Lodging Places Insurance FAQ. ll 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.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Lodging Places Insurance FAQ.
Read the Lodging Places Insurance FAQ to learn what type of commercial insurance coverages are right for your company - including liability, property, workers compensation and other specialty policies.
According to Webster's Dictionary - a lodging place is, "sleeping accommodations and/or a temporary place to stay."
Lodging Places include - but are not limited to - the following types of businesses:
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
Following are some suggested commercial policies and coverages applicable for sleeping accommodation businesses:
All classifications within this category are eligible for coverage in a commercial package policy (CPP). Some may be eligible for coverage in a businessowners policy.
Because business income protection is an important coverage concern, when the risk is eligible for the businessowners policy, it should be the recommended policy due to the automatic 12 months of income protection provided on an actual loss sustained basis
Types Of Lodging Places Package Policies:
Most lodging facilities have extensive property values that need insurance protection. Some items that, on the surface, appear to be items of personal property are actually considered building, so a property inventory should be prepared and evaluated to properly determine the correct coverage type that applies to each item.
Time element considerations are very important, especially the amount of rental value included in business income.
Fraternity, sorority and older hotel properties should consider ordinance or law coverage as an option.
Motels and hotels located close to large tourist attractions should consider business income from dependent and secondary dependent properties coverage.
Types Of Property Coverages:
Because lodging places offer numerous services and have a wide range of different types of property needing insurance protection, consideration should be given to the commercial inland marine coverages that may provide the most appropriate coverages.
Types Of Inland Marine Coverages:
Guests' property coverage is a unique crime coverage designed specifically for the lodging industry, but it only protects guests' items, so other types of crime coverage are also needed. The most important of these is employee theft coverage. The increased use of computers in this industry also creates the possibility of losses due to computer and funds transfer fraud.
Types Of Crime Coverages:
Certain surety bonds are needed so the proper licenses and permits authorizing a lodging facility to open and operate can be issued. In some cases, other bonds may be needed if the lodging facility is contractually obligated to provide lodging accommodations to government entities.
Types Of Surety Coverages:
Lodging places operate around the clock every day of the year. This means that customers are on premises at times when they are most susceptible to injury. Because many lodging facilities serve alcohol, liquor liability coverage should be considered in addition to general liability coverage.
Types Of Liability Coverages:
Lodging places are a home away from home and therefore must provide many professional services for their clients. It is important to evaluate the professional exposures they may have so that appropriate coverage can be purchased.
Types Of Errors And Omissions (E&O) Coverages:
The lodging facility may have no owned vehicles such that the auto exposure is limited to only hired or non-owned autos (as when employees use their vehicles to run errands). Some facilities may need coverage for the buses or vans that transport guests to and from the airport and/or other activities.
The operation and use of any owned vehicles, valet parking and other related auto services should be identified, evaluated and discussed when analyzing the best coverage for the automobile exposures.
Types Of Business Auto Coverages:
State statutes require that employers provide coverage for on-the-job injuries sustained by their employees. In most cases this is accomplished with a workers compensation policy. Some lodging places can self-insure if they meet state eligibility criteria and requirements and post the appropriate bond.
Lodging places adjacent to navigable waters may have some employees exposed to operations that make them subject to the Longshore and Harbor Workers' Compensation Act.
Types Of Workers Comp Coverages:
Whenever a number of persons might be injured or harmed by a single incident, the insured should have additional liability coverage insurance limits. A fire in a lodging facility can cause multiple fatalities. Without the protection of additional limits of insurance through an excess liability policy or umbrella, the facility could face uninsured lawsuits and damages which could result in their bankruptcy.
If the professional cannot be combined with other coverages, a separate excess liability policy over the professional liability policy, including all amendments and exclusions, should be purchased to provide additional limits on that exposure.
Types Of Excess Liability Coverages:
Some larger lodging facilities and chains own or lease aircraft and use them to travel to and between their other properties and facilities. Some resorts may also use aircraft to transport customers to recreational facilities. The following coverages may be appropriate for them.
Types Of Aviation Coverages:
Lodging places adjacent to the ocean, lakes, rivers or other bodies of water may have boats or yachts to entertain or transport guests. They may also have marina facilities to accommodate guests who arrive by water on their boats or yachts. The following coverages should then be offered.
Types Of Ocean Marine Coverages:
e lodging category includes both large and small operations and the hazards and exposures of each vary depending on the activities offered. One or more of the following specialty coverages may be important in filling a gap in coverage in one of these facilities.
Types Of Specialty Coverages:
There are many commercial insurance policies available for Lodging Places. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring lodging businesses.
Learn about the coverages available for specific industires with the Insurance FAQs below: