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Hotel Motel Insurance North Carolina Policy Information

NC Hotel Motel Insurance

Hotel Motel Insurance North Carolina. Hotels provide lodging to the general public. Rooms may be rented on a short-term or long-term basis. The hotel may offer a bar or lounge (sometimes with live entertainment), beauty or barber shops, child or pet care, full-service restaurant, gift shops, laundry, and dry-cleaning, limousine services, spas, or various recreational attractions. Many hotels also offer meeting facilities for seminars and conferences.

Motels tend to be less than four stories high with doors opening to the outside rather than the inside of the buildings.

The hospitality industry is not immune from litigation, and hotels and motels are at risk to facing claims for liability that often lead to bankruptcy or at least financial distress for the hotel owner or company. For instance, when a hotel manager went into labor while on duty in North Carolina City in 2011, giving birth to her child in one of the hotel's guest rooms, she filed a $10 million lawsuit against the hotel.

In her claim, the manager said that her supervisors rushed her out of the establishment following the birth, did not grant her maternity leave, and terminated her employment a short time afterwards. Scenarios such as this one are not uncommon.

Hotel motel insurance North Carolina protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and protect your property now.

Hotels, motels, and other businesses in the hospitality industry face various risks that can lead to financial trouble. Even something as innocuous as an unauthorized guest in a hotel room can lead to litigation if the guest becomes injured while on the premises.

NC hotel owners must be prepared for any potential situation that arises, since they can be held liable for anything that happens on their properties. The hospitality industry is faced with many high-profile claims, so it makes sense to protect your individual business with a comprehensive hotel motel insurance North Carolina policy to cover your financial obligation if a suit is decided against you.

Insurance for Hotel and Motel Owners - What's Covered?

Although your specific hotel motel insurance North Carolina insurance needs are based on your particular circumstances, there are some types of universal hotel motel insurance North Carolina coverage that all hotel/motel owners and businesses need. Some of these include:

  • General liability insurance. This type of insurance protects your business from loss due to bodily ideury or property damage from guests who stay on your property.
  • Commercial auto liability coverage. If your hotel offers shuttle serve or limo service and owns the vehicles used for the service, then you need NC commercial auto insurance to cover any potential liability caused during the use of the vehicle. NC state miniums are $15,000 / $30,000 for liability. Compare that to your risk tolerance to make sure you buy enough coverage to protect your business' finances in the event of a claim.
  • Worker's compensation insurance. Protect your employees with worker's compensation insurance. Worker's comp provides monetary compensation and medical payments for workers who are injured or become ill due to a work-related issue. NC requires that employers provide this insurance for all non owners.
  • Liquor liability coverage. Many hotels serve alcoholic beverage or operate bars on their premises. Liquor liability coverage protects you from losses due to the actions of intoxicated guests who cause bodily ideury to themselves or others or who cause property damage.
  • Foodborne illness coverage. If you offer room service or have a restaurant on site, then foodborne illness can become an issue. Foodborne illness policies or riders to your business insurance policy can pay for claims stemming from serving food contaminated with salmonella or E.coli, among others.
  • Cyber liability coverage. Data management or computer breaches are covered by cyber liability insurance. This protects your hotel business from claims arising from illegal access to your guests' names, credit card data, and other information.
  • Premises pollution coverage. When pollutants such as mold spores cause ideury to employees or guests, this coverage pays for punitive damages, cleanup costs, and medical costs for those affected.
  • Employment practices coverage. If an angry former worker or current employee sues you for an alleged employment infraction, then this insurance helps pay associated costs.

Protecting Your Assets With NC Hotel Motel Insurance

Protecting your hotel's assets protects the investment you have made in the property. Some coverage types to consider include:

  • General property insurance. Protect your hotel's decor, carpeting, furnishings, electronics, and other assets with general property insurance. This hotel motel insurance North Carolina coverage provides compensation for property that is lost, stolen, vandalized, or otherwise destroyed.
  • Equipment breakdown insurance. If your equipment fails, your business may come to a standstill without equipment breakdown insurance. This is true of everything from computer equipment needed for guest reservations to equipment in the kitchen or HVAC system throughout your business. This insurance kicks in and ensures that you have the funds needed to make needed repairs or replace equipment.
  • Business interruption insurance. If a covered peril forces the closure of your business on a temporary basis, this coverage ensures that you have adequate income for paying salaries and expenses.
  • Utility interruption insurance. If a serious utility outage causes your business to lose money, then this hotel motel insurance North Carolina provides loss compensation.
  • Hotel guest relocation rider. If a utility outage or other covered peril necessitates relocating guests, this type of insurance can provide compensation for the losses sustained as a result.

These are some basic coverage types for hotels; the list of potential policy addendums and add-ons is lengthy. Your particular hotel motel insurance North Carolina policy should be tailored to your needs, risk tolerance, and assets that you need to protect. Work with an agent to determine what your specific risks are and how you can protect yourself from potential loss.

North Carolina Motel's And Hotel's Risks & Exposures

Premises liability exposure is high due to the number of guests and visitors. The motel should meet all life safety codes to assure guest safety. To prevent trips, slips, and falls, the motel 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.

