There are risks associated with running any business. Hotels, for example, could shutter for extended periods when the building is damaged, or owners could get sued when guests’ property is stolen. Having comprehensive business insurance will protect your hotel from liability and financial hardship. Consider the following policies when discussing coverage options with an independent insurance agent.

What Insurance Policies Should Hotels Have?

1. Commercial Property Insurance

Commercial property insurance will pay for physical damage incurred in a variety of scenarios. For example, building and furniture repairs should be covered under direct damage insurance, and earthquake and flood coverage can be added if necessary. A commercial crime plan can protect the hotel from liability if an employee is caught stealing.

2. Equipment Breakdown Coverage

From boilers to HVAC equipment, hotel machinery provides a comfortable stay for guests. A mechanical or electrical malfunction could temporarily suspend operations.

Equipment breakdown coverage will cover losses when equipment is damaged in an accident. It can also cover expenses for related issues — such as water damage caused by leaking AC units — and lost income due to faulty equipment.

3. Business Income Coverage 

If your business needs to close temporarily due to an accident, you might have no choice but to lay off some employees. You should keep your hospitality directors, housekeeping managers, and concierges to ensure a reopening occurs smoothly. This coverage can supplement their income until the hotel is back in business.

Whether you run a small boutique hotel or large hospitality company, the professionals at Consolidated Agency, Inc., in Rochester, NY, will help safeguard your business from liability. Since 1988, the agents have helped clients throughout Monroe County and the surrounding communities find appropriate business insurance coverage. The insurance agency works with many well-known companies to provide custom options that’ll suit your hotel’s unique needs. See a list of insurers online, or call (585) 467-4110 for an appointment. Find announcements and updates on Facebook.