Making sure that you have the right hospitality insurance coverage can ensure that your hospitality business is protected at all costs, be it a hotel, motel or resort, but you also want to be sure that you’re getting cheap hotel insurance quotes from trusted companies along the way.

Much like with B&B Insurance or even restaurant and coffee shop insurance which are essentially on different industries, you want to be sure that you’re getting the best hospitality business insurance coverage for your money, which is one of the things that we will cover in this article. However, you also need to know more about the best hotel and motel insurance companies to do business with, that you understand what hotel insurance coverage your hospitality business needs - and that you are well aware of the average hotel insurance cost.

Moving forward, let's check-in!

Hotel Insurance Cost

Contrary to popular belief, there is no best hotel insurance policy because the exact type and amount of coverage varies from hotel to hotel, motel to motel and resort to resort. 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. 

Other factors will also go into determining how much you can expect to pay for your hospitality insurance, including your hotel’s level of maintenance and whether there’s a history of incidents at your hotel or motel. 

In general, the average hotel insurance cost for small hotels and motels is about $84 per month or $999 per year for a general liability insurance policy only. However, most hotels and motels will also require commercial property insurance, workers compensation insurance, commercial auto insurance, cybersecurity insurance, business interruption insurance and possibly other policies which may all be included and bundled in to one Business Owners Policy (BOP).

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.

Hotel Liability Insurance

Hotel liability insurance is one of the most basic forms of hotel insurance coverage and insurance for hospitality business, and it essentially covers the owner of the hotel from charges originating from customers and third parties. For example, if one of your clients ends up getting injured in one of your hotels, liability coverage can pay out for their injuries.

Hotel liability insurance policies have a payout limit, and if the damages exceed that limit, then the hotel owner or operator will have to pay out of pocket. Along with bodily injury, hotel liability insurance coverage will also protect the hotel operator from having to pay out for property damage that customers sustained.

The “third-parties” part of hospitality business liability insurance comes into play when you have people on site that aren’t your workers or customers. For example, if you have a catering company that serves food at one of your casinos, then your hotel insurance coverage may also extend to their employees.

Hospitality Indemnity Insurance

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 more rare and much more expensive than basic liability coverage, though it only applies to certain industries. 

While we’re sure you could find hospitality indemnity insurance if you searched through the 'Get Quotes' button option, many searchers end up getting it confused with hospital indemnity insurance, which is a completely different sort of coverage that is also known as medical malpractice insurance, which kicks in if a doctor makes a mistake and it results in a patient being injured or even dying. So do not be mistaken, as you are after something else.

However, a form of hospitality indemnity insurance that may apply to hospitality business owners is property indemnity insurance. This protects you from legal defects with the property that you’re purchasing, especially those that would require quite a lot of work to fix up.

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. 

Another difference between resort insurance and motel insurance is that resorts tend to offer their guests exclusive activities that may end up putting them in danger. All of this comes together to increase the relative cost of resort insurance, especially when you compare it to hotel insurance coverage.

Most resorts are covered by hospitality business insurance policies, just like hotels, but they are often handled by agents that are qualified to work with resorts. Since resorts tend to be big-ticket customers when it comes to liability insurance, don’t be surprised if you’re dealing with one of the higher-up agents at one of the best motel insurance companies.

Best Hotel Insurance Companies

Picking the right hotel business insurance provider will allow you to benefit from superior rates and better perks when it comes to their coverage. Better insurance companies tend to have superior customer service and some even offer exclusive packages that provide you with more coverage for your money. 

Below we reviewed 2 of the best motel and hotel insurance companies. By clicking the 'Get Quotes' button below and completing the process, you will be able to compare custom quotes online from these companies and other top motel, resort and hotel insurance companies to find the best coverage at the best rate from the best insurers for your hospitality business!

Leavitt Recreation and Hospitality Insurance

Leavitt 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. The company has been in continuous operation for over 40 years, so they’re certainly hospitality experts.

Leavitt Policy Details

Leavitt covers hotels and motels under their Lodges and Resorts policy. They will work with you to overcome the challenges that may be inherent in getting coverage and they pride themselves on ensuring that you get the best service possible. These policies are typically handled by their agent Leah Bright.

Pros

●       Great reputation and customer service

●       Midrange pricing

●       Specialized service for equestrian activities, shooting sports, and more

Cons

●       No exclusive hotel or motel policies 

Average Cost: $233 per month

Best for: Resorts and travel lodges

Our Rating: 4/5

Great American Insurance Group Hospitality Insurance

Great American Insurance Group has been around for almost 150 years, and their member carriers dabble in all kinds of different insurance policies. Since 1872, the company has expanded into countless other areas, including hospitality insurance.

Great American Policy Details

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. 

Pros

●       Covers theft

●       Affordable

●       Applicable for amusement parks and casinos, as well 

Cons

●       Only available in specific markets

Average Cost: $205 per month

Best for: Hotels on a budget

Our Rating: 4.8/5