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An Overview of the Diverse Insurance Needs for Hotels

As an insurance producer, it’s important to know what hotel insurance is and what it can cover. That way, you can offer this type of insurance to your clients in the hospitality industry. Here at Prime Insurance Company, we are here to help you every step of the way. We can write customized coverage for this type of insurance, allowing you to write more business. Please read on to learn more about this insurance and how it can help you and your clients.

What is Hotel Insurance?

Hotel insurance is – insurance that covers the hotel against risks like damage to the hotel caused by natural calamities or accidents. It can also cover theft of items from inside the hotel, medical expenses incurred due to injury/illness of guests.

Who should buy hotel insurance?

Any person who owns a hotel or manages one should buy this insurance since they are responsible for the property and people present in it.


This policy can provide coverage for personal belongings, medical expenses, liability cost, damage due to fire & storm, and much more.

Types of Insurances:

This policy can be classified into two types-coverage for both building and contents (sometimes called all risk) and coverage only for buildings (such as covering fire).

3 Vital Things You Need to Know About Hotel Insurance

Hotels are one of the most popular travel destinations in the world. The American Hotel and Lodging Association reports that there are 54,200+ hotel properties in the United States, filling over 5 million guestrooms and that there are more than 1.1 billion guests nights annually in the United States. Because of the growth in the hotel industry, there has been a rise in hotel insurance demand. But what do we need to know about hotel insurance?

There are three things you need to know:

1) Who offers this type of coverage and why your clients should consider it: Insurance companies offer this type of coverage  because there are many risks involved with operating a hotel. Your clients need it because it can help protect them against frivolous lawsuits and it can help protect their assets or recover from financial loss.

2) Different types of insurance coverages available for hotels: There are various types of coverages available when it comes to hotel insurance including commercial property, general liability, commercial auto, active shooter, communicable disease, and more.

3) What happens when your clients don’t have hotel insurance: Whether your client is part of a big hotel chain or a small local one, they become a huge target for lawsuits and are much more likely to suffer from financial loss.

4 Reasons Why Your Client Should Always Get Your Hotel Insurance From A Reputable Company

  1. Your client needs to know that if anything goes wrong with their hotel, they have proper insurance coverage.
  2. It’s also worth having the peace of mind that they’re being looked after by a reputable company who will be there for them 24 hours a day, 7 days a week.
  3. If a lawsuit is filed against your client, you want to have an insurance partner who will fight frivolous claims and stay by their side every step of the way.
  4. Protect their assets. Knowing that their business is safe thanks only to the risk management expertise and customized coverage from a reliable insurance company can go a long way!

Explanation of the Types of Coverage a Hotel Might Need

There are different types of coverages that hotels might need. The type of coverage they need can depend on the state where it is located, the size of the hotel, what amenities it offers (such as a swimming pool, gym, spa, etc.), and more.

There are many types of coverage your client can have on their insurance policy, including:

  • Commercial property: Property damage coverage, or PD coverage, is protection against damages to the building and its contents. This includes damages caused by fire, wind, water leaks, theft, and vandalism.
  • General liability: Liability insurance protects against third-party bodily injury or property damage.
  • Business interruption: Business interruption insurance covers lost income due to a temporary shutdown following an event such as a fire, theft, flood, etc.
  • Commercial auto: Provides coverage if staff uses a vehicle for business purposes such as a shuttle bus transporting guests to and from the airport.
  • Active shooter coverage: Liability coverage in the event of an active shooting at your client’s hotel.
  • Alleged assault and battery liability: Protects staff against claims for assault and battery.
  • Alleged sexual abuse and molestation liability: Protects staff against claims for sexual abuse or molestation.
  • Communicable disease coverage: This is a policy enhancement that provides coverage for negligent exposure to any Declared Pandemic Disease or Pathogen, including COVID-19!

Why Choose Prime Insurance Company As Your Hotel Insurance Provider

Prime Insurance Company is an excess and surplus (E&S) lines insurance company, specializing in property and casualty insurance for specialty and hard-to-place risks. Prime writes E&S business in all 50 states and is rated “A” (Excellent) by A.M. Best.

By managing underwriting, policy services, risk management, and claims handling in-house, we have a proven track record of providing insurance services in a cost-effective, focused manner with both the producer and the insured in mind.

With offices in Salt Lake City, UT; Chicago, IL; Exton, PA; and Naples, FL; Prime currently produces in excess of $300 million gross premiums annually.

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