Swimming pools, exercise facilities, and playgrounds should be limited to guest use only, and be properly maintained. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. Access to rooms should be through an electronic keying system that changes codes for each guest to prevent unauthorized access. Employees who have access to universal access codes and cards should be monitored for the protection of the guests. Personal injury losses may occur due to alleged wrongful eviction, invasion of privacy, or discrimination.

Products liability exposures can be high if the motel has a restaurant or lounge. Employees should be trained in the proper handling of consumables to prevent foreign objects in food, food poisoning, or the spread of other transmissible diseases. Other product liability exposures can arise from vending machines and gift shops.

Workers compensation exposure is moderate. Cleaning and maintenance operations can result in lung, eye or skin irritations and reactions. Slips and falls, back injury, hernias, sprains and strains from lifting or working at awkward positions are common. The parking lot and sidewalk snow removal may be handled by employees or outside contractors. If employees are responsible, there are potentials for strain and fall injuries. Food preparation operations can result in cuts, scrapes, and burns. Interaction with guests can be difficult. Employees should be trained in dealing with rowdy guests. Animals owned by guests can bite, scratch, or kick workers.

Property exposures are due to the high combustibility of contents and the multiple sources of ignition. Electrical wiring, plumbing, cooling, heating, and laundering systems must be adequate and meet current code. Hard-wired smoke detectors should be installed in all guest rooms and common areas. Cooking equipment must meet all NFPA requirements.

Flammables should be stored properly. If there is a pool, chemicals used to treat it should be stored separately. Business Interruption exposure can be substantial due to lack of backup facilities and the seasonality of some motel operations.

Equipment breakdown exposures include breakdown losses to the heating and air conditioning systems, cooking equipment, laundry equipment, hot water systems, electrical control panels, and other apparatus. Breakdown and loss of use could result in a significant loss, both direct and under time element, if replacement parts are unavailable or repair time is lengthy.

Crime exposure includes employee dishonesty and money and securities. References and background checks should be conducted on all employees. Cashiers' drawers should be kept stripped with regular deposits made throughout the day. A minimal amount of cash should be kept overnight. Monetary transactions must be monitored and audited on a regular basis to prevent employee theft.

Money-handling responsibilities should be separated, with no employee handling both receivables and disbursements. Guest property coverage is important to protect guests' property from theft by employees, other guests, or trespassers. Coverage is provided for each room and for items in lock deposit box. Controls should be in place to verify guest identity before permitting access to lock boxes.

Inland marine exposure comes from accounts receivable if the motel bills for services, computers, and valuable papers and records for contracts, guests' and suppliers' information. Duplicates must be made and stored off site for easy restoration. There may be commercial articles floater for cameras, audiovisual equipment, and musical instruments, contractors' equipment for exterior maintenance, or a special floater for items used off site.

Business auto exposure is generally limited to hired and non-owned liability for employees running errands. If there are owned vehicles, such as those used for servicing the property, any driver should have an appropriate driver's license and an acceptable MVR.

Vehicles must be maintained and records kept in a central location. Some motels may contract with a service to transport clients to and from their premises. If so, it is important to determine the contractual relationship between the motel and the transportation service.

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.


Lodging Insurance

The hotels, motels, and other lodging places industry is a highly competitive and fast-paced industry, with businesses constantly striving to attract and retain customers. This means that hotels, motels, and other lodging places need to be prepared for any potential risks or challenges that may arise. One way to do this is by obtaining business insurance, which can provide protection against a range of different risks.

One of the main reasons why the hotels, motels, and other lodging places industry needs insurance is to protect against property damage. These businesses rely on their physical assets to generate revenue, so any damage to these assets can have serious financial consequences. Business insurance can provide coverage for damages caused by natural disasters, fires, and other incidents, helping hotels, motels, and other lodging places to repair or replace damaged assets.

Another reason why the hotels, motels, and other lodging places industry needs insurance is to protect against liability claims. These businesses are responsible for the safety and well-being of their guests, so any incidents or accidents that occur on their premises could result in liability claims. Commercial insurance can provide coverage for these types of claims, helping hotels, motels, and other lodging places to cover the costs of legal fees and settlement payments.

Finally, the hotels, motels, and other lodging places industry needs commercial insurance to protect against loss of income. These businesses rely on a steady stream of revenue to stay afloat, and any disruptions to this revenue could have serious financial consequences. Insurance can provide coverage for loss of income caused by unforeseen events, such as natural disasters or pandemics, helping hotels, motels, and other lodging places to stay afloat during difficult times.

Overall, the hotels, motels, and other lodging places industry needs insurance to protect against a range of different risks and challenges. By obtaining the right coverage, these businesses can ensure that they are prepared for any potential setbacks and can continue to thrive in a highly competitive industry.

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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Also find NC local small businesses by General Liability Class Code and learn about North Carolina small business insurance requirements for general liability, business property, commercial auto & workers compensation including NC business insurance costs. Call us (704) 703-1413.

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