Getting the right cover
If you're opening up your home to paying guests then you are effectively running a business from your property. That means things such as buildings and contents insurance will need to be changed to ensure you have the right cover. Your ordinary home insurance won't cover you for business activities, so you will need to update or even completely change your policy. If you don't then your home and contents may not be covered if they are damaged by a guest, for example.
You will also need to take out public liability insurance to protect you and your business financially against the legal cost of compensation or injury claims.
Other cover that you could include in your b&b insurance package might include:
- Guests' belongings cover - to protect you against any financial claims from guests who may suffer loss or damage to their belongings while staying at your B&B
- Employer's liability insurance - essential (and a legal requirement) if you employ anyone within the context of your business operations, even if it's a family member or on a part-time basis. Personal liability insurance - to protect you as an individual against any legal costs in the event of a compensation or injury claim
- Loss of bookings cover - this provides financial cover should you have to cancel any bookings as a result of an unforeseen event such as a fire, flood, burst pipe or other natural or unavoidable incident.
- Legal protection - this is often overlooked or left out because it adds a few extra pounds to your annual policy payment, but it could be some of the most important insurance you take out. Never skimp on legal protection, as legal costs could cripple your business if you have to pay them out of your own pocket.