Hoteliers need protection from various risks regardless of whether your clients are running a pop-up or 5-star hotel. Your clients have to understand that these risks could cost a lot of money to their operation if they don’t have insurance. But, insuring a hotel comprehensively involves ample knowledge and policies. They can get a Commercial Package Insurance New York. This insurance is tailored to the needs of the hospitality industry.
Here are some coverages that your clients need to protect their business, categorized into two major types and a bonus section for other protection options.
Coverage on Possible Liability Risks
People come and go to hotels every day. Some choose to eat and dine if a hotel has a restaurant or bar while others visit for a special occasion or meeting.
The presence of people in your clients’ hotel indicates that risks such as accidents, food poisoning, and events cancellation are inevitable.
Aside from general liability and worker-related risks (workers’ compensation), your clients should protect themselves from these identified risks specific to the hospitality industry.
Car-Related Accident
Limo, shuttle, or any automobile service is common to your clients’ operation. It’s part of their value-added services, especially if they want to attract more patrons.
Sometimes, the driver and the passenger (hotel guests) can get into accidents. Regardless of whether it’s a scratch or major injuries, your client should have the minimum liability coverage.
Food-Related Diseases
A restaurant is most often a part of a hotel operation. If so, your clients are at risk of getting sued for foodborne diseases.
Food poisoning or contamination could make the hotel guests sick. The worst is death due to extreme food allergic reactions. Still, your clients have to ensure they have the right insurance coverage.
Alcoholic Beverages
Aside from food, your clients might offer wine, beer, and other alcoholic drinks to guests. Thus, intoxicated guests can damage properties or cause harm to people, including themselves.
If others are hurt during these incidents, they can sue your clients. These legal battles are stressful and expensive, especially if the complainant is popular or high-profile.
Data Breach
Online booking is a convenient way for guests to check available rooms and schedule a check-in. These apps require hotel guests to provide information such as name, address, credit card, and other pertinent data.
A breach of your clients’ data management system will place them at the mercy of criminals. If this incident affects guests in any way, your clients face litigations and penalties. Cyber liability insurance can protect them from these costs.
Employment Practices
Workers’ compensation insurance covers accident-related medical costs. However, when your clients’ employees sue for unfair treatment or harassment, they won’t be covered.
What does the client need, then? Employment Practices insurance will cover litigation costs arising from employees suing for discrimination and other unfair employment practices.
Protection on Business Assets
Hotel business assets are expensive investments for your clients. Thus, they should protect these with the right coverage. What are the risks that your clients face when they own a hotel?
Disasters
Fire, theft, and severe weather conditions can cause damage to your clients’ properties. The worst part is that the hotel could become inhabitable for a period. The operation would cease.
Thus, your clients must rebuild their hotel at the soonest possible time, and they would need insurance to make this possible. This is where general property insurance kicks in.
Even though your clients are high-profiles and have the necessary money to rebuild, having insurance is far more practical.
Business Interruption
In connection to the effects of disasters, business interruption is an unavoidable circumstance. Thus, your clients should protect themselves from loss of income during the rebuild and repair period.
Service Interruption
Equipment failure can make hotel guests angry because they can’t check online booking or request a refund. Utility outages can give your hotel negative reviews. All of these are service interruption risks.
Your client can protect themselves if they have equipment breakdown insurance or utility coverage. Either way, these policies will help your clients repair their equipment at the least cost and the soonest time possible.
Other Protection Options
In extreme circumstances, your clients might not be fully covered. To address this, they can include these policies in the hotel insurance package:
- Umbrella Coverage – when the primary insurance limit has been reached, this provides additonal protection
- Guest Relocation – covers when your clients need to relocate their guests
- Even Cancellation – covers lost revenue
Given this information, your clients can have at least 6 basic policies under the package. These would be property coverage, equipment breakdown, general liability, umbrella coverage, worker’s compensation, and business interruption.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
