Hotel Insurance Checklist for Franchise Owners
You must follow your franchise rules and protect your hotel from common risks. Use this guide to understand the coverage you need.
The short answer
You must follow your brand rules and protect your hotel from common risks. You need the right insurance to cover your building, guests, and income.
Does my franchise have specific rules?
Most franchise agreements list minimum coverage limits. This is the most money your insurance company will pay for a claim. You must share this agreement with your agent to meet all rules. They will also look for additional insured endorsements. This adds another person or group to your policy. They will also check for waivers of subrogation. This keeps insurance companies from suing others after a loss. Finally, you will need a certificate of insurance to prove you have coverage.
How do I cover my property?
Buy replacement cost coverage. This pays to replace items with new ones. Do not choose actual cash value. That only pays for what an item is worth today. Give your agent these details about your building:
- How you built it
- The year it was built
- How many stories it has
- If you have sprinklers
What about guest accidents?
General liability covers costs if a guest gets hurt. This includes slips in the lobby or accidents at the pool. You should buy higher limits if you have a pool, bar, or restaurant.
Do I need liquor liability?
Yes, if you serve alcohol. Virginia law can hold you responsible if a guest drinks too much at your hotel. This policy helps pay for those costs.
What happens if I have to close?
Business interruption coverage helps if a fire or storm forces you to close. It replaces the money you lose while you make repairs. Make sure the coverage lasts long enough to rebuild your hotel.
How do I handle cyber risks?
Your booking and payment systems have data. A data breach happens if hackers steal that info. Cyber liability covers legal fees and the cost to tell guests their data was stolen.
What about employee theft?
Commercial crime coverage helps if employees steal from you. It protects against employee dishonesty, theft of money, and forgery.
What is umbrella liability?
An umbrella policy adds extra protection. It sits above your other policies if you have a big claim. Hotels often carry 5 million to 10 million dollars in this coverage.
What to do next
Call an independent agent like Trinity Solutions to compare options. An independent agency works with over 30 carriers to find the best plan for you. Call (804) 944-6226 to review your insurance program today.
Ready to get covered?
Start a quote and speak with a licensed agent about available coverage options.