If you own or manage a hotel, then you are no doubt familiar with just how much it can cost to get adequate hotel insurance.
In this post we will outline some of the factors that can affect the cost of hotel insurance, and explore some ways you can bring down the price of your policy.
What Can Affect The Cost of Hotel Insurance?
- Your hotel’s size. A bigger hotel means more rooms, which means more guests, which means more risks. So, the bigger your hotel, the more you might expect to pay for hotel business insurance.
- Your employees. The size of your workforce can also affect the price of your policy. Once again, the more employees you have, the more you should expect to pay. But you should also consider that different employees will face different risks, which can itself influence the cost of cover. Your kitchen staff, for example, will potentially face more risks than your front desk or back office staff.
- Your hotel’s location. If you are located in an inner city area, your hotel may face a higher risk of theft. If you are located on the seafront, your hotel will be more vulnerable to floods, and to damages from adverse weather conditions. Insurers will take all of this into consideration when calculating the cost of your cover.
- Your amenities. You may have to pay more for cover if you offer certain amenities that bring added risks, such as swimming pools, spas, and sport facilities.
Get a Risk Assessment For Your Hotel
Insurance is all about risk. When calculating your premiums, insurers will consider the specific risks that your hotel, your guests, and your employees may face.
If you take action to manage, reduce, or eliminate these risks, it can help to bring down the cost of your cover.
So, to begin with, conduct a thorough risk assessment for your hotel. Identify all of the things that could possibly go wrong, taking into account your building, your fixtures and fittings, your amenities and facilities, your staff, and your guests.
Assess how likely it is that each risk you have identified will lead to harm, and also how severe the harm might be for every possible risk. This should give you an idea of the sort of measures you can introduce to address these risks.
Take Action to Minimise Risk in Your Hotel
Here are some of the actions that could help bring down the price of your hotel business insurance premiums.
Please note that this list is not exhaustive, and the impact these measures might have on your premiums might vary depending on your specific circumstances:
- Get extra security, including alarms, CCTV, dedicated security staff, and motion activated lights.
- Invest in training and development for your staff. This could incorporate workplace health and safety, first aid, fire safety, and even cybersecurity awareness. Make this training a part of every member of staff’s induction, and make sure everyone gets a refresher at least once a year.
- Consider your fire risks, and your fire response policy and procedures. Invest in new fire safety equipment, and be sure to replace any items that may be approaching their use-by dates. Also think about how you can aid escape and minimise damage in the event of a fire, with sprinkler and smoke control systems.
- Consider your flood risks. Read our guide to how you can safeguard your business against floods.
Get The Right Kind of Insurance For Your Hotel
What sort of insurance does it take to cover a hotel?
Among other things, you will need to consider cover for your:
- Buildings
- Fixtures, fittings, furniture, and equipment
- Employees
- Guests
- Vehicles
- Stock
Combine Separate Policies into One Combined Hotel Insurance Policy
Do you have a separate policy for every aspect of your hotel business? If so, you may be paying more than necessary. It is often possible to make significant savings if you combine your policies into a single dedicated hotel insurance policy.
There are added benefits to getting a single policy. It means you will only ever pay one premium, and should you ever have to make a claim, you will have a single point of contact and a single process to manage.
You might be able to make additional savings on your policy if you:
- Pay for your cover annually, rather than monthly
- Pay a higher excess (though this could cause you some issues in the event of a claim)
Work With an Insurance Broker
If you are looking to renew your hotel insurance policy, you will likely compare quotes from multiple insurers to ensure you get the best price for your cover.
This is good practice. But if you want to save money on the cost of cover for your hotel, it is much better to work with a dedicated insurance broker.
A broker will take the time to get to know your hotel, your staff, and the sort of guests you cater for. When they fully understand your insurance requirements, they will work to tailor an insurance package that meets all of your needs at the best possible price.
Working with a broker can be more cost-effective in more ways than one. If you only pay for the cover you need, then you will not pay excessively for any cover you do not need. Plus, there will be no risk of any gaps in your cover, or of any unnecessary duplicated cover across multiple policies.
An insurance broker may also be able to assist you in your hotel risk assessment, advising on the sort of measures that could help bring down the price of your policy.
We Can Help You Get the Tailored Hotel Insurance You Need
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. We are committed to protecting your hotel, your staff, and your guests from every risk you might possibly face. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.
Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.