Specialty Hotels And Motels Insurance

Specialty hotels and motels insurance is a type of insurance that is specifically designed to protect the unique risks and exposures that these types of businesses face. These risks include everything from property damage and liability to loss of income and interruption of business operations.

One of the main features of specialty hotels and motels insurance is that it provides coverage for the physical property and assets of the business. This includes things like the building and its contents, as well as any equipment or inventory that is used in the day-to-day operations of the hotel or motel. Additionally, specialty hotels and motels insurance can also provide coverage for any loss of income that may occur as a result of a covered event, such as a fire or natural disaster.

Another important aspect of specialty hotels and motels insurance is liability coverage. This type of coverage provides protection for the business in the event that a guest or visitor is injured or suffers property damage while on the property. This can include everything from slips and falls to accidents that occur in the hotel's swimming pool or spa. Additionally, liability coverage can also provide protection for any damage or injury that occurs as a result of the hotel or motel's activities, such as a shuttle service or tour operation.

In addition to these types of coverage, specialty hotels and motels insurance can also provide protection for a wide range of other risks and exposures. This can include things like coverage for loss of business income due to a power outage, coverage for damage caused by acts of terrorism, and coverage for damage caused by cyber attacks. Additionally, many specialty hotels and motels insurance policies can also include coverage for things like employee theft and dishonesty, as well as coverage for loss of data or other sensitive information.

Overall, specialty hotels and motels insurance is an essential type of coverage for any business that operates in this industry. It provides a wide range of protection for the unique risks and exposures that these types of businesses face, and can help to ensure that the business can continue to operate even in the event of a covered loss. Whether you are a small, family-owned hotel or a large, luxury resort, specialty hotels and motels insurance is an important consideration for any business that wants to protect its assets and ensure its continued success.

Property and liability insurance coverage on bars is difficult to place because of hazards, loss history, and clientele. Bars may be located in urban high crime areas or in isolated rural areas both of which makes them theft targets because of the appeal of their liquor inventory and the day's receipts. Liability hazards are the traditional premises slips and falls on premises and in parking lots that are aggravated by liquor-impaired judgment. Many bars offer activities such as dancing, live entertainment, games, and contests that can significantly increase their exposure to loss. All bars have vicarious liquor liability exposures but the degree of the exposure depends on laws in the particular state.

Bed and breakfast inns are homes to their owners and lodging for paying guests. They are popular with tourists who want something different than what is available in regular hotels or motels.

Casinos and gaming risks specialize in offering gambling for adults. They include full-facility hotel/casinos and riverboats but also include pull-tabs and video poker in bars, sports books, bingo halls, and slot machine parlors. Originally limited to the state of Nevada, casinos and gaming risks are now fixtures in many states. High limits crime coverage is often a particular concern because of the amount of cash kept on the premises.

This specialty coverage protects the insured that hosts a catered party, dinner, or celebration event. Coverage applies for the costs incurred when the event is cancelled, postponed, or curtailed. Covered costs are the deposits that cannot be recouped and other contractual obligations that are enforced following the change in plans.

This coverage protects catering services, hotels, and others that provide catered event services to their customers or guests for errors or omissions they make that result in a lawsuit. Coverage applies to only the time of the event. Coverage starts when the event begins and coverage ends along with the event. Coverage applies to all services that the caterer is contractually obligated to supply. Examples of services provided are the band, hall, food, flowers, and parking. Failure to provide services as promised has been known to cause pain, suffering, and humiliation. A poorly handled event can also result in the party that requested the event losing clients and sustaining financial loss.

Incidents such as hurricanes, acts or threats of terrorism, or strikes by teamsters can result in a scheduled convention not having a place to meet, resulting in its cancellation. The cancellation results in the sponsor having to repay partial or full advance registration fees to its members. In some cases, the cancellation results in the loss of a major funding source for the entire year's budget. Coverage is available that pays the sponsor its lost revenue plus returns the registration fee to registrants. It will pay for a total or partial shutdown of the event and if the event must be held at an alternate site. Coverage is for risk from any direct physical cause beyond the insured's or the show participants' control. Common exclusions are lack of financial resources, lack of support of participants, late or non-arrival of exhibits to the show, war, nuclear perils, disease, or epidemic. The anticipated gross receipts from members determine the limits of insurance.

Country inns provide overnight lodging accommodations for guests as well as a home for the inn's owner and/or manager. The inns have full service restaurants for both guests of the inns and other customers. Many are located in rural areas. Some offer leisure-time activities, such as swimming pools and recreation facilities on the premises.

Many homeowners are supplementing income by renting out all or portions of their homes on a temporary basis through online networks like Airbnb & Vrbo. Many homeowners insurance carriers are unwilling to accept this added exposure.

The standard markets usually insure hotels. However, some are much more difficult to place because of high property values and/or difficult liability exposures. Some hotels located in coastal areas are subject to heavy windstorms and hurricanes. Casino operations at some hotels introduce unique and unusual crime and liability exposures, while restaurants and bars present liquor liability exposures. Swimming pools, lakes, skating rinks, skiing, and other leisure activities for guests are examples of difficult liability exposures. Some hotels arrange trips for guests and programs for conventioneers.

Bars, restaurants, hotels, motels, and other businesses that sell, distribute, or serve liquor need coverage for their vicarious liability for injury or damage that arises out of acts of patrons served alcoholic beverages in their establishments. Specialty insurers write liquor liability coverage. It covers common law and statutory liability exposures for the businesses and also owners, general lessees, or mortgagors of the property. Insurer interest in writing this coverage and the premium levels available vary from state to state, based on the liquor liability laws in each state.

Liability and physical damage coverage is extremely important to resort owners or operators. Resorts located in areas without public fire protection or in areas that are difficult to reach are particularly difficult to place because of the distance to the fire department, inadequate water supply, high brush hazards, or older buildings. Coastal resorts may have difficulty obtaining coverage for windstorm and flood. Liability exposures are often significant and include swimming pools; beach craft, such as wind surfers, jet skis, parasailing, and personal watercraft; scuba diving; water skiing; trail rides; mountain climbing; and white water rafting. Resorts also have liability exposures from winter activities such as ski trails, tows and lifts, toboggan runs, and snowmobiles. Many resorts also have exercise facilities, specialized concierge services, and significant liquor liability exposures from restaurants and bars on the premises.

Many insurance companies consider this class of business to be accommodation business. Loss experience on restaurants is consistently poor, largely due to the high incidence of fire as a result of ignition of grease on cooking equipment and in hoods and ducts. Other frequent causes of fires are defective electrical wiring, electrical appliances, and poor housekeeping. Installing automatic fire extinguishing systems reduces fire loss potential from ignition of grease during cooking operations. Liability exposures are considered less significant than the property exposures unless the restaurant serves alcohol. These risks are usually written subject to rigid inspections and the insured's cooperation to eliminate hazards.

Following are some examples of Specialty Hotels And Motels Insurance claims and the corresponding insurance coverages that can help pay for them:

1. Property Damage Claim: Let's say a fire breaks out in your motel due to a malfunctioning appliance. The fire causes significant damage to the motel's structure, furnishings, and guests' belongings. The Specialty Hotels And Motels Insurance would cover the cost of repairing or replacing the damaged property, thus saving you from the substantial expenses. The insurance can also cover the legal costs if a guest decides to sue the motel for the loss of their belongings.

2. Liability Claim: Imagine a scenario where a guest slips and falls on a wet floor in the lobby of your hotel, sustaining severe injuries. The guest then sues the hotel for medical expenses, lost wages, and emotional distress. The liability coverage of your Specialty Hotels And Motels Insurance would help to cover the legal fees, court costs, and any settlements or judgments up to your policy limits.

3. Business Interruption Claim: Suppose a major storm hits your area, causing extensive damage to your hotel and making it uninhabitable for several weeks. During this period, you lose significant revenue due to the inability to rent out rooms. Business Interruption coverage, a part of Specialty Hotels And Motels Insurance, would compensate for the loss of income during the period of restoration.

4. Employee Dishonesty Claim: If an employee of your hotel engages in fraudulent activities, such as embezzlement or theft of guest belongings, the guest may decide to sue the hotel for not properly safeguarding their property. The Fidelity coverage in your Specialty Hotels And Motels Insurance would cover the loss and legal expenses associated with such a lawsuit.

5. Cyber Liability Claim: In the digital age, data breaches are a significant risk. If your hotel's reservation system is hacked and sensitive customer information is stolen, customers may file lawsuits against your business. Cyber Liability coverage, included in Specialty Hotels And Motels Insurance, would help cover the costs of legal defense, settlements, and other related expenses.