Ensuring the Right Hospitality Insurance For Your Business
Finding the right hospitality insurance for your business is not always an easy task, especially when there are so many factors to consider. Disasters are unpredictable and could result in property loss and other costs, so businesses need to protect themselves from these unforeseeable circumstances. Industry experts say that for hotels and restaurants to continue safe operations in 2022, they need to safeguard themselves from these risks, especially with the COVID 19 pandemic remaining the biggest challenge for their recovery.
The Right Hospitality Insurance for your Business
Hospitality insurance protects businesses in the hospitality industry against risk and helps them maintain profitable operations. Now more than ever, hospitality business owners need this type of coverage to help them recover what they lost during the pandemic.
Significant Types of Hospitality Insurance
Here are the different major types of hospitality insurance and how they can help your business:
General Liability Insurance
This insurance type protects your business from claims resulting from bodily injuries and property damages on your premises. General liability insurance helps protect a company from lawsuits related to injuries, property damage, and injury to a person’s reputation. Additionally, it also covers medical expenses and attorney fees.
Business Property Insurance
Business property insurance covers buildings you own and the valuables and supplies you keep inside those buildings. Likewise, it protects you if a disaster disrupts your business.
This hospitality insurance works by protecting your business from costly accidents, disasters like fire, theft, snow collapse, or other unforeseeable events.
Workers’ Compensation Insurance
Worker’s compensation provides financial assistance to workers injured on the job and protects employers from lawsuits.
Suppose an employee is injured while working. Workers’ compensation insurance allows your business to cover medical expenses or lost wages from car accidents, equipment malfunctions, and other unfortunate incidents.
Business Umbrella Liability Insurance
An umbrella policy provides a higher degree of liability coverage than your business auto and commercial insurance policies offer.
This type of insurance complements your existing liability policies. Then, suppose your company is sued for $3.5 million by a customer injured in your workplace, and you only have $3 million in liability coverage. In that case, a commercial umbrella policy could make up the difference.
Business Interruption Insurance
Business interruption insurance pays for lost earnings and related expenses when a natural disaster halts operations.
Suppose cumulative rainfall from the fall season causes water damage in your restaurant. A contractor says that it will take up to a year to repair the damage.
Although commercial property insurance will cover repairs, you obviously can’t keep operating while construction occurs. Business interruption insurance will compensate for lost revenue during reconstruction.
Business-Specific Insurance Coverages
The hospitality industry includes hotels, restaurants, hotel condominiums, hotel management firms, nightclubs, casinos, etc. You will need specific coverages to cater to your particular risks.
Liquor Liability Insurance
Liquor liability insurance safeguards businesses that serve or distribute alcohol. This type of business insurance covers claims of bodily injury or property damage made by intoxicated individuals who were served alcohol by the insured.
Food Contamination Insurance
Food spoilage coverage complements your commercial property insurance or business owner’s policy that covers your perishable stock. Also, food contamination coverage will reimburse you if a power outage or equipment failure ruins your perishable stock. It will also cover medical testing and equipment cleaning expenses if your business closes down, replaces lost revenue, and provides financial assistance as you restore your business.
Foodborne Illness Insurance
This hospitality-specific insurance covers the interruption of business operations, lost profits, and expenses resulting from foodborne illness claims.
Foodborne illness claims are among the most common risks in the food industry. With foodborne illness insurance, businesses can transfer the risk of severe financial loss to the insurer and gets assistance in managing a crisis.
Garagekeepers’ Liability Insurance
Garagekeepers’ legal liability insurance protects businesses if a vehicle gets damaged due to fire, theft, or vandalism.
If your business has a parking space and a vehicle parked there is damaged by fire, you will be responsible for the repairs or replacement. Having garagekeepers liability insurance will help you pay for these costs.
About Daniels Insurance Inc.
Daniels Insurance has been a trusted partner for insurance needs in New Mexico since 1873. From start-ups to Main-street hospitality businesses, we are the perfect choice to help you mitigate risks and help you continue your business with a peaceful mind. For more information on our coverages, don’t hesitate to call us today at (855) 565-7616.
–