Hotels and motels are often used interchangeably, but they slightly differ in the services they provide. A hotel offers a wide range of services, from room service to the onsite restaurant, day spas, and gyms, whereas a motel offers only breakfast and a swimming pool. Whether you own a restaurant or vacation resort, you can cover it with hotel and motel insurance.

Here are some important questions about hotel and motel insurance.

Q. What Coverages Are Needed for Hotels and Motels?

The two major coverages required are workers compensation to pay for worker injuries and commercial auto to protect company vehicles. Additionally, hotel and motel owners need commercial property insurance as well as general liability insurance. These plans form a solid foundation for your hotel and motel insurance, but you should also consider coverage extensions based on your requirements.

Commercial property insurance pays for building damage that occurs due to a disaster. General liability covers issues if your business causes injuries to the public. Here are other types of coverage that hotel and motel owners should consider:

• Umbrella coverage - fills gaps in other insurance plans
• Employment practices liability - pays for errors involving employee treatment
• Equipment breakdown - pays for faulty equipment
• Professional or management liability - covers executive errors
• Hospitality errors and omission - pays for mistakes caused by workers

More: Important factors that impact the cost of commercial property insurance

Q. Can I Have the Same Policies in Case I Own More than One Hotel or Motel?

You can put multiple hotels and motels on the same commercial property policy. It can be done either through blanket coverage or scheduling each property individually, depending on the insurer's services. In some cases, you may need to add extensions for unique risks that might only affect one property. For example, a property located in a high crime area will likely need extended coverage.

Q. What Should a Hotel or Motel Owner Request from a Contractor Working on the Property?

All contractors and subcontractors should present proof of general liability coverage as well as workers compensation coverage before signing a contract. This evidence assures you that you won't be sued for injuries to workers on your property.

Q. Are Discounts Available for Hotel and Motel Insurance?

Some insurance agencies offer discounts under certain conditions. As long as your business doesn't have an extensive claims history and you have a track record of paying bills on time, it's possible to qualify for discounts. One of the best ways to lower your insurance costs is to invest in technology that reduces risks, such as a burglar alarm or fire alarm system.

Q. How Much Liability Coverage Does Each Hotel Need?

The amount of liability coverage for each hotel varies according to their risk exposures. Hotels in low-crime areas have lower risks, especially if they've invested in bright lighting, surveillance cameras, and gating and digital code systems. Keeping your hotel and motel properties in good shape can also help lower rates.

Getting the right hotel and motel insurance is essential to protect your hospitality business. By maintaining a safe environment, you can enjoy affordable insurance rates. At Graystone Insurance Group, we're ready to answer all your questions about hotel and motel insurance. Contact us today to get started on your personalized coverage.

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