims. There are many types of liability insurance. And for hotels, the most common liability insurance are:
Hotel liability insurance is typically offered as general liability insurance, which is one of the most essential hotel insurance coverage.
This type of liability insurance for hospitality business provides protection from third-party personal injury claims and property damage claims.
As the policyholder, you can use general liability insurance to pay for defense costs and compensatory amounts to the third party.
Here are some examples so that you understand how hotel general liability insurance works in practice:
General liability doesn’t only take care of property damage and personal injury claims. It has add-ons that provide protection against other exposures associated with your hotel business’s interaction with guests and other entities. These add-ons are:
Public liability insurance is another liability policy available for hotels. Just like general liability insurance, public liability insurance covers personal injury claims and property damage claims from third parties.
Hotel liability insurance policies have a payout or coverage limit. Liability insurance will only help you settle a claim up to the amount covered by its limit.
For example, if a personal injury claim costs $500,000 and your general liability or public liability insurance has a $1 million limit, then you can use any of the two to pay the compensation in full.
However, if the claim is much higher than your liability insurance’s limit, you’ll have to pay the excess for yourself.
Umbrella liability insurance can help you with the above situation. This liability insurance will pay for the “excess” amount your liability insurance policy can’t take care of. So if you still have $1 million left to pay, umbrella liability insurance will pay for such excess on your behalf.
You have a lot of tangible assets to protect against losses when running a hotel. In connection, you’ll get the most comprehensive protection through commercial property insurance.
Commercial property insurance has two basic functions:
Additionally, commercial property insurance has stocks and contents coverage, and business equipment and tools coverage.
Commercial Auto Insurance
Commercial auto insurance is a coverage for the commercial vehicle your hotel owns whether it be an expensive limousine or economy passenger van. The four types of protection your hotel’s commercial vehicle gets from this insurance are:
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If an employee gets injured, you’re responsible to pay for treatment, hospitalization, medication, and lost income compensation. Of course, you want to avoid paying for the costs yourself. Workers compensation insurance makes this possible.
Workers’ compensation insurance will pay for the treatment, hospitalization, medication, and lost income compensation of an employee.
Hospitality indemnity insurance is a form of coverage that will protect you even if you’re found to be at fault for what occurred. This kind of hotel business insurance is a little rarer and much more expensive than basic liability coverage, though it only applies to certain industries.
Resort Insurance
Compared to hotel business insurance, resort insurance tends to be a little more expensive because of the higher average quality of the accommodations in a resort. The vast majority of resorts tend to have high property values as well as plenty of valuables within their suites.
Hotel Insurance Cost
In most cases, the cost of insuring a hotel depends on the number of rooms that it has, the number of years in business, revenues, number of employees, and more.
The average small hotel insurance cost for small hotels is about $84 per month or $1,008 per year for a $1 million general liability insurance policy only.
Below, we’ve gathered the following average hotel insurance rates from some niche insurers for medium-large hotels. For these numbers, our hotel has a clean history and is a well-maintained building.
| Company | Cost per month | Cost per year | |
| CoverWallet | $83 | $996 | |
| Leavitt | $107 | $1,284 | |
| Great American | $115 | $1,380 |
CoverWallet offers four coverage plans for hotels and motels – general liability only, general liability and commercial property insurance, business owner’s policy with workers compensation, and a custom plan.
Coverwallet is your compan if you’re looking for a carrier that allows the paying of premiums, getting a copy of certificate of insurance, and managing policies online.
Average cost: $83 per month
Our rating: 10/10
Leavitt covers hotels and motels under their Lodges and Resorts policy.It is a company that specializes in working with companies in the hospitality and camping industries. Along with hotels and motels, Leavitt covers campsites, bars, and even recreational centers.
Average cost: $107 per month
Our rating: 9/10
Great American offers an exclusive policy for hotels, known as their Hospitality and Leisure policy.
They will provide coverage for clientele that ends up getting injured on your property and bundle it with property coverage for the buildings themselves and even coverage against theft.
Average cost: $115 per month
Our rating: 8/10
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Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
