Most people are familiar with home and automobile insurance. But what many people are not aware of is that a hotel also needs insurance. Hotels and motels are frequently targets for lawsuits, and those who are in the hotel-motel business are keenly aware of their need to protect their businesses with insurance to protect them from enormous financial losses.
Those who are unfamiliar with hotel-motel insurance may be wondering why they need insurance in the first place. A great question to be sure, as many are unfamiliar with why a hotel would need insurance in the first place.
Reasons Why Hotels-Motels Need Insurance
The most basic form of insurance, this will protect a hotel from lawsuits if a guest is injured or has their property damaged. This offers vital protection for a hotel against potentially expensive lawsuits.
Food Illness Liability
Having a restaurant within their walls is another reason why a hotel needs insurance. Most motels won’t be operating a restaurant, but many hotels do, and food-borne illness insurance is going to protect the company if somehow E. coli or salmonella is served to a guest who becomes sick and wants to sue the hotel.
One of the biggest moneymakers for a hotel is the liquor that is sold at the bars on their premises. Most hotels also offer liquor via room service or even at a minibar in the room. There are a lot of potential dangers that unfortunately come with serving alcohol, and liquor insurance is going to help protect a hotel from a guest becoming intoxicated and injuring themselves or others.
This is one of the most important types of an insurance a hotel needs. It protects the business from a lawsuit by an employee who was injured on the job. Cases like this are sure to occur, as accidents do, but worker’s compensation will protect a hotel from angry employees who may have gotten injured.
There are state regulations that determine exactly what sort of insurance a hotel or motel needs. These are a few of the basic kinds of insurance and basic explanations as to why a hotel needs insurance in the first place!