Bed And Breakfast Insurance Michigan Policy Information
Bed And Breakfast Insurance Michigan. Many people, whether they are traveling for business or enjoying a vacation, much prefer the cozy and more personal atmosphere a bed and breakfast can offer to the thought of staying in a hotel. These small establishments provide not only rooms but also, as the name suggests, breakfast.
Bed and breakfast inns provide short-term lodging with a limited number of rooms. There may be common areas for guests to congregate, such as a living room, backyard, or porch. Often, the inns are converted dwellings or historical facilities that offer a romantic or rustic atmosphere.
Some are located in boats or lighthouses. Breakfast is included in the lodging charge, and other meals may or may not be offered. Some will have a full restaurant operation available to the general public, while others will serve only guests.
The inn can be an extension of a private dwelling with a room or rooms available, while others are full-time operations.
Limited recreational facilities may be available. If the inn offers rooms through both in-house and third-party websites, all room charges, including mandatory gratuity charges or "resort fees," must be disclosed to prevent allegations of deceptive advertising practices.
Websites should clearly state whether the facility and its guest rooms can accommodate those with disabilities.
Whether you are considering opening a B&B - and have perhaps already found the perfect property - or you already own and operate a bed and breakfast, you will already know that these establishments can easily grow to be successful small businesses to which guests return time and time again.
B&B owners also, on the other hand, face numerous risks. A multitude of unforeseen circumstances can put your business in jeopardy unless your MI B&B is armed with a comprehensive insurance program. What types of bed and breakfast insurance Michigan should be put in place, and why?
Bed and breakfast insurance Michigan protects your inn from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Why Do Michigan Bed And Breakfasts Need Insurance?
While you will do everything in your power to build a customer-oriented business and run a smooth operation, bed and breakfast owners should never overlook the fact that many things can go wrong. The fact that most B&B owners live within the property themselves only adds an extra dimension to the risks they face.
Like any other business, a bed and breakfast could, for instance, be affected by an act of nature, such as a hurricane, earthquake, or wildfire. Theft, vandalism, and accidents that cause fires or serious plumbing disasters are further examples of the types of perils that may impact a MI B&B. All these perils have the potential to severely damage your property and force you to temporarily close your establishment.
B&B owners also have to consider the possibility that someone could file a lawsuit against them. Situations that range from employees being injured on the job to unsatisfied customers and accidents in which you inadvertently damage another person's property could lead to costly and time-consuming litigation.
The list of threats your business faces is almost endless, but the one characteristic all perils share is that they saddle you with massive and unplanned costs. When you invest in the right insurance policies, however, you will not have to cover all these expenses on your own.
Besides the fact that some types of insurance are legally mandated, protecting your financial future is the most important reason to purchase the best bed and breakfast insurance Michigan you can.
What Type Of Insurance Do MI Bed And Breakfasts Need?
If you are finding it hard to determine what types of insurance you should carry, that is no surprise - each bed and breakfast has unique insurance needs influenced by factors like the location of your B&B, your number of employees, the size of your business, and the number of guests you receive.
Because of this, it is crucial to consult a commercial insurance broker who specializes in small businesses and who can help you craft the insurance plan that will best protect your bed and breakfast. With that in mind, the following types of bed and breakfast insurance Michigan are vital for B&B establishments:
- Commercial Property: This type of coverage protects you from ruinous financial losses in the event that your bed and breakfast - and its contents - is damaged due to an act of nature, theft, or act of vandalism. With additional business interruption insurance, your business additionally recovers some of the revenue lost due to temporarily closure following a major peril.
- Commercial General Liability: Should your B&B face third party bodily injury or property damage claims, such as if a guest were to fall down slippery stairs, this form of bed and breakfast insurance Michigan helps cover the legal costs, such as attorney fees and settlement expenses, that you may incur in the process. All businesses should carry general liability insurance.
- Innkeepers' Liability: B&B establishments are legally obliged to take reasonable care of their guests' belongings. In the event that items are stolen or damaged while in your care, these policies cover the costs.
- Workers Compensation: Even if you make health and safety a top priority, an employee may always get injured in the workplace. In such cases, workers' comp covers their medical bills and any lost income.
These important types of insurance form the core of your needs as a bed and breakfast owner. However, you may also need additional forms of bed and breakfast insurance Michigan coverage, such as commercial auto insurance. To find out more, talk to a commercial insurance broker.
MI Bed And Breakfast's Risks & Exposures
Premises liability exposure is high due to public access to the facility. The operation should meet all life safety codes to assure guest safety. To prevent trips, slips, and falls, the inn must be well maintained, with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure.
Steps should have handrails, be well lighted, marked, and in good repair. Balconies should be regularly inspected and maintained. Rooms should be treated to prevent pest infestations such as bedbugs. Sidewalks and driveways should be free from defects and cleared of ice and snow in inclement weather. Locks should be changed frequently to prevent unauthorized access.
Lead paint should be contained. Personal injury exposures include allegations of assault, discrimination, false arrest, invasion of privacy, wrongful detention, and wrongful eviction.
Workers compensation exposure is moderate. Cleaning and maintenance operations can result in lung, eye, or skin irritations and reactions. Slip and falls, back injury, hernias, sprains and strains from lifting and working at awkward positions are common.
Food preparation operations can result in cuts, scrapes, and burns. Interaction with guests may involve situations that could produce injuries, such as assault. Employees should be trained in dealing with rowdy guests. Animals owned by guests can bite, scratch, or kick workers.
Property exposures can be high as most bed and breakfast facilities have been converted from older structures to their current occupancy. Conversions should be handled by professionals with appropriate permits and licenses obtained.
Electrical wiring, plumbing, cooling, and heating systems must be updated to current code. If there is commercial cooking, the kitchen should also be upgraded to meet NFPA requirements. Smoking and the use of candles in guests' rooms should be prohibited. Hard-wired smoke detectors should be installed in all guest rooms and common areas.
The age, condition, configuration, size, repair, and roof of the inn affect the potential for loss as damages must be repaired to match the rest of the structure. Business income may be high as there may not be backup facilities available to the owner.
Inland marine exposure is limited to accounts receivable if the inn bills for services, computers, and valuable papers and records for guest and mortgage information. Duplicates of all data should be kept off premises for easy restoration. There may be fine arts for antiques, paintings, or sculptures, or contractors' equipment for maintenance, repairs, and lawn care.
Crime exposure is from employee dishonesty and theft of money and securities. References and background checks should be conducted on all employees. Monetary transactions must be controlled through the use of receipts and regular monitoring.
Guest property coverage provides protection for guests' property from theft by employees, other guests, or trespassers. Access to guest rooms must be limited to those authorized to do so.
Business auto exposure may be limited to hired non-owned liability for employees running errands. If there are owned vehicles, such as those used to service units, any driver should have a valid driver's license and an acceptable MVR. Vehicles must be maintained and records kept in a central location. If guests are transported, the exposure increases.
Bed And Breakfast Insurance Michigan - The Bottom Line
To protect your property, employees and guests, having the right bed and breakfast insurance Michigan coverage is important. To see what policies are available to you, how much coverage you should have - and the premiums - speak to a reputable commercial insurance agent.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Lodging Places Insurance
Find out what types of business insurance that hotels, motels and other lodging places should have to protect their varied operations.
All lodging places provide sleeping accommodations for their patrons. Dining facilities are common because those who sleep will want to eat.
Many facilities also provide extra features such as offering recreational and exercise facilities or possibly meeting rooms and convention arrangements. Property coverage is needed because of high building and business personal property values at risk that are subject to a number of potential causes of loss, chief of which is fire.
Liability insurance is absolutely necessary because of the number of guests and the potential for losses ranging from slips and falls to food consumption to loss of life in the event of a disaster.
Other liability concerns are the additional guest services such as swimming pools, exercise rooms, recreational activities, and bars. Crime losses involving the theft of guest property, inventory and supplies must also be considered.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Accounts Receivable, Computers, Valuable Papers and Records, Employee Dishonesty, Guests Property, Money and Securities, General Liability, Employee Benefits, Liquor Liability, Umbrella, Business Auto Liability and Physical Damage, Hired and Non-Owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Spoilage, Bailees Customers, Commercial Articles Floater, Contractors Equipment, Fine Arts, Signs, Special Floater, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Garagekeepers And Stop Gap Liability.
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