Hospitality Insurance

A hospitality business either serves food and drink or provides customers with a place to stay overnight. While this type of company can be extremely lucrative, it also comes with certain risks. Guests could get injured while enjoying their stay, there could be a problem with the food, or someone could get hurt during the delivery process. To adequately protect your business, you will need to take out hospitality insurance. 


What Is Hospitality Insurance? 

Hospitality liability insurance is a type of general liability that covers businesses working in the hospitality industry, such as restaurants, hotels, and other establishments that offer dining or overnight stays in exchange for compensation. The goal is to protect the business from financial losses in case of an issue such as a personal injury or when a customer’s property gets damaged. 

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While the regular risks, such as slipping and falling, are present in the hospitality sector, there are also some unique challenges. For example, there could be a problem with the food. If your employees inadvertently serve expired food to your customers and the guests suffer from food poisoning as a result, they might file a lawsuit. Hospitality liability insurance pays compensation for the customers’ medical bills and covers the legal costs related to the case.

How It Works

Restaurant and hotel owners should take out a policy as soon as they open their establishment. There are various options available, all offering different types of coverage. If you don’t have any experience with buying commercial liability insurance, you might need to speak to a qualified insurance agent to determine which policy suits your needs.

Your agent can help you choose an insurance company that offers good value for your money. Most hospitality liability insurance policies for small businesses cost around $30-80 per month, and they may cover six or even seven-figure damage. However, price is just one consideration. Your agent will also assess your business’s risk levels and make sure that the policy covers the most likely scenarios.

Who Is This Right for? 

Virtually every business in the hospitality industry should take out this kind of insurance. This includes people who own a hotel, restaurant, recreational facility, luxury transportation business, tourist attraction, or cultural institution like a museum. While not all of these are considered traditional hospitality businesses, they usually serve food and drink, for example at a built-in cafe.    The potential effects of a lawsuit on your company’s finances are immense. If the injury or accident is minor, it might cost you $10,000-$50,000, which simply puts a dent in your profits. However, a severe accident that results in a stay at the hospital can easily cost you more than $300,000. This could put your hotel or restaurant’s future at risk. 

Businesses that offer guests food and drink or that allow people to stay overnight must take out hospitality liability insurance to protect their interests. For a low fee, this type of policy can prevent the company from being harmed by expensive lawsuits. If you’re not sure how to find the best insurance, you should speak to an experienced insurance agent. They can provide you with several quotes and help you choose the most suitable one.

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