Hotel and Hospitality industry
Working in the hospitality industry comes with a variety of perks and advantages. You not only get to know your customers as guests and friends, but you also provide them with a cozy shelter while they are in town. After a stressful day at the office or on the road, they frequently look forward to coming to your hotel so that they can relax after being away from home for so long. When searching for a company that will ensure your hotel or motel, it is important to take into consideration not only the cost of the policy, but also the coverage that the policy provides. The cost of your insurance policy will change depending on factors such as whether or not you have a swimming pool, whether or not the units come equipped with kitchenettes, whether or not the building (or buildings) has elevators, and even how much you charge per night for your accommodations.
Like any other business, the hospitality industry has its share of lawsuits and litigation-related risks. Several real-life claims can be found online, as can numerously examples of those claims. In this article, we’ll look at a few of these claims. Most lawsuits claim some form of negligence. It doesn’t matter how many times a customer sues you if they can show that you were negligent in maintaining your property. Claims for slip and fall injuries are among the most common in the United States. Hotel manager gave birth to her child in one of the hotel’s guests rooms while on duty in NYC in 2011 and filed a $10 million lawsuit against the hotel. What would happen if you were to find yourself in this situation without insurance? The manager’s main grievance was that her boss hurried her out of the building after she gave birth, refused to grant her maternity leave, and then fired her shortly thereafter (6 months give or take). These kinds of situations aren’t unheard of. To protect yourself from such lawsuits, you might ask: “OK, but how much would it cost?”
There are a handful of coverages that are necessary in the hospitality industry. These include Guests’ Property Coverage, Business Crime Insurance, Business Liability Insurance, and Business Property Insurance.
Business Liability Insurance:
There are a few different kinds of legal exposures that are exclusive to the hospitality industry. Hotel insurance typically includes liability coverages for these risks, in addition to the risks that are faced by the owners of any business.
Property coverages hotel and motel insurance policy:
The structural components and the functional bases of each building for your business will have its appropriate coverage. Your property coverage is determined by various factors including but not limited to the materials used in building and roofing. Whether your building is fire resistive, inclusion or exclusion of fire safeguards – sprinklers, self-extinguishers, central or local fire, burglar alarms. Any property damage due to not at fault incidents are covered excluding natural disasters. Natural disasters must be separately added for extra coverage which could include Flood, Earthquakes, or Volcanoes.The following are also covered under this policy: any damage sustained by your business including loss of property or income and extra expense for either 12, 18 or 24 months, guest’s property on premises, accounts receivable, credit card slips, accidental discharge of fire suppression systems or water systems, outdoor signs, canopies, fences, elevators, escalators, landscaping, increased cost of construction due to ordinance of law, or similar aspects.
- Manager’s Cottage: will carry similar coverage but will most likely won’t heavy coverage due to the square footage of the space provided. This will also include the liability incase the manager sues the business for any negligence.