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Benefits Offered by Hotel Insurance Policy (3)

Benefits Offered by Hotel Insurance Policy (3)

Right from dealing with diverse interest groups and factors to unfortunate incidents, natural calamities and unfavourable business conditions, a hotel business is prone to various risks. So as to make the business traverse through these obstacles smoothly and make it sustainable, there is a need of adequate financial coverage. One such comprehensive tool that offers financial assistance in times of need and makes the business sustainable is 'hotel business insurance policy'.

Importance of hotel insurance

As an owner of a hotel business, you are at risk of facing situations which can result in loss and damage to your business. These situations include fire accidents, public liability, theft of contents, any catastrophe leading to damage of property or casualty to customer/employee, legal claims from disgruntled customer, employer-employee dispute, etc. Further, there might be situations, such as recession, etc., when you are compelled to close your business temporarily.

Hence, it is significant that you quantify the risk to your hotel business and buy adequate insurance cover, as the coverage would come to your rescue in these situations.


The benefits accrued from hotel business are far reaching. By spending a reasonable amount on getting insurance, you can yield few crucial benefits, which are as follows:

• Coverage to both, the property and the contents

Though hotel business comes under hospitality industry, it deals with heavy infrastructure such as spacious buildings, sophisticated storages, important machinery, huge inventory, and also other contents such as articles, instruments, crockery, utensils, furnishings, furniture, fixtures, electrical installations, air conditioners, etc.

While the physical building is prone to damage from incidents such as natural catastrophes, fire accidents, etc., the components are prone to risk from damage, theft, liability from customer/employee, etc. Therefore, it is sensible to buy insurance policy to cover your hotel business from the possible and unexpected risks.

As the hotel insurance offers coverage for both hotel building as well as its contents, you need not take two separate insurance policies.

• Coverage against claims made by public

Hotel business involves diverse dealings with general public, which include selling food and beverage, providing accommodation, arranging tourist vacations, business delegation conferences and range of other activities. Large or small, there is high risk of liability in all these services because of apparently unhappy customers for any reason while dealing with your business or because of petty issues between your employee and the customer or because of any damage occurred to the customer or customer's property, due to the negligence of your business or employee.

• Employers' and product liability claims

Here, there are two segments - employers' liability and product liability. We will discuss each separately.

o Employers' liability: The law instructs all employers to take care of the employees' health and working conditions at the workplace. It is the employer's responsibility to take adequate measures for sickness or casualty. In case, the working conditions cause any harm to the employees' health, then are there chances of facing a liability claimed by the employees.

o Product liability: Hotels serve various dishes and beverages, including routine foods, alcoholic and non-alcoholic beverages. But, there is high risk of liability associated with these food items - people may fall sick after using your product, say a packet of hamburgers. Hotel liability insurance protects your business against the claims that originate due to the faulty food items served by you.

• Ensures smooth run of the business - business interruption

Apart from the risks associated with employees, the public and customers, you may face risks that are absolutely out of your control. These include economic recession in general, catastrophes like flooding, heavy rains, earthquake and the like. All these interrupt your hotel business, and might result in temporary shutdown of the business. Hotel business insurance offers cover for all these risks.

Reliable brokerage firm helps you get tailor-made policy

Being aware of the risk involved in your hotel business and the importance of the hotel business insurance, it is time to buy an insurance cover that is appropriate in terms of amount of coverage, span and premiums. Instead of buying multiple insurance covers, it is better to buy one policy that covers all the probable risks that you face. Further, it is better to buy customised insurance cover instead of a standard one.

For getting the most suitable business insurance cover, it is advised to approach a reputed brokerage firm having experience and knowledge in selling hotel business insurance. Negotiate for a cover that is comprehensive enough for your hotel business. It depends on the size, number of customers, working hours, and the product/services you are selling.

Hotel insurance is thus significant and hence, you should buy it keeping in view the risks involved therein. It protects your valuable business against diverse risks and liabilities.

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