Business owners who want to succeed in the long run must have insurance cover. This protects your business by removing all obstacles, allowing you to focus on growing it. However, blindly investing in insurance is not the solution. In order to be protected from all realistic financial threats, you should have a policy that suits your business’s location, dynamic and size.
The same is the case for hotel owners. It’s very important to make sure you invest in the right kind of hotel insurance. The best way you can do this is by speaking to a Chartered Insurance Broker to see how their advice can benefit your business.
It’s not always easy to understand what you should be looking for when buying insurance for hotel businesses. In selecting cover you need advice to ensure that you do not miss out on many critical areas. When it comes to financial risks, it’s better to be prepared than to suffer due to lack of experience.
That is why we at BIS Insurance is here to guide you about hotel insurance in north wales and things you should consider.
What does Hotel Insurance Cover?
Protecting your assets will always be your number one priority as a business owner. This is why you should understand what your Hotel Insurance policy covers.
Various Covers can include:
- Buildings and Contents Coverage
This insurance protects your Hotel Buildings and Contents against risks such as Fire, Theft, Flood, Accidental Damage and other physical risks.
- Public & Products Liability
Public Liability protects you against claims made by members of the public who may have been ill or injured at your hotel. Cover includes the costs of damages awarded against you and legal costs which you could incur in the event of a claim against you.
- Employers Liability
It is a legal requirement in the UK for you to have employers’ liability insurance. As a hotel you are more than likely to have staff members, so it is vital you look into this type of insurance for your hotel. This protects you against damages awarded against you resulting from your employees suffering injury while they are working for you in the course of their employment.
- Business Interruption
Business Interruption Insurance protects your business against a reduction in turnover following an Insured Event such as Fire, Storm, Explosion etc. which causes damage to your Buildings or Contents, which in turn impacts your business turnover.
Most losses that you experience will impact your business and you will most likely see a reduction in your turnover – the more severe the loss the more severe the impact on your business. For example a large fire will have a major impact on your business and your turnover will reduce significantly as a result of that.
The intention of the insurance is to maintain the turnover of your business following an Insured event so that you can resume trading at your pre insured Event level of trading.
It is often referred to as ‘Loss of Profits’ insurance as amongst other things it provides cover for profit that you would have earned but of an Insured Event.
In the event of a major loss your business could stop trading completely so what cover is included in a Business Interruption Policy? Examples are –
1. Compensation for the insurance gross profit that would have been earned based on previous financial records, had the major loss/peril not occurred
2. Operating expenses, such as utilities or wages that must be paid even though business temporarily ceased
- Legal Expenses
Legal expenses insurance covers your legal expenses if you need legal advice, solicitor services, or if a case against your hotel goes to court. It gives you cover for the costs that you incur for legal representation if necessary.
Hotel Insurance Exclusions
Exclusions apply to all insurance policies, which is why you should check the terms and conditions before you purchase. A odd Chartered Insurance Brokers will take the time to review these with you to ensure that you are aware of what they are.
To protect your building from damage and your staff and guests from injury, you will need to maintain a maintenance schedule, e.g. regular wiring and gas inspections. Failure to do so could invalidate any claims. Normal wear and tear is not covered under any policy.
Double-check your policy to see what types of theft are covered, as hotels are much more open than regular houses, with guests and staff coming and going all the time. Make sure you understand the level of security you need to ensure you are covered.
Lastly check that your kitchen is fully protected, as certain types of fittings or appliances can increase your fire risk.
We hope this hotel insurance guide helped clarify any thoughts, queries or concerns you had regarding the matter. Our team at BIS Insurance can guide you through the process, and make finding the right insurance stress-free and efficient. Contact our team to begin your enquiry.