Everything you Need To Know About Hotel Insurance

The hospitality industry was among those severely impacted by the Covid-19 pandemic. Hotel owners are now facing more business threats and uncertainties. The question then becomes, what can be done to reduce the risk of damage? One of the preferred methods is to obtain hotel insurance through an insurance broker in Sydney, who can provide the best insurance option after careful analysis of the current market scenario. Continue reading to learn more about hotel insurance and why owners require it.

What is hotel insurance?

Hotel insurance is a collection of various insurance policies designed to protect all aspects of the business from threats and third-party claims. General liability insurance, secondary liability coverage, and other additional coverages are among the prominent coverage areas.

What insurance do hotels need?

Every hotel has its own set of services that help it stand out from the crowd. Similarly, their need for insurance is determined by the range of services provided. Some hotels, for example, have large luxury amenities while others have smaller ones with necessary items. However, there are some types of insurance that every hotel must have. Let us take a closer look at each one:

Commercial general liability insurance

This insurance is the most important in the hotel insurance program and is required for all hotels, regardless of size, location, or services provided. It covers bodily injury and third-party property damage that occurs on hotel property. Having this insurance is beneficial in a variety of ways because guests or their belongings can be injured or damaged in rooms, during exercise, or while communicating with hotel staff.

Commercial property insurance

Hotel businesses require a significant capital investment, and the properties require commercial property insurance to overcome catastrophic events. The policy applies to the hotel's buildings and surrounding areas, including the gym and other areas. Natural disasters such as floods and earthquakes are typically excluded from commercial property insurance policies. If your company is in a disaster-prone area, you can request coverage by mentioning specifics to the insurer.

Commercial auto insurance for hotels with owned vehicles

Many hotels own vehicles, and commercial auto insurance can be used to cover any liability that may arise as a result of vehicle use. Hotels primarily use vehicles to provide services to guests and to transport other essentials. Make sure your hotel insurance includes commercial auto damage coverage; it can come in handy during a crisis.

Equipment breakdown insurance

Hotel buildings require heavy equipment such as HAVC (heating, ventilation, and air conditioning) systems, security systems, walk-in freezers, and other communication systems. Additional breakdowns and failures can have an impact on the company's profits and routine operations. An equipment breakdown experience can be extremely beneficial when it comes to providing coverage for expensive equipment that serves the hotel building.

Workers compensation insurance

Without employees, it is impossible to run a successful hotel business. Having skilled employees who can manage operations effectively is important, but it can be risky when an employee is injured while providing services. Workers' compensation insurance takes care of legal issues by covering employee injuries as well as the amount of salary or wage lost during the time an employee is unable to come to work.

Cyber liability insurance

A cyber-attack on hotel security systems can disrupt operations and expose personal information. Guests and other third parties may seek restitution for the data leak, which may force the company into litigation. Hotel insurance providers prefer cyber liability insurance for larger hotel chains because it provides financial security and coverage against data breaches.

Garage keepers’ insurance and non-owned liability insurance

This insurance is designed for hotels that offer valet parking. A valet is a hotel employee who provides personalised guest services such as driving a guest's car and parking it in the hotel's private lot. Garage keepers' insurance protects the vehicle from damage while it is in the care and control of the hotel. It primarily covers collisions.

Non-owned liability insurance is purchased to cover vehicles not owned by the hotel chain. If a hotel employee drives a guest's vehicle and inadvertently injures someone in the parking lot, the damage will be covered under non-owned vehicle insurance.

Are you looking for hotel insurance in Sydney?

Do you own a Sydney hotel and want to purchase hotel insurance? Consultation with an insurance broker in Sydney is one of the best ways to obtain coverage. Insurance brokers are knowledgeable about the best insurers in the country and can provide online insurance quotes to those in need of coverage. Bluewell, a trusted insurance broker in Sydney, offers the best insurance assistance for various industries. Bluewell offers a quick turnaround time on online quotes. There may be times when a quote delivery time of less than 24 hours is required. Its insurance is provided by AIG, Vero, Steadfast, and Protecsure.