UK Hotels Amongst Best In The World, But Are You Getting The Best Deal On Your Hotel Insurance?
Trip Advisor has changed the way we book our holiday or business accommodation forever. Poor reviews really matter to now they are at the fingertips of all your potential customers. Ten years ago, that meant bad news for the UK hotel industry, which sat at the bottom of satisfaction tables. But things have changed.
Trip Advisor’s 2015 figures show you have really upped your game and now offer some of the best accommodation in the world, coming second only to Italy in a list of 15 countries including Thailand, Australia, France, Spain, and the traditional home of welcoming hospitality, the USA.
With smaller hotels gaining the highest ratings, it seems that guests are responding favourably to the personal touch: delicious home-cooked breakfasts and more individual flair and charm. But offering high scoring accommodation can mean an expensive investment in quality furnishings and staff costs. Now, more than ever, taking out the right kind of insurance to protect your business, is crucial.
What insurance do I need for my hotel?
Buildings and contents insurance
If you run a hotel you’ll need commercial buildings and contents insurance even if you also live in the property.
Buildings
Don’t base your rebuild costs on your mortgage valuation. Assess the rebuild cost of your building as accurately as possible, bearing the following in mind:
- Many hotels are housed in historic buildings. If your building is listed or located in a Conservation Area, you’ll need specialist cover as rebuild costs can be higher
- Include outbuildings and party wall repair costs as well as your main building
- Do you have solar panels or other renewable energy elements to be considered?
- Is your property in a hard to reach location? This could impact on rebuild costs
Contents
Whilst you might be able to claim costs back from guests who wilfully damage your property, it’s not straightforward. Even if guests are found financially responsible, your legal costs could run high, and if damage occurs as an accident you’ll find yourself liable to fix it.
- Like domestic insurance, don’t be tempted to skimp on valuations. You might save a few pounds in the short term, but if anything does go wrong, you could find yourself unable to afford to re-open
- Write a list of everything that needs to be insured – from carpets and curtains to gym equipment and electronic goods. When you tot up the values, you might be in for a surprise!
- With guests unused to the layout of the room, equipment can be easily knocked into and broken so it can be prudent to include insurance for accidental damage too
- You’ll also need to take out insurance to cover your guest’s contents, protecting them from fire, theft or flood
Other hotel insurance products that you might want to consider to help protect your business include freezer contents insurance, which will recoup the cost of spoiled food in the event of an extended power cut or malfunction, and money insurance to cover cash left in a safe on your premises.
Public liability insurance
A fabulous full-English might be the reason your guests return to your hotel again and again, but if food safety standards are not followed to the letter it could result in food poisoning and a hefty claim against you for damages. Claims arising from allergic reactions to mislabelled foods can also be made as well as compensation for injuries following slips and trips.
- Following strict health and safety guidelines in food preparation and around your property is essential, and needs to be regularly undertaken to help protect your staff and guests from injury, and protect you from legal claims against you
- If an incident does occur, public liability insurance will pay your legal fees as well as any financial payment that is awarded in the event of any injury being suffered by a member of the public due to your business
If you offer outdoor seating on the street or have events that are open to non-guests this will also need to be noted within your insurance policy. It might not cost any extra to insure, but without it, a claim could be invalid.
Employer’s liability insurance
Like public liability insurance, employer’s liability insurance pays your legal fees and for any legal costs of a financial award if any member of your staff is injured by anything connected to your business. It is a legal essential even if you only employ family members or have part-time staff. Without it, you can be fined as well as face huge financial costs if anything does go wrong.
Other hotel insurance options to consider
Unfortunately, the current world climate means that terrorism is a high-level threat across the UK. Most insurance policies do not cover you for damage caused by a terrorist attack, but it can be purchased as an additional item to give you peace of mind that you are covered if your business is targeted or simply in the firing line.
Business interruption insurance will cover you for an agreed amount if your business cannot fully operate due to repairs or has to close completely. It can be easily overlooked, but could prove essential if damage takes a long time to put right and you are unable to trade but still need to pay out everyday costs such as rent and wages.
One size doesn’t fit all
The insurance needs of a large corporate hotel will be very different to a small B&B. To get the best price, without compromising on the level of your hotel insurance cover, it’s important to carefully assess exactly what you need, or speak to a specialist broker like Park Insurance for expert guidance. That way you can be confident that you won’t end up paying out for insurance cover but will keep your business safe from financial risk.
Our dedicated team has 30 years experience finding the best insurance products for the hospitality industry so get in touch now for a no obligation quote.