Operating a business in the hospitality sector can be exciting and rewarding. However, as you serve the needs of your guests, customers and clients, you must account for significant risks and exposures that could threaten extensive financial losses. Even the most experienced and responsible professionals may eventually be involved in accidents or commit errors that could have dire ramifications. With this in mind, investing in appropriate hospitality insurance is essential. 

What Types of Businesses Fall Under the Category of “Hospitality?” 

 

The hospitality sector includes many types of businesses and specific operations and missions may vary significantly. When referring to a hospitality business, the following types of enterprises may be included: 

• Food and beverage
• Accommodation and lodging
• Recreation and entertainment
• Travel and tourism 

What Is Hospitality Insurance and Why Is It Important? 

 

As its name suggests, hospitality insurance is integral to your business’s loss control measures. Hospitality insurance is typically composed of several types of coverage that, when woven together, form a versatile and robust financial safety net that may help limit out-of-pocket costs and losses arising from various incidents and perils.  

Assembling and maintaining an appropriate hospitality insurance portfolio should be among your organization’s top priorities, as lacking adequate coverage could leave you without the means to compensate other parties affected by incidents, repair your property or otherwise maintain operations during difficult times.  

What Types of Coverage Are Included in Hospitality Insurance? 

 

Although some insurance companies may offer prearranged hospitality insurance packages, your business may need to craft its own portfolio from many separate policies. Regardless of how your hospitality insurance is formed, the following types of coverage should generally be included: 

• General liability insurance may help pay for the losses of third parties, such as customers, guests and passersby, arising from incidents for which you were responsible, including bodily injuries, property damage, personal injuries and reputational harm.
• Commercial property insurance may financially protect your business’s physical assets, including structures, electronics, equipment inventory and furniture.
• Business interruption insurance may compensate your company for ongoing expenses and financial losses arising from a delay or disruption in normal operations, including rent, payroll, lost revenue and loan payments.
• Workers’ compensation insurance may provide financial assistance if your employees are injured on the job or develop work-related illnesses, such as for resulting health care costs, lost wages and legal expenses.
• Errors and omissions insurance, also known as professional liability insurance, may provide financial assistance if your company is accused of providing inadequate goods, services or professional advice.
• Employment practices liability insurance may financially protect your business from lawsuits alleging improper workplace conduct, including accusations of harassment, discrimination or wrongful termination.
• Cyber liability insurance may insulate your organization from the financial consequences of data breaches or other cyber incidents by helping to pay for resulting losses and expenses, such as legal costs, ransomware payments, hiring outside help and lost income.
• Commercial auto insurance may provide financial assistance for incidents involving your business’s motor vehicles, such as shuttles, buses and delivery vehicles. 

Get the Right Coverage 

 

With over 80 years of experience serving the coverage needs of businesses, families and individuals, Lakenan Insurance, a subsidiary of the Sunstar Insurance Group, has the knowledge and expertise to help your company secure its finances and future. Contact us today to get started.