What is hotels and hospitality insurance?

Hotels and hospitality insurance is business insurance designed around lodging operations such as hotels, motels, boutique hotels, bed & breakfasts, resorts, and extended-stay properties. Coverage may include commercial property, general liability, business income, workers' compensation, cyber liability, commercial auto, liquor liability, garagekeepers, and umbrella coverage.

What insurance does a hotel need?

Hotels should review commercial property, general liability, business income, workers' compensation, cyber liability, equipment breakdown, commercial auto, umbrella or excess liability, crime, employment practices liability, and additional coverages for liquor, valet, guest vehicles, restaurants, pools, and event space.

Does hotel insurance cover guest slip and fall claims?

General liability may help respond to covered guest bodily injury claims such as slips and falls in lobbies, entrances, parking lots, pool areas, stairs, and walkways, subject to policy terms and claim facts.

Why is business income coverage important for hotels?

Hotels depend on room revenue. If a covered property loss closes rooms, floors, restaurants, event areas, or the entire property, business income and extra expense coverage may help replace lost income and pay additional costs.

Do hotels need cyber liability insurance?

Hotels should review cyber liability because they handle guest names, emails, payment data, reservation records, employee information, Wi-Fi systems, and vendor platforms.

Do hotels need liquor liability?

Hotels that sell or serve alcohol through a bar, lounge, restaurant, banquet, wedding, catered event, or room service should review liquor liability coverage.

Does hotel insurance cover valet parking?

Hotels with valet or guest vehicle handling should review garagekeepers, commercial auto, liability, driver screening, and key control procedures.

Can Casurance review hotel franchise or lender insurance requirements?

Yes. Casurance can help review hotel franchise, lender, landlord, and management company insurance requirements and assist with certificate support after coverage is bound and available.

Insurance for Hotels, Motels & Hospitality Businesses

Hotels and hospitality businesses face risk every day from guest traffic, room operations, housekeeping, maintenance, parking lots, pools, restaurants, bars, reservation systems, payment data, shuttle vehicles, valet parking, laundry equipment, and property damage. Casurance helps hotel and hospitality operators review Travelers commercial insurance options that may help protect the building, business income, employees, vehicles, guest-facing operations, cyber systems, and liability exposures.

Hotel InsuranceMotel InsuranceHospitality InsuranceCommercial PropertyGeneral LiabilityBusiness IncomeWorkers' CompensationCyber LiabilityEquipment BreakdownUmbrella / Excess

Who Needs Hotels & Hospitality Insurance?

This class page applies to hospitality businesses such as:

Hotels

Motels

Boutique hotels

Luxury hotels

Franchise hotels

Independent hotels

Bed & breakfasts

Inns

Extended-stay properties

Resorts

Small lodging operators

Hotel ownership groups

Hotel property managers

Hospitality businesses with pools, breakfast service, restaurants, bars, shuttles, valet, or event space

Coverage needs can vary based on property size, number of rooms, amenities, construction, location, employees, vehicles, alcohol service, guest vehicle handling, cyber systems, and franchise or lender requirements.

Hotel guest rooms protected by commercial property insurance

Why Hotels Need Specialized Business Insurance

Guest slip and fall claims

Pool and walkway injuries

Parking lot accidents

Guest property complaints

Room fires

Burst pipes and water damage

Laundry or HVAC equipment breakdown

Elevator or mechanical issues

Business interruption after covered property loss

Employee injuries

Shuttle vehicle accidents

Valet damage to guest vehicles

Liquor-related incidents

Cyber incidents involving guest data or payment systems

Theft, vandalism, and crime

Franchise, lender, and certificate requirements

Hotel premises where guest slip and fall claims can occur

Real-Life Hotel Claim Scenarios

Guest Slip in Lobby

A guest walks into the lobby during rainy weather, slips near the entrance, and files an injury claim.

General Liability, Umbrella

Water Damage Closes Rooms

A pipe bursts above several guest rooms, causing cancellations and repair work.

Commercial Property, Business Income, Extra Expense

Housekeeping Injury

A housekeeper injures her back while lifting linens or turning mattresses.

Workers' Compensation

HVAC Breakdown

The HVAC system fails during peak occupancy and rooms cannot be rented.

Equipment Breakdown, Business Income

Reservation System Breach

Guest payment or reservation data may have been exposed.

Cyber Liability

Valet Damages Guest Vehicle

A valet employee damages a guest's vehicle while parking it.

Garagekeepers, Commercial Auto

Hotel Shuttle Accident

A hotel shuttle is involved in an accident while transporting guests.

Commercial Auto, Umbrella

Bar or Banquet Alcohol Claim

A guest is allegedly overserved at a hotel event.

Liquor Liability, General Liability, Umbrella

Hotel housekeeping employee preparing a guest room

Coverage Options to Review

Coverage cards Casurance and Travelers typically review with hotel and hospitality operators.

Commercial Property

Helps protect the hotel building, guest rooms, lobby, furniture, signs, laundry equipment, kitchen equipment, and covered business personal property.

Business Income / Extra Expense

May help replace lost income and extra costs if a covered property loss shuts down rooms, floors, restaurants, or the entire hotel.

General Liability

Helps respond to covered claims involving guest injuries, property damage, lobby falls, walkway incidents, and premises liability.

Workers' Compensation

Helps cover employee injuries involving housekeeping, front desk, maintenance, kitchen, shuttle, and management staff.

Equipment Breakdown

For covered breakdowns involving HVAC, boilers, elevators, laundry systems, refrigeration, generators, kitchen equipment, and electrical systems.

Cyber Liability

Helps respond to guest data exposure, ransomware, reservation platform incidents, payment system breaches, and phishing events.

Commercial Auto

For hotel-owned shuttles, vans, maintenance vehicles, or business-use vehicles.

Hired and Non-Owned Auto

For rented vehicles or employee-owned vehicles used for hotel business, where available.

Liquor Liability

For hotels with bars, lounges, restaurants, banquets, weddings, events, catering, or room-service alcohol.

Garagekeepers / Valet

For hotels that take care, custody, or control of guest vehicles through valet or parking operations.

Crime / Employee Dishonesty

For theft of money, securities, deposits, or dishonest employee acts where coverage applies.

Employment Practices Liability

For employment-related claims such as wrongful termination, harassment, discrimination, or retaliation.

Umbrella / Excess Liability

Adds higher limits over eligible underlying liability policies.

Hotel mechanical equipment and laundry systems

What We Need to Review Hotels & Hospitality Coverage

Legal business name and DBA

Hotel address

Number of rooms

Type of property: hotel, motel, boutique hotel, resort, B&B, extended-stay

Year built

Construction type

Number of stories

Interior corridor or exterior corridor

Sprinkler and fire alarm information

Building replacement cost

Business personal property value

Business income estimate

Annual revenue

Payroll

Employee count

Average occupancy

Average daily room rate

Pool, spa, gym, restaurant, bar, banquet, or event space

Liquor sales

Cyber/payment/reservation system details

Franchise, lender, landlord, or management requirements

Current policy

Loss runs if available

Hotel reservation and payment systems with cyber exposure

What Affects Hotels & Hospitality Insurance Cost?

These are the main factors Travelers underwriters typically review when pricing this class:

Location
Building age
Construction type
Number of rooms
Property values
Business income values
Revenue
Payroll
Employee count
Amenities
Pool, gym, spa, restaurant, bar, or event space
Shuttle or valet operations
Liquor exposure
Cyber controls
Fire protection
Security controls
Claims history
Coverage limits
Deductibles
Umbrella or excess liability needs
Franchise or lender insurance requirements

Related Coverage & Industry Pages

Hotel Insurance Industry Overview Commercial Property General Liability Workers' Compensation Commercial Auto Umbrella / Excess Liability Cyber Liability Business Owners Policy Equipment Breakdown Restaurants & Food Service Industry Commercial Real Estate Industry

Frequently Asked Questions

Review Your Hotels & Hospitality Insurance With Casurance

Whether you operate a hotel, motel, boutique hotel, bed & breakfast, resort, or extended-stay property, Casurance can help review Travelers commercial insurance options for your property, liability, employees, vehicles, cyber systems, guest operations, and certificate requirements.

Coverage is subject to underwriting approval, state availability, policy terms, exclusions, conditions, and limits. This page is for general