Hospitality Business Insurance

Overall, you can find the best business insurance for hospitality firms with The Hartford, NEXT Insurance and Nationwide. The Hartford offers the best customer experience for claims and agent service in the industry, the lowest business insurance rates for hospitality firms under 20 employees, and tailored plans covering risks other providers won't. NEXT serves smaller hospitality businesses with 4 or under employees better than The Hartford with more ideal insurance pricing and a digital buying process that takes under 10 minutes with instant Certificates of Insurance. Nationwide serves as the large firm specialist offering the best coverages for specialty food spoilage and equipment breakdowns with the one of the highest financial stability ratings in our study from A.M. Best (A).

Hospitality insurance refers to a business insurance bundle that provided personalized protection for your company from common liability and property damage risks in the industry. This can include anything from lawsuits from customers due to a slip and fall at a hotel or any property damages caused by occupants at a resort. In general, you can expect the following essential business insurance coverage to be in a tailored hospitality company insurance plan:

• General liability insurance: This covers your hospitality business for any injuries to third parties on your property and any liabilities arising due to advertising or lawsuit.
• Workers comp insurance: It is required if you have employees and covers your hospitality workers such as room cleaners or front desk clerks if they are injured on the job and your firm if it is sued for any injuries by them.
• Commercial property insurance: Any damage done by anyone on your hospitality firm's property to items such as appliances, walls, bedding or lighting will be covered by this type of business insurance.
• Business interruption insurance: Also known as business income insurance, this provides you with protection if your hospitality business has to shut down operations and any loss of revenue associated.

Keep in mind this insurance type applies best to businesses such as hotels, hostels, banquet halls, resorts, motels, bed & breakfasts (or inns), wedding venues and resorts. However, there is a lot of overlap for recommended coverages for food and beverage insurance as well (which operates under a different business classification).

Overall, you'll likely be required to get workers comp, general liability, commercial property insurance, and business interruption insurance as a hospitality business either by your state's government or contracts (typically for building financing or leasing). If you offer alcohol as part of your services, you'll also be required to have liquor liability insurance as part of state dram law (varies by location). However, there are also other optional coverages for hospitality businesses to consider that vary depending on your particular operation:

• Equipment breakdown insurance: For those with hospitality firms with equipment like AC, appliances or heavy machinery that you need coverage for, equipment breakdown insurance ensures you are reimbursed for repairs if they break down naturally over time.
• Cyber insurance: If you store customer data or do any operations online, this is a must have to protect your hospitality firm from data breaches.
• Food Spoilage/Contamination Coverage: Specifically covers loss of perishable inventory due to equipment breakdown, power outages, or contamination which can be crucial for hospitality businesses with kitchens who rely on revenues from food.
• Employment practices liability insurance (EPLI): In the hospitality industry, especially if you have a high number of employees, this covers you for any complaints and lawsuits arising from employment practices coming from employees. This is often included as a separate portion of your workers comp policy but can be purchased separately.
• Valet parking liability: If you offer valet parking as part of hospitality services, this protects your business from any damages to customer vehicles caused by valets when driving them.
• Crime/employee dishonesty insurance: Covers theft by employees, including cash handling theft, fraud, forgery, and embezzlement. The hospitality industry's cash-intensive nature and multiple transaction points create vulnerability, especially in larger operations make this coverage a strong recommendation.

Costs for business insurance for hospitality companies on average range from $38 per month to $140 per year depending on coverage type chosen. However, this pricing will vary widely depending on your specific hospitality industry, the size of your firm, coverage level chosen, your annual revenue, annual payroll and your specific state/s of operation.

In our study of hospitality insurance, we found the best cheap provider was The Hartford for most small businesses, but NEXT, Nationwide, Coverdash and Simply Business are also highly recommended options to look into. While this is the case, you should do you own research, looking into company reputations, identifying which business insurance coverages you actually need, and comparing plenty of quotes to get the right fit for your firm. Keep in mind your business's size, revenue/payroll, state where you operate and your specific hospitality industry when making decisions.