UK COMMERCIAL INSURANCE FOR HOTELS, MOTELS, GUEST HOUSES, SMALL LICENSED HOTELS AND BED & BREAKFAST PREMISES
Commercial All Risks cover for Hotels B&B & Guest Houses
If you are in the hotel or accommodation business you will need insurance as without it your livelihood is at risk. We offer cover for hotels large and small, from the sole trader bed and breakfast guest house or inn through to large hotel chains.
An unexpected loss could cause financial hardship and destroy years of hard work.
Hotel & Guest House insurance information
Under UK law some types of Hotel commercial insurance are compulsory.
This site has been designed to enable and provide you with information and the best possible assistance with all the commercial Insurance needs of your hotel or guest house.
There are many types of commercial insurance that offer valuable protection to any hotel business.
Please read the following to ensure that you can correctly identify the areas which are important to the protection of your business.
Whilst all of the undernoted sections are important to you your attention to the following specifics is very important
Third Parties on your Premises
By the very nature of the Hotel Industry, the public are invited onto your premises.
It is your legal obligation to ensure that your premises are a safe place for visitors.
Also, goods and services sold and supplied must be to the required standards.
There is the obvious issue of goods consumed on the premises particularly as many establishments provide food as well as drink.
Potential for Food Poisoning exists even in the best run premises.
Also if there is entertainment provided, particularly in nightclubs or where a “late license” exists, nuisance to local residents must be considered.
In addition to the points made above Hoteliers have additional legal responsibilities for goods belonging to their guests.
HOTEL INSURANCE COVERS AVAILABLE
The Buildings and Contents can be insured against fire, lightning, explosion of gas and boilers used for domestic purposes,and also “special perils” such as explosion, riot, malicious damage, storm, flood, impact by aircraft, road and rail vehicles, escape of water from tanks or pipes and sprinkler leakage.
“All risks” insurance gives wider cover including any accidental damage or loss not specifically excluded. However “all risks” will not cover wear and tear, electrical or mechanical breakdown and gradual deterioration which will be specifically stated in the policy document.
How Much Should you cover your Hotel or Guest House For ?
Buildings – the business premises should be insured for their full rebuilding cost (including professional fees and the cost of site clearance) and not just for their market value. You may need expert advice to calculate the rebuilding cost, which often differs significantly from market value.
Contents – your stock should be insured for its cost price without any addition for profit. Provision can be made for seasonal stock fluctuations.
Plant and business equipment can be insured on either a “replacement as new” or an “indemnity” basis. If indemnity is chosen, wear and tear will be taken into account when settling any claims.
Damage to your property or machinery, or loss of stock, could seriously disrupt your business leading to loss of income and extra expenses.
You must also consider how similar loss or damage at the premises of your suppliers or customers may impact your own business and consider taking out cover for such eventualities
Business interruption insurance will compensate for the short-fall in gross profit together with paying any increased working costs and extra accountants’ fees incurred.
When arranging this contingency insurance you will need to estimate the maximum time needed to get your business working normally following the most serious damage. The insurers will ask for an estimate of your anticipated gross profit. If an auditor later certifies an actual figure materially lower than this estimate, a return of premium is normally given.
Engineering insurance provides cover against electrical or mechanical breakdown for most machinery, including computers.
Under UK law, many items of plant such as boilers, hotel lifts and lifting machinery must be inspected regularly by a qualified person. Insurers can arrange to provide this service – please enquire.
Contents are usually covered against theft providing there has been forcible and violent entry to or exit from the premises. Damage to the building resulting from theft or attempted theft will also normally be covered. Theft by employees is usually not covered – cover against employee dishonesty can be arranged by a fidelity guarantee policy.
Money insurance is on an “all risks” basis and covers cash, cheques, postage stamps and certain other negotiable documents.
Different limits will apply to money on the premises in and out of business hours, in safes, at the homes of directors or employees and in transit. There may be requirements in the policy relating to safe keys and the method of transit.
Personal assault cover may be included, which will provide compensation for you or your employees following injury during theft or attempted theft of money.
This provides you with cover and protection against claims for which you would be legally liable for and brought to you by anyone (other than your employees) for bodily injury or loss or damage to property arising in the course of your business.
This is legally required if you have employees (including Directors in a Ltd Company) The Insurance is to protect employers against claims for bodily harm or death brought to employees in the course of employment( this also includes injury by other employees, for whom the employer is liable).
A certificate has to be displayed in a place that all can see.
GOODS IN TRANSIT
Goods in transit insurance covers goods against loss or damage while in your vehicle or when sent by carrier. The sum insured may be a limit for each vehicle or any one consignment.
This protects you against customers who fail to pay their invoices. Because the risk of bad debt can be high, you would probably find it hard to get cover for this unless your business has been successfully up and running for some time.
This covers you for fraud or dishonesty by employees; it can be taken out for specific employees or the whole staff.
LEGAL EXPENSES INSURANCE
This helps to cover the majority of your costs in the event of a legal dispute.
This usually covers legal costs for employment tribunals, prosecutions under Acts such as Health and Safety at Work (etc) 1974,contract disputes and costs caused by in-depth Internal Revenue or Custom and Excise investigation.
Some legal expenses policies also provide free legal advise as well as cover for employees time lost during jury service or as a witness in a case
CONTACT US FOR HOTEL, MOTEL AND GUEST HOUSE INSURANCE QUOTES AND ADVICE