Lodging Places Insurance FAQ Information
Lodging Places Insurance FAQ. 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.
What Is A Lodging Place?
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:
- Bed and Breakfast Inns
- Boarding Houses
- Fraternity Houses
- Guest Houses
- Motor Inns
- Ski Lodges
- Sorority Houses
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.
What Kinds Of Insurance Do Hotels, Motels, Airbnb & Inns Need?
- At the minimum, hotels, motels, Airbnb & inns need general liability insurance.
- If they have employees they will need workers compensation in most states.
- If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
- There are also other specialty coverages and endorsements that might be needed based on their operations.
Following are some suggested commercial policies and coverages applicable for hotels, motels, Airbnb & inns:
You can skip to the following types of hotels, motels, Airbnb & inns small business insurance policy coverage types using these links:
Hotels, Motels, Airbnb & Inns Commercial Insurance Policies:
- What kinds of commercial package policies do hotels, motels, Airbnb & inns need?
- What kinds of commercial property insurance do hotels, motels, Airbnb & inns need?
- What kinds of inland marine insurance do hotels, motels, Airbnb & inns need?
- What kinds of crime insurance do hotels, motels, Airbnb & inns need?
- What kinds of surety coverage do hotels, motels, Airbnb & inns need?
- What kinds of commercial liability insurance do hotels, motels, Airbnb & inns need?
- What kinds of professional liability insurance do hotels, motels, Airbnb & inns need?
- What kinds of commercial auto insurance do hotels, motels, Airbnb & inns need?
- What kinds of workers compensation insurance do hotels, motels, Airbnb & inns need?
- What kinds of excess and umbrella insurance do hotels, motels, Airbnb & inns need?
- What kinds of specialty insurance do hotels, motels, Airbnb & inns need?
What Kinds Of Commercial Package Policies Do Hotels, Motels, Airbnb & Inns Need?
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:
- Businessowners Policy (BOP)
- Commercial Package Policy (CPP)
What Kinds Of Commercial Property Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Business Personal Property
- Personal Property of Others
- Improvements and Betterments
What Kinds Of Inland Marine Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Accounts Receivable Coverage
- Animal Mortality Coverage
- Bailee Customers Coverage
- Broadcasting Tower/Equipment Coverage
- Builders Risk Coverage
- Commercial Articles Floaters
- Contractors' Equipment Coverage
- Difference in Conditions (DIC) Coverage
- Electronic Data Processing Equipment Coverage
- Fine Arts Coverage
- Mobile Agricultural Machinery and Equipment Coverage Form
- Scheduled Property Coverage
- Signs Coverage
- Theatrical Property Coverage
- Transportation Coverage
- Valuable Papers and Records Coverage
What Kinds Of Crime Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Computer and Funds Transfer Fraud Coverage
- Employee Theft Coverage
- Forgery or Alteration Coverage
- Inside The Premises-Theft of Money and Securities Coverage
- Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
- Money Orders and Counterfeit Money Coverage
- Outside The Premises Coverage
What Kinds Of Surety Coverage Do Hotels, Motels, Airbnb & Inns Need?
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:
- Contract-Performance of Service or Supply Bonds
- License and Permit Bonds
- Miscellaneous Surety Bonds
What Kinds Of Commercial Liability Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Commercial General Liability (CGL) Coverage
- Employee Benefits Liability Coverage
- Employment-Related Practices Coverage
- Liquor Liability Coverage
- Owners and Contractors Protective (OCP) Liability Coverage
- Special Events Liability Coverage
What Kinds Of Professional Liability Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Beauticians and Barbers Professional Liability Coverage
- Errors and Omissions - Miscellaneous Coverage
- Law Enforcement Liability Coverage
- Miscellaneous Medical Professional Liability Insurance Coverage
What Kinds Of Commercial Auto Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Auto Medical Payments
- Business Auto Coverage
- Collision Coverage
- Comprehensive Coverage
- Garagekeepers Coverage
- Hired & Non-owned Auto Coverage (HNOA)
- Uninsured/Underinsured Motorists Coverage
What Kinds Of Workers Compensation Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Excess Workers Compensation Self-Insurance Bonds
- Longshore and Harbor Workers' Compensation Act Coverage
- Stop-Gap or Employers Liability Coverage
- Voluntary Compensation Coverage
- Workers Compensation and Employers Liability Coverage
What Kinds Of Excess And Umberlla Insurance Do Hotels, Motels, Airbnb & Inns Need?
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:
- Excess Liability Coverage
- Umbrella Coverage
What Kinds Of Specialty Insurance Do Hotels, Motels, Airbnb & Inns Need?
The 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:
- Business Legal Expense Coverage
- Cable TV Liability Coverage
- Cyber Liability Coverage
- Data Security Breach Coverage
- Directors and Officers Liability Coverage
- Educators Legal Liability Coverage
- Environmental Impairment Liability Coverage
- Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
- Identity Theft Insurance Coverage
- Lead Paint Contamination Coverage
- Medical Personnel Service Agency Liability Coverage
- Recreational Trail Liability Coverage
- Risk Retention Group Liability Coverage
- Solar Energy System Coverage
- Tax Liability Coverage
- Terrorism Insurance Coverage
- Underground Storage Tank (UST) Liability Coverage
- Unmanned Aerial Vehicles (UAV) (Drones)
- Weather Coverage
Lodging Places Insurance FAQ - The Bottom Line
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.
Frequently Asked Questions By Industry
Learn about the coverages available for specific industires with the Insurance FAQs below:
- Artisan Contractors
- Automotive Sales and Service
- Aviation Risks
- Boats and Yachts
- Construction Contractors
- Eating and Drinking Establishments
- Educational Institutions
- Farm and Ranch
- Financial Institutions
- Food Processing Plants
- General Liability
- Government, Institutions and Utilities
- Health Care Providers
- Lodging Places
- Logging, Mining and Quarries
- Printing Services
- Real Estate and Rental Property
- Recreation and Sports
- Retail Food and Beverage
- Retail Stores
- Services Businesses
- Trucking and Transit
- Warehouses and Storage
- Wholesalers and Distributors