What Does Hospitality Insurance Cover?

Hospitality insurance can be crucial for businesses like hotels, restaurants and resorts. It can offer financial protection against a range of risks and liabilities that these establishments encounter.

Hospitality Insurance Coverage

The following is a breakdown of what hospitality insurance typically covers:

• General liability insurance—This is a fundamental component of hospitality insurance. It can help financially protect businesses against claims of bodily injury, property damage and personal injury occurring on their premises. For example, if a guest slips and falls in a hotel lobby, general liability insurance may help cover costs associated with the incident.
• Business property insurance—This coverage protects the physical assets of a hospitality business, including buildings, furniture, equipment and inventory. It can help cover damage caused by events such as fire, theft, vandalism and severe weather. For instance, if a restaurant’s kitchen equipment is damaged in a fire, business property insurance may help cover the cost of repairs or replacements.
• Workers’ compensation insurance—This insurance can be crucial for protecting employees. It offers coverage for medical expenses and lost wages if an employee is injured or becomes ill due to their job. Additionally, it can help protect employers from lawsuits related to workplace injuries.
• Business interruption insurance—This insurance can assist businesses in recovering lost income and covering operating expenses if they must temporarily close due to a covered event.
• Umbrella liability insurance—This can offer additional liability coverage beyond the limits of the primary policies. It can be advantageous for covering substantial claims surpassing the primary policies’ limits.

While these are typically the standard options for hospitality insurance, your specific business may need additional coverage. For instance, cyber liability insurance can be beneficial if your business relies on digital systems for reservations or payment, and liquor liability insurance can be essential for establishments serving alcohol. It’s important to work with an experienced insurance broker who understands the unique risks of the hospitality industry. They can recommend coverage for your specific operations.

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Contact North American Marketing Specialists Inc today to discuss your business insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.