Hotel Insurance Checklist for Franchise Owners
If you own a franchised hotel or motel in Virginia, use this checklist to make sure your insurance program satisfies both your operational risks and your franchisor's requirements.
If you own a franchised hotel or motel in Virginia, your insurance program must satisfy both your operational risks and your franchisor's requirements. Use this checklist to make sure you are covered.
1. Meet Brand-Mandated Coverage Requirements
Most franchise agreements specify minimum coverage limits, additional insured endorsements, waivers of subrogation, and certificates of insurance. Review your franchise agreement carefully and share it with your agent to ensure compliance.
2. Property Coverage
Insure the building, contents, and guest belongings for replacement cost, not actual cash value. Document your construction type, year built, number of stories, and sprinkler protection, as these directly affect your premium.
3. General Liability
Protect against guest injuries, from slip-and-fall in the lobby to pool accidents. Higher limits are recommended for properties with pools, bars, and restaurants.
4. Liquor Liability
If you serve alcohol, you need liquor liability coverage. Virginia law can hold you liable for over-service to intoxicated guests.
5. Business Interruption
If a fire or storm forces you to close, business interruption coverage replaces lost revenue during repairs. Make sure your coverage period is long enough for a full rebuild.
6. Cyber Liability
Online booking systems and payment processing create cyber exposure. A data breach can trigger notification costs, legal fees, and reputational damage.
7. Commercial Crime
Employee theft and fraud are significant risks in hospitality. Crime coverage protects against employee dishonesty, theft of money, and forgery.
8. Umbrella Liability
An umbrella policy adds excess liability coverage above your general liability, auto, and other underlying policies. For a hotel, a $5 million to $10 million umbrella is common.
Work With an Independent Agent
Franchise hotels often need surplus lines markets, especially older properties or those with claims history. An independent agency like Trinity Solutions shops 30+ carriers to find the right fit. Call (804) 944-6226 to review your program.
Ready to get covered?
Start a quote and speak with a licensed agent about available coverage options.