What is hospitality insurance?
Hospitality insurance is customized coverage for the specific risks that hospitality operators face. Every business within the hospitality industry is unique, so your coverage should be too. Whether it’s a cyber breach, a fire, or equipment breakdown - even when you’re actively managing risk, unforeseen incidents that are out of your control can happen and can cost your business time and money.
That’s why the right coverage is so important. You can tailor your insurance to cover the things that matter most to your business operations.
What business types are eligible for hospitality insurance?
- Adventure tourism
- Bed & Breakfasts
- Catering services
- Golf courses and clubhouse
- Hotels and motels
- Recreational facilities
- Resorts (summer, ski, all-season)
- Restaurants, diners, coffee houses and bakeries
- Sport and event venues
Contact a broker from BrokerLink to learn more about which hospitality businesses are covered.
What does hospitality insurance cover?
Commercial general liability insurance
Food poisoning, slip and falls, and bodily injuries are just a few of the many potential liabilities you face. Commercial general liability insurance can help protect your hospitality business against the day-to-day hazards that lead to expensive claims or lawsuits.
Commercial property insurance
A kitchen fire, water damage or a natural disaster could devastate your business. Commercial property insurance covers your business and its contents for insured perils, including equipment and fixtures, furniture and building peripherals. In addition, it helps cover the replacement or repair cost on equipment that has broken down from external sources.
Many business owners have experienced closures due to storms, power outages, fire or even theft. While property insurance can cover the cost of replacing your building, equipment, or materials, what is in place to maintain your business cash-flow in the meantime? Business interruption insurance helps you get your business up and running again, in the shortest time possible if you must close for an extended period due to an insured property damage loss. Business interruption insurance can cover the costs of utilities and taxes, employee wages, lost business income, and rent payments.
Depending on the size of your business, you may want to consider an equipment breakdown add-on to your policy. Although property insurance covers your building and the contents inside such as equipment, it doesn’t cover equipment damage caused by internal factors. Internal sources of damage include mechanical, electrical, boilers, air conditioners and refrigeration systems, and computer breakdowns.
Host liquor liability
If your hospitality business serves alcohol, then host liquor liability insurance is a must. Generally, host liquor liability will cover you in the event of a claim for personal injury or property damage, in which the consumption of alcohol plays a major role. Depending on your specific policy, the following may be covered:
- Legal expenses, including attorney fees due to a lawsuit.
- The cost of damages if the court finds you are the liable party.
- Settlements, if you and/or the other party has decided to settle outside of court.
The hospitality industry relies on technology for booking reservations and maintaining guest information, which increases the risk of data theft. It’s important to protect any sensitive information that belongs to a third party such as guests or employees from being compromised. Cyber insurance helps you to notify your guests and protect them from loss if hackers access their information.
Ready to get a hospitality insurance quote?
At BrokerLink, our insurance advisors help hospitality operators like you find the right insurance for their business and budget. We have the resources and expertise to answer your questions and take the time to understand your unique business needs. From there, we can help find a solution and explain the insurance options available to you. We want to make insurance easy so you can focus on providing an exceptional customer experience to your guests.
Find the right coverage for your hospitality business by getting a free and accurate quote. We can also be reached by phone, email, or in person at one of our many locations in Canada. Contact us today!
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