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Hotel Insurance
Running a hotel involves a wide range of responsibilities and risks. From protecting your premises, furnishings and equipment to considering guests, employees, stock and business interruption, having appropriate insurance in place can help protect your business against a range of insured events.
At 1st Choice Insurance, we can help you explore hotel insurance designed around your individual business and circumstances. Whether you operate an independent hotel, boutique hotel, guest house, bed and breakfast, serviced accommodation or a larger hotel operation, our team can discuss your requirements and help you understand the insurance options available.
We have access to a wide panel of insurance providers, allowing us to explore different cover options based on your hotel’s premises, activities, employees, facilities and other relevant factors.
Get a Hotel Insurance Quote
Looking for hotel business insurance?
Our team can discuss your hotel and help you consider the types of commercial insurance that may be appropriate, including buildings, contents, public liability, employers’ liability and business interruption cover.
Call 03301 081615 or use our quote form below.
What is Hotel Insurance?
Hotel insurance is a type of commercial insurance designed around the risks associated with operating a hotel or guest accommodation business.
Hotels can have a variety of insurance requirements because they may have buildings, guest bedrooms, communal areas, catering facilities, employees, equipment, stock and members of the public using the premises.
Depending on the business and policy selected, hotel insurance can include a combination of covers such as:
- Buildings insurance
- Contents and equipment insurance
- Public liability insurance
- Employers’ liability insurance
- Business interruption insurance
- Stock cover
- Money cover
- Legal expenses cover
- Cyber insurance
- Loss of licence cover, where available
- Guest effects cover, where available
There is no single hotel insurance policy that is suitable for every business. The cover available will depend on your individual circumstances, the activities you undertake and the insurer’s underwriting criteria.
Why Do Hotels Need Business Insurance?
Hotels can face a variety of risks because of the combination of premises, employees, guests, equipment and services involved in running the business.
For example, a hotel could experience damage to its premises following an insured event, an accident involving a guest or employee, theft of business property or an interruption to trading.
Having appropriate insurance in place can provide financial protection against certain insured events and claims, subject to the terms, conditions, exclusions and limits of the policy.
When arranging hotel insurance, it is important to consider the full range of activities carried out by your business.
This could include:
- Guest accommodation
- Food and drink service
- Bars and restaurants
- Conferences and events
- Weddings and functions
- Leisure facilities
- Gyms and swimming pools
- Outdoor areas
- Car parks
- Commercial kitchens
- Entertainment
- Licensed activities
Providing accurate information about your hotel allows insurers to assess the risks and determine the terms and cover available.
What Does Hotel Insurance Cover?
The exact cover available will depend on the policy selected and the circumstances of your hotel. Options can include:
Buildings Insurance
Buildings insurance can cover the structure of your hotel against specified insured events.
Depending on the policy, this can include areas such as:
- Walls and roofs
- Floors and ceilings
- Fixed fixtures and fittings
- Reception areas
- Guest bedrooms
- Communal areas
- Kitchens
- Bathrooms
- Outbuildings
- External structures
Buildings insurance can be particularly relevant if you own the hotel premises.
Contents & Equipment Insurance
Hotels can contain significant amounts of furniture, equipment and other business assets.
Contents and equipment insurance can provide cover against specified insured events for items such as:
- Bedroom furniture
- Beds and mattresses
- Televisions
- Reception equipment
- Kitchen equipment
- Laundry equipment
- Cleaning equipment
- Office equipment
- Fixtures and fittings
The policy will set out what is covered, along with applicable limits, exclusions and excesses.
Public Liability Insurance
Hotels regularly have guests, visitors, contractors and other members of the public on their premises.
Public liability insurance can provide cover for certain claims made against your business following injury to a member of the public or damage to their property arising from your business activities.
For hotels, this can include consideration of risks associated with:
- Guest bedrooms
- Reception areas
- Restaurants and bars
- Function rooms
- Car parks
- Gardens and outdoor areas
- Leisure facilities
Public liability insurance is not generally a legal requirement, but it can be an important consideration for businesses that interact with the public.
Employers’ Liability Insurance
If you employ staff, employers’ liability insurance is a legal requirement in the UK.
Hotels can employ a wide range of staff, including receptionists, cleaners, chefs, kitchen staff, maintenance workers and management.
Employers’ liability insurance is designed to provide cover for certain claims made by employees for injury or illness arising from their employment.
Business Interruption Insurance
An insured event affecting your hotel could potentially result in an interruption to normal trading.
For example, significant damage caused by an insured event could prevent some or all of your premises from being used while repairs take place.
Business interruption insurance can provide cover for certain financial losses following an insured event, subject to the policy terms.
Depending on the policy, cover may take account of areas such as loss of income or additional costs incurred to reduce the impact of the interruption.
Stock Insurance
Hotels may hold a variety of stock, particularly where they provide food and drink.
Stock insurance can provide cover for specified insured events affecting items such as:
- Food
- Drink
- Cleaning products
- Toiletries
- Linen
- Consumables
- Other business stock
If your hotel relies on refrigerated or frozen stock, additional cover for deterioration or spoilage may also be available depending on the insurer and policy.
Legal Expenses Insurance
Legal expenses insurance may be available to provide cover for certain legal costs associated with specified disputes or legal matters.
Depending on the policy, this could include areas such as employment disputes, contract disputes or certain regulatory matters.
The specific legal expenses covered will depend on the policy wording.
Cyber Insurance
Hotels increasingly rely on digital systems for bookings, payment processing, guest records, websites and day-to-day administration.
A cyber incident could affect these systems and potentially result in costs or disruption to the business.
Cyber insurance can provide cover for certain cyber-related incidents, subject to the policy terms.
This can be particularly relevant to hotels handling customer information and online payments.
Hotel Insurance for Different Types of Accommodation
Hotel insurance can be arranged for a variety of accommodation businesses.
Independent Hotels
Independent hotels can have a wide range of insurance requirements depending on their size, facilities and services.
We can discuss your premises, employees, guest accommodation and other activities to explore available cover.
Boutique Hotels
Boutique hotels may have individual features, higher-value furnishings or additional facilities that need to be considered when arranging insurance.
Guest Houses & Bed and Breakfasts
Guest houses and B&Bs may require insurance for their buildings, contents, guests, employees and other business activities.
The cover required will depend on how the property is operated and the services provided.
Serviced Accommodation
Businesses providing serviced accommodation can have different insurance considerations from traditional hotels.
The insurer may need information about the type of accommodation, how it is occupied and the services provided.
Hotels with Restaurants and Bars
If your hotel also operates a restaurant, bar or other food and drink facility, these activities should be included when arranging your insurance.
This allows the insurer to consider the additional risks associated with food preparation, alcohol sales, customers and commercial kitchen equipment.
Hotels Hosting Events and Functions
Hotels that host weddings, conferences, parties or other events may need to consider the additional risks associated with larger numbers of guests and temporary activities.
Make sure all relevant events and activities are disclosed when arranging your policy.
Hotel Insurance for Additional Facilities
Many hotels offer facilities and services beyond accommodation.
These can include:
- Restaurants
- Bars
- Function rooms
- Wedding venues
- Conference facilities
- Gyms
- Swimming pools
- Spas
- Saunas
- Children’s play areas
- Outdoor activities
- Car parks
These facilities can affect the insurance requirements of your business.
If your hotel provides additional services or facilities, tell your insurance adviser when requesting a quote so that these can be taken into account.
Frequently Asked Questions About Hotel Insurance
Do hotels need public liability insurance?
Public liability insurance is not generally a legal requirement, but it can provide cover for certain claims made by members of the public following injury or damage to property arising from your business activities.
For a hotel with guests and visitors regularly using its premises, public liability insurance can be an important consideration.
Do hotels need employers’ liability insurance?
If you employ staff, employers’ liability insurance is generally required under UK law, subject to certain exemptions.
This can apply to hotels employing full-time, part-time or temporary staff.
Does hotel insurance cover guests’ belongings?
Some policies can include guest effects cover for specified loss or damage to guests’ belongings.
The cover, limits and exclusions vary between policies, so you should check the terms of the insurance arranged.
Does hotel insurance cover business interruption?
Business interruption cover can be available for hotels and can provide protection against certain financial losses following an insured event that interrupts trading.
The policy will set out the circumstances in which cover applies and any applicable limits or indemnity period.
Can hotel insurance cover weddings and events?
Insurance can potentially cover hotels that host weddings, conferences, parties and other events.
The availability of cover will depend on the nature and scale of the events, so these activities should be disclosed when arranging your insurance.
Can I insure a guest house or B&B?
Insurance can be arranged for guest houses and bed and breakfasts, subject to insurer criteria.
The cover required will depend on the property, number of rooms, services provided, employees and how the accommodation operates.
Can I get hotel insurance for a small independent hotel?
Hotel insurance is not limited to large hotel groups. Small independent hotels can also arrange commercial insurance based on their individual circumstances.
Can hotel insurance cover multiple properties?
Insurance for multiple hotel locations can potentially be arranged under a single policy, depending on the insurer and business circumstances.
If you operate several hotels or accommodation businesses, tell us about all of your locations when requesting a quotation.
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