Businesses operating in the hospitality sector must account for many risks and exposures. By employing workers and welcoming guests to your premises, you are responsible for their health and safety. Furthermore, hospitality businesses must navigate a wide variety of hazards daily. Fortunately, a robust and diverse insurance portfolio can provide crucial financial protection.
What Is Hospitality Insurance?
Hospitality businesses are responsible for providing reliable services to customers. This includes businesses that offer lodging, serve food and beverages, assist with travel and tourism, and cultivate recreational or entertainment opportunities. Given the many types of businesses that make up the hospitality sector, specific operations and circumstances vary significantly, and so do their insurance needs. In most cases, hospitality businesses should consider acquiring the following coverages:
- General liability—If your business is responsible for the losses and damages of a third party, such as a guest, this coverage can help pay for claims arising from bodily injury, property damage or personal and advertising injury.
- Commercial property—This coverage can help pay for repair or replacement costs if the property you use to operate your business is lost, stolen or damaged. This may include structures, equipment, inventory, furniture, signage and landscaping.
- Business interruption—If a covered event forces your business to cease its normal operations temporarily, this type of insurance may offer financial assistance for resulting expenses and losses, such as rent, mortgage payments, payroll and lost income.
- Workers’ compensation—If an employee is injured at work or develops a work-related illness, this coverage can help pay for medical treatment, lost wages, disability benefits and legal fees or judgments.
- Commercial umbrella—If a claim exceeds the liability limits of your other insurance policies, this coverage can provide additional financial assistance.
- Employment practices liability—This coverage can help pay for legal representation and settlements if a current or former employee alleges that your business conducted improper employment practices, such as harassment, wrongful termination and discrimination.
While the aforementioned coverages may suit most in the hospitality sector, there may be additional types of insurance that your business could need. For example, you should consider liquor liability coverage if you operate a bar or restaurant. Similarly, commercial auto insurance may be necessary for businesses that provide transportation for guests or otherwise utilize vehicles.
Get the Right Coverage
The hospitality business can be rewarding and exciting, but diligent risk management and loss control practices are essential. Without an adequate insurance package, out-of-pocket costs for even a single incident could have irreparable financial ramifications.
We’re here to help. The agents at FSB Insurance and C&T Insurance have the knowledge and experience to help hospitality businesses in the Jackson, Murfreesboro and Humboldt areas assess their coverage needs and acquire optimal policies. Contact us today to learn more.