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Business insurance for small hotel businesses

By February 21, 2022No Comments

Running a small hotel is completely different from running any other business. In other businesses, you can create a model to mitigate the risks associated with business operations. But, as the hotel business relates to customer or visitor hospitality, the risks can be diverse. It is difficult to recognize the possibilities. For this, having business insurance that covers the liabilities is essential. While large-scale hotel businesses can pick several insurances to cover the requirements. But small hotel businesses can fail miserably in such cases. 

Why do hotels need business insurance?

Small resorts, lodges, restaurants, and other hospitality businesses also need insurance coverage. Meeting the legal cost, compensation against lawsuits, property damage, and many more can shut down a running business in no time! Recovery from such unforeseen business threats can damage the business and permanently close it. Hence, it is time to think beyond the regular insurances like group healthcare for employees and management liabilities. As a hotel owner, take the right steps by purchasing business insurance that will ensure smooth business running, irrespective of the risks and interruptions. 

Common examples to help you understand the need

Are you still confused with the need for purchasing business insurance for a hotel? It is completely understandable for small hotel business owners. Why? Because when you run a small hotel, you are mostly unaware of the possible risks that the business may get disrupted with and bring legal charges against the brand. With time, when your hotel business grows, you would certainly have to buy the policy to meet the needs. Isn’t it better to be careful from the initial steps? Following are some incidents that will help you understand the requirements for a business insurance policy.

  • Example 1 – If the visitors in your hotel encounter a physical injury for the mismanagement of service in the hotel, they can claim compensation. Suppose a visitor or guest accidentally falls from the stairs of your hotel for the wet floor and damages themselves with severe body injuries. They can blame the hotel management for no warning or preventive measures. The hotel owner or management has to bear the expenses and compensation unless they are insured under business insurance. 
  • Example 2 – Negligence of service and hospitality can also bring legal allegations against a hotel. Suppose a child (accompanied by a family residing at your hotel), accidentally find its way to the pool. If the child falls into the pool followed by a tragic drowning experience, the blame will come upon the hotel. Why? Because it is an act of negligence. There can be legal cases and a heavy penalty imposition. Small businesses cannot always meet such financial distress, leading to a complete shutdown of the hotel. Business insurance can meet the legal defense charges and penalty charges under the insurance coverage norms. 
  • Example 3 – Hotel kitchens are not always safe from fire accidents. Suppose a fire breaks out in the hotel and damages the properties of visitors. The visitor can legally sue the hotel for violation of fire and safety measures. Such legal charges can shut the hotel and business. But if you are covered under business insurance that provides accidental expense coverage, you can recover conveniently. 

There are plenty of other examples and case studies that will help you with the coverage aspects and need for purchasing business insurance. If you are a hotel owner, do not wait for any further to purchase the insurance and ensure smooth business operability. 

Factors that determine the utility of the policy for your hotel

Are you thinking of purchasing a business insurance policy for your small hotel business? If you are not sure about how to proceed with the decision or which coverage aspects to check, read the following. Get an idea of the essential coverage aspects that make a significant impact on the utility of the business insurance policy – 

  • Property coverage: Hotel businesses depend on the property and its conditions. So, it is crucial to safeguard the property by creating a financial backup in case of accidental damages. Buy insurance that covers property recovery expenses during risks and business crises.
  • Business interruption: Hotel businesses do not have a patterned revenue flow. It means there can be a business interruption for any unforeseen events. For example – your hotel becomes non-functional for a natural disaster, say flood, owing to which there are huge losses. The business interruption insurance meets the losses and standing charges. It is a wise step to include such insurance benefits for running a small hotel business. 
  • Coverage for accidents: Fire accidents are common with hotels for employee negligence and safety standard breaches. The unexpected accident causes financial and property damage to small hotel owners. Business insurance coverage for accidental cases is of great help in such times. So, remember to include such coverage benefits to manage disasters and crises. 
  • Liability protection coverage: Unexpected building collapse, poor maintenance causing body injuries to visitors and employees can permanently damage the reputation and business of your small hotel. Recovery can be difficult unless you have sufficient assets. Business insurance can safeguard your assets and assist in recovery. Remember to include this public liability coverage pointer in the business insurance you purchase. 

List of Policies Small Hotel Businesses Can Purchase – 

  • Standard Fire and Special Perils Policy
  • Workers Compensation Policy (for contractual staff)
  • Group Healthcare Insurance Policy (for permanent employees and their dependent family members)
  • Commercial General Liability Insurance
  • Public Liability Policy

Comprehensive coverage for hotel businesses

Find tailor-made business insurance that suits the requirements of the hotel business. Being the owner of a small hotel, you cannot off-limits with your budget. Then how can you find the apt business insurance? The best way to resolve this is by getting in touch with an insurance broker who deals with several business policies. Ask the right question and find the best price that will help in meeting your expectations and not exceeding the estimated budget. Find a reliable insurance broker who can recognize the essentialities in the small hotel business. 

Get in touch with PlanCover.

PlanCover, the leading insurance broker company in the country, has the best deals in business insurance. As a small hotel business owner, you will find diverse options to choose the business policies that can resolve the industry-specific coverage requirements. The insurance experts in PlanCover listen to your requirements and budget to bring a business policy that satisfies you as a purchaser. Connect to their proficient team now! 

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