Hotel Insurance Tips

One thing you will want to keep in mind when considering your hotel insurance needs is the scope of coverages that you will want. For example, some questions you might need to ask yourself are: Is my hotel going to be outfitted with safes? Or, how expensive will your guest’s tastes be? Will any of my guests bring a Rolex with them? Is my hotel one which would attract guests who will be wearing expensive jewelry? Do I have fine arts or other expensive decor that I will need specialized coverage? What are my mechanical and electrical breakdown coverage needs?  These kinds of questions will also prevent you from overspending on unnecessary insurance coverage.

Other needs to consider are whether or not you will host conventions in your hotel. Does your hotel have up to date fire escape plans? Do you have all of the necessary safety guidelines in order? These will all have a bearing on your insurance, and actually, certain safety precautions can save you a significant amount of premium.  If your hotel has a sprinkler system you’ll want to make sure that the flow tests are up to date.  This can literally reduce your building premium by 50%.

With the high building values and time involved in reconstruction you’ll also want to make sure that you have adequate coverage for income loss and ordinance and law coverage.  These coverages take care of the additional costs you’ll incur in getting your new building up to current codes and also providing your net profit and expenses during the reconstruction period.

Lastly, make sure you are dealing with a competent agency and insurance company that is familiar with hospitality risks and coverages.  It pays to shop your insurance coverages from time to time but make sure if you’re going to move your insurance that you have references from the new agent.  Just because the price is lower does not mean that you have the proper coverage in place.

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