A hotel or motel isn’t just a building — it’s a 24-hour operation with guests, employees, food service, pools, parking lots, and more all under one roof. One incident can trigger claims from multiple directions at once.
Standard commercial property insurance wasn’t built for that. Here’s what a proper hospitality program looks like.
The Core Coverages Every Hotel Needs
A complete hotel and motel insurance program starts with these foundations:
- Commercial property — covers the building, furniture, fixtures, and equipment against fire, storm, theft, and vandalism
- General liability — covers guest injuries, slip and falls, and third-party property damage
- Business interruption — replaces lost income if a covered event forces you to close or reduce capacity
- Commercial auto — if you operate a shuttle or any vehicles
The Coverages Most Hotel Owners Skip (Until It’s Too Late)
Beyond the basics, hospitality properties have exposures that catch owners off guard:
Liquor liability — if your hotel has a bar, lounge, or even serves complimentary alcohol, you need liquor liability coverage. A guest who drinks at your property and causes an accident can name you in the lawsuit.
Cyber liability — hotels collect massive amounts of guest data including credit cards, IDs, and travel information. A data breach can cost hundreds of thousands in notification costs, fines, and lawsuits. Most property policies exclude this entirely.
Employment practices liability (EPLI) — hotels have high staff turnover and large hourly workforces. EPLI protects you against wrongful termination, harassment, and discrimination claims from employees.
Umbrella/excess liability — when a serious incident happens at a hotel, claims can exceed standard policy limits quickly. An umbrella policy provides an extra layer of protection above your primary policies.
Loss of Income Coverage — Often Undervalued
Business interruption coverage is one of the most undervalued pieces of a hotel policy. If a fire, flood, or major storm forces your property to close for repairs, you still owe your mortgage, your staff, and your vendors.
Most owners insure for too short a period or too low an amount. Work with a specialist to calculate the right coverage period based on your actual rebuild timeline and revenue.
What Affects Your Hotel Insurance Rates?
Underwriters look at several factors when pricing hotel and motel coverage:
- Property age and construction type
- Number of rooms and occupancy rates
- Whether you have a pool, restaurant, or bar
- Your claims history
- Location and state — California and Florida carry higher rates due to weather and litigation exposure
- Security measures in place
We Specialize in Hospitality
Secure Risk Partners places hotel and motel coverage across Texas, California, Florida, Arizona, Georgia, and Washington through carriers including Hartford, Travelers, Lloyd’s of London, and Hiscox.
Tell us about your property and we’ll put together a coverage comparison — fast, free, no obligation.