Finding an insurance company that can provide a range of coverage for hotel owners is not extremely difficult, but finding an insurance company that truly understands the unique and incredibly complex needs of the hospitality industry is a different story. In addition to basic fire, flood, property damage and liability protection, here are a few types of insurance hotel owners might consider purchasing.
1) Document Coverage
In a world moving more and more towards cloud-based storage, documents are (at this moment) still an invaluable part of a hotel’s revenue and inventory. From credit card receipts to accounts receivable records, documents are still an important part of doing business. Whether you choose to opt for this coverage or not, it’s important to ensure your insurer has coverage like this available.
2) Food Spoilage Coverage
For hotels that offer simple meals such as a continental breakfast, this may not be a huge concern. For resort hotels, however, particularly those in remote locations where guests are dependent on meals from the hotel, the loss of power leading to food spoilage can represent a huge financial loss. Hotel owners shouldn’t have to think about the kind of coverage that may not occur to them, it should be available and offered by a good agent.
3) Crisis Coverage
Crisis coverage covers both real and manufactured crises. Real crises range from violent acts committed by guests or employees to major scandals such as embezzlement of funds by an executive or legitimate safety concerns on a single property. Manufactured crises are those which are not major or legitimate issues, but are turned into major scandals by being misreported or misrepresented. Either of these situations can have a hugely detrimental effect on a hotel’s bottom line. Crisis coverage can help cover the costs of hiring a crisis management firm to mitigate the fallout from potential scandal – either real or imagined – and also covers extenuating costs, such as coverage for group counseling in the wake of violence or other traumatic events.
4) Abuse or Molestation
Many modern hotels have onsite child care or special activities for children, supervised by hotel employees. In today’s climate, any business that provides care for children can be at risk, no matter how carefully they pre-screen employees. Abuse or molestation coverage provides additional coverage for injuries and defense costs that can arise from accusations made against child care providers and the hotel that employs them.
Not every hotel is going to need all of these types of coverage, but a good insurance company will have a broad range of coverages to choose from. What’s more, a good insurance company will have knowledgeable staff that truly understand the unique needs of the hospitality industry and can help you find the right coverage for your individual property. When choosing an insurance company, it’s important to look for a company that can provide far more than just the basics; and also an agent that will sit down with you and look over all of the services that your hotel provides to help tailor a package just for you that meets all of the unique and individual needs of each of your properties.