Hotel Insurance

What is hotel insurance?

Hotel insurance is a business insurance policy tailored to the requirements of a particular hotel or guesthouse. Rather than a single fixed product, it brings together the covers a hotelier is likely to need, which may include commercial premises (buildings) insurance, contents, public liability, employers' liability, and stock and equipment cover.

Every hotel is different, so the policy is built around your circumstances: the size of the building, the number of rooms, the staff you employ and the facilities you offer guests.

Who needs hotel insurance?

Anyone running a hotel or guesthouse needs cover to protect their property, staff and guests should the unexpected happen. Running a hotel poses all kinds of risks, including fire, flood, property damage, theft and injury to staff or customers.

Some elements are compulsory. Employers' liability insurance is a legal requirement if you have staff. Other covers are not required by law, but running a hotel without insurance is considered by many not to be a risk worth taking.

If you let a property through AirBnB rather than running a hotel, that is a different product and is covered on our separate AirBnB insurance page.

What does hotel insurance cover?

A hotel insurance policy is tailored to your business, but the typical areas of cover are set out below.

• Buildings insurance covers the cost of repairing damage to your hotel building, including carpets and walls.
• Contents insurance covers decorations, furniture, lamps and similar items, which matters when a constant stream of guests is using your furniture and facilities.
• Possessions cover protects you against theft of or damage to guests' belongings. You may be liable for lost property even when it was not directly your fault, so this covers the cost of replacing or repairing the item.
• Employers' liability insurance protects your business if a member of staff has an accident or suffers an injury in, or as a result of, your business.
• Public liability insurance covers compensation and legal fees if a guest or visitor has an accident on your premises.
• Business interruption insurance protects you against the cost of rent, wages and loss of earnings if your establishment becomes uninhabitable because of damage, vandalism, fire or another circumstance covered by your buildings insurance.

What is not covered by hotel insurance?

Hotel insurance only covers the risks you have chosen to include, so anything left off the policy is not covered. Because every hotel is unique, you need to check that each area that matters to your business, such as guests' possessions or business interruption, has actually been included rather than assuming it is part of a standard package.

Business interruption cover is also tied to your buildings insurance: it responds when the premises become uninhabitable because of a circumstance covered by the buildings section, so an event excluded from buildings cover would not trigger a business interruption claim either.

Is employers' liability insurance a legal requirement for hotels?

Yes. Employers' liability insurance is a legal requirement if you plan on hiring any staff, and businesses that fail to have adequate cover in place face fines of up to £2,500 per day.

Since it is fair to assume you cannot run a hotel or guesthouse without an extra pair of hands, this will apply to most hoteliers. The cover protects your business in the event of a member of staff having an accident or suffering an injury in, or as a result of, your business.

How much does hotel insurance cost?

There is no standard price, because policies are specific to your requirements and your business. The cost of your hotel insurance will depend on several factors, including:

• the location of your establishment
• the number of rooms
• your annual turnover
• how many members of staff you employ

The best way to find out what your policy would cost is to get a no-obligation quote by completing the short quote form.

What information do you need to get a hotel insurance quote?

To get a quote you will need to provide a few details about your business, including:

• business name and address
• claims history
• contact details
• the types of cover you require

If you run a guesthouse rather than a hotel, you will see an option for guesthouses on the quote form.

How do I compare hotel insurance quotes?

Complete one short form and you will receive live quotes to compare online from a panel of UK business insurers who cover hotels and guesthouses. This replaces the job of shopping around and contacting numerous insurance providers individually.

When comparing, look beyond the premium: check that each quote includes the covers your hotel needs, such as buildings, contents, guests' possessions, public and employers' liability, and business interruption. Any detailed questions about a particular policy are best directed to the insurer providing it.