Hotel chains have reputations attached to them based on the name of the particular franchise. To qualify to use the name of a particular hotel chain name as a franchise, the hotel company expects certain standards to be maintained to preserve the integrity of the brand name. These reputations permeate the public consciousness as well. Comprehensive hotel insurance can help protect hotels from unexpected events involving the hotel, its employees, and its patrons and their property.
Hotel insurance is generally a combination of several basic insurance policies, including a contents policy, business interruption policy, and both public and employers’ liability policies. A comprehensive hotel insurance policy saves hotel owners the need to shop around for multiple policies and possibly pay multiple providers multiple premiums that will almost certainly cost more than a bulk hotel insurance policy.
These different coverages are important to make hotel insurance a complete policy. Contents insurance protects the contents within the hotel from loss or damage. With hotels pushing more and better features to attract guests, contents coverage protects anything from the new flat screen TVs in the rooms to the towels and the sheets that sometimes disappear after a guest checks out. Guests’ property coverage also covers the possessions of guests staying on the property from loss or damage, ensuring the hotel is not on the line for paying for replacements. In addition, franchised hotels are required to hold excess liability insurance.
Business interruption insurance protects the hotel in case of lost business due to loss of facilities from an accident. It covers the loss of profits while the property is being repaired due to insured events like a fire, flood, or other catastrophe. Liability for both the public and employers’ covers accidental injury while on the hotel property. Public liability protects the hotel and its owners from accidental injury claims from a third party, while employers’ liability protects the hotel from employee injuries while on the hotel property. Hotel insurance also frequently covers other legal expenses such as the cost of barristers and witnesses and opponents’ costs if the case is judged in their favor.
Other hotel insurance policy options include theft by employee coverage, customer inconvenience remuneration expenses, delivery and service errors and omissions, and lost key coverage.