Obtaining a hotel insurance quote is one of the main considerations before you start running your hotel business. Hotel insurance can be divided by optional covers, such as those covering disasters and mandatory cover required by law. In the context of hotels, under the Employers Liability (Compulsory Insurance) Act 1969 you will need to provide employers liability insurance and display a certificate of insurance, in a place that it can easily be seen by employees. In addition, for most owners of small hotels the mortgage company will also insist you have purchased adequate hotel insurance to protect the reinstatement cost of the building. Likewise, if you’re leasing expensive kitchen machinery or cleaning machinery the leasing company may insist you take out some type of insurance contract to protect it’s assets in event of the equipment being damage whilst in your custody. It would be a brave hotel owner that chooses not to take up appropriate hotel insurance, to mitigate the cost of major disasters, Many small hotel business would simply not be able to cope following a major disaster and bankruptcy may be the end result.
Just like in the residential homes, accidents occur all the time. Accidents in hotels include guests slipping downstairs, becoming ill from a hotel food source or guests may even damage. So for many new hotel owners, it can be difficult to know what level of hotel insurance cover is required to make sure all compulsory compliance is upheld. Whilst some covers are optional for protection from unforeseen disasters, they are all usually worthwhile effecting cover against to obtain the maximum cover possible. Hotel insurance brokers and hotel insurance companies over the course of many years, have created specifically designed policies to cover the risks that are relevant to hotels and bed and breakfasts. The cost of Hotel insurance can therefore vary dramatically, depending upon the comprehensiveness of the policy wording and between product providers. Always remember to check the policy contents very carefully with your hotel insurance broker or product provider, to see whether each particular risk item insured is relevant to your accommodation and situation. Always think carefully before trying to save too much money, weigh up the cost of potential claims and their likelihood of occurring against the savings on offer when comparing different hotel insurance brokers prices. Saving money is always welcome, but savings at the expense of cover is nit always a good idea.
Hotel Insurance Brokers
Most hotel insurance broker policies include standard building insurance cover, (which would be normally taken out at the point of exchange contract when buying the hotel). Think about the potential additional hotel insurance covers also available under these specialist insurance policies. These covers may include: legal expenses (to pay for legal fees during a dispute), goods in transit (if lost, stolen or damaged), personal accidents (to compensate an employee), loss of frozen food (in the event of freezer failure) and computer breakdown. Some polices now also allow you to purchase Legal Expenses insurance. Think carefully about contents insurance when discussing your requirements with your insurance broker, you will need to make sure your sums insured are adequate for your needs. Most small hotels will comprise: furniture and fittings provided for the guests as well as contents owned by the hotel owner themselves. It’s important to be clear on this as your own personal contents may have to included in a separate section. Itemise all valuable contents separately, it’s a good idea to photograph and document them, possibly as an addendum to the policy document. Certainly keeping purchase receipts can help to obtain a faster settlement in the event of a claim. Policies may also specify seasonal stock and in particular alcoholic beverages which provide easy pickings for opportunist criminals during the festive season.
The most common risk is accidental damage to contents which is more likely to occur in a hotel than a private residence, due to the increased number of people working and sleeping in the building. You may find that your policy comes with a no claims bonus, thus making it un worthwhile making small claims, as the effect on the premium may be higher than the value of the insurance claim. It is also possible to insure against consequential loss ( or business interruption) in order to protect profits of the hotel. If your business is interrupted due to activities outside your control ( even by such things as road closure or a nearby gas leak) your hotel insurance policy may provide some financial recompense. Similarly, it is possible to insure against the loss of money from the premises. Most busy hotels have cash takings from the bar, petty cash and the safe. Burglaries or dishonest employees or guests may cost you money if your hotel insurance policy does not adequately cover these items. Before your daily or weekly takings are taken to the bank you must ensure that adequate hotel insurance is provided to protect them in transit until the liability for their safekeeping is handed to the bank. Most policies will have set limits for cash carryings, it’s a good idea to review these limits on a regular basis, especially during periods of increased trading. There may be rules about how cash is carried and by how many people, make sure you study these carefully.
Employers liability is an important aspect of your hotel insurance policy and is a legal requirement for hotel owners. In particular, you may face claims against you from employees who have suffered some type of injury or illness whilst in your employment. Likewise guests staying at the hotel may become ill, accidentally fall down the stairs, leading to a potential hefty financial claim against you, this type of incident is covered under another section of your policy, called public liability. Unfortunately, the blame culture linked to health and safety lapses is now becoming more pronounced than it was a couple of decades ago. This ultimately has resulted in an increase in the number of liability claims made by members of the public, employees and guests alike. However, your insurers will expect you to be following all the required laws relating to health & safety and training, you must display a certificate of employers liability in a place where it can be seen by all employees, expired certificates must be kept for a period of 40 years. Your hotel insurance broker will provide you with a certificate for display. It is of paramount importance that this document is sent you as soon after your policy has been incepted as possible, if it does not arrive within a few days, contact your hotel insurance broker, they should be able to send you one by email. Other documents to be displayed are a requirement of the Hotel proprietors act 1956, these outline the hotel owners liability in respect of certain items, most hotel insurance brokers do not provide these, but your solicitor or trade association should be able to help. Assetsure can provide a comprehensive and customised hotel insurance policy to meet your needs…
