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Hotel And Guesthouse Insurance

Why Use Quotesearcher

  • One stop solution for all your insurance needs
  • Only deal with UK leading insurers
  • No need to shop around to find the best deal

What is Hotel Insurance?

Running a hotel or guesthouse carries its own unique set of risks, challenges and rewards. Hotel insurance is designed to protect you and your business against anything from weather damage to professional liability, and you can tailor your policy to fit your specific needs.

With hotel insurance, there are 3 key areas to consider protecting:

  • Your property / premises – these are covered by the buildings and contents insurance
  • Staff and guest – pubic and employer’s liability insurance means that if a guest of member of staff is injured whilst on your premises, you will be covered for any compensation claims they may bring
  • Income – this will be covered by business interruption insurance, so you will still be earning an income even if your hotel is undergoing repairs.

Do I Need Hotel or Guesthouse Insurance?

Legally, any guesthouse or hotel owner is required to have guests contents insurance, as part of the 1956 Hotel Proprietors Act.

However, it is advisable to have a hotel insurance policy in place, to protect you and your business in the event of an accident or a liability claim.

The level of risk associated with your hotel – and therefore the level of cover required – is affected by various factors:

  • Number of rooms
  • Annual turnover
  • Members of staff
  • Serving of food
  • Type of building
  • Events the hotel may host

Hotel Insurance Features

The features of hotel insurance policies vary depending on the insurer.

We have drawn up a list of the most common policy features for you to consider below.

You may want some of the following as part of your policy:

  • Public liability – usually comes with a limit of £2 million as standard. If you have an on street seating area or hold functions open to non guests, you may need to have a higher level of cover (depending on your council) of up to 5 or even 10 million
  • Employers liability – a legal requirement for any employer, and normally comes at £5 million as standard. This will cover any compensation claim costs made by an employee.
  • Buildings insurance – need to make sure you accurately calculate the rebuilding cost. Include all outbuildings, boundary walls, swimming pools, fitted kitchens, fitted bathrooms etc. as well as the cost of the building itself. If you do not do this maths correctly at the start, it could ultimately end up invalidating your insurance policy
  • Conditions of average clause – if you’re building and contents insurance is not high enough, they can reduce your claim by the percentage that you’re underinsured by. So if you insure for 250,000 and it’s really worth 500,000, on a 100,000 claim you could end up with just 50,000
  • Contents insurance – to cover hotel contents, including furniture and other goods, against damage
  • Business interruption – pays your outgoings like rent, wages and any necessary overheads if something happens to stop your business from trading. There is also an indemnity period, which is the length of time business interruption can be claimed for if the property becomes uninhabitable. On a hotel policy, 24 months is standard. When calculating your indemnity period make sure you do not underestimate the time it takes for demolition and debris clearance, architects planning and ultimately the rebuild itself.
  • Guests contents insurance – legal requirement as part of 1956 Hotel Proprietors Act

Hotel and Guesthouse Insurance Extras

  • Personal contents cover – if you or staff live at the hotel, all of you can claim if any of your property is stolen or damaged
  • Legal expenses – this will cover your legal costs in the event of a claim being made against you
  • Loss of license – will protect you against any lost income resulting from your alcohol license being withdrawn

Hotel Insurance Exclusions

As with any type of insurance, there are certain exclusions.

Some of the most common hotel and guesthouse insurance policy exclusions are accidental damage and theft by forced entry, though these vary depending on your insurer.

So if you want to get a quote from our range of expert providers, then make sure you fill out an online quote form today!

Why Use Quotesearcher

  • One stop solution for all your insurance needs
  • Only deal with UK leading insurers
  • No need to shop around to find the best deal