Many of the buildings in the hotel industry are faced with various risks which can lead to financial difficulties and even bankruptcy for the company. Considering that businesses such as motels deal with people on a daily basis, each mistake can be the backbone of a lawsuit. Issues can happen, in such cases, you need to be sure that your business is protected against damage with the proper motel insurance policy.

What is Motel Insurance?

Motel insurance is a specific kind of business insurance policy which has been modified to meet the coverage needs that are unique to motel and hotel owners. Depending on the case, there are many coverage options available. These options will let you create a policy that will be exactly what your motel needs to stand protected. Generally Cover will include Public liability insurance, then people look at cover to their building and contents

Types of Insurance that Motel Owners Need

As a motel owner, you will primarily have to get the following insurance types:

  • Public liability insurance
  • Business insurance property and buildings
  • Business insurance stock and contents
  • Business interruption cover. If, for example the whole building burns down, you’re not getting any income at this point. This covers for that. With rebuild costs going up and getting a builder getting harder your rebuild on a standard Motel could take from 12 to 24 months, could you afford to be without income for that long?

Each type of insurance will help you keep your business running. For example,  business insurance will help protect your business from financial losses. These losses are only covered if they are a result of a disaster, accident or other similar problems that your motel may face.

What Does Motel Insurance Cover?

It requires a great financial investment to open up a motel. You’ll need to be certain that you have the necessary protection against financial loss that is associated with loss of income and property loss. A few coverage options that may come in handy are the following:

  • Equipment breakdown: if you have a piece of equipment that has broken down (such as a computer system or a failure in your kitchen), affecting the overall flow of your business, this option will offer you the funds to repair the equipment.
  • Food spoilage: If a piece of equipment or some power failure leads to the food in your motel getting spoiled, you will be provided compensation for the losses that you have sustained.
  • Crime: If an employee or a guest engages in illegal actions (such as theft), this insurance option will cover your losses.
  • Utility interruption: If you have a service outage (e.g. no running water), you will be provided compensation for any losses this problem may have caused.

Each type of motel needs a different type of insurance. Discuss with a professional company like Bluewell Insurance Brokers and see which options are best suited for your motel. The proper insurance will make the difference between a successful business and bankruptcy.

Call today on 1300 669 664 or get a quote here.