Hotel insurance is the best option for the hospitality industry. When running a motel, resort or a lodge, your aim is to provide safe and comfortable accommodation for customers to have a restful stay and have fun. Remember that your facility will be hosting couples, individuals, families and corporate groups for days and sometimes weeks. There is real cash in this industry though without proper insurance cover your business is likely to go under in case of claims.
Risks in hospitality industry
The following risks threaten the survival of your hospitality business that can only be covered using hotel and accommodation insurance:
Errors are common in the hospitality industry no matter how careful the management is. For example, you may have advised a client flying out of the country or state to start the journey from your motel at a certain time to catch a flight only to miss it due to delays in traffic. You may be liable for the expenses incurred in booking another flight, additional accommodation and other charges involved with delayed arrival to their destination.
During peak seasons, bookings in resorts, motels and lodges require careful monitoring to avoid double bookings. However, this may happen at times leading to serious inconveniences. The worst scenario is when a group of people for a corporate mission is booked in, only to find that the place is full. In this case, your business may be required to pay a hefty compensation fee.
Harm to third party
Customers in your hospitality business are among the third party. You would not like to do harm to your customers, but accidents do happen, right? Issues like food poisoning, theft, fire, leaking pipes that destroy customers’ property and crimes that may cause bodily harm may result in claims.
Hotel and accommodation insurance options
Ensuring that your hospitality business is secure with security policies and effective management is good but not enough to guarantee total protection against compensation claims. Similarly, going for a general policy may not adequately cover the risks that are unique to the hospitality industry. Here are some insurance ideas:
Public and product liability
This policy provides cover for compensation claims filed for customers’ property damage or body injuries within your facility.
Professional indemnity/management liability
This policy is essential in case of claims due to erroneous professional advice and other management issues that lead to costly inconveniences to clients.
Employees in the hospitality industry work with grills, fryers and electric cookers that may be a source of fire accidents. In addition, the staff interact with guests accommodated in your guest rooms to offer room services hence being prone to crimes. This policy provides compensation for injured employees while at work.
Your hospitality business could be interrupted due to natural calamities such as floods in your location, fire, breakdown of major equipment such as cookers and other causes. This may lead to a huge loss of income that can be recovered through business interruption hotel and accommodation insurance cover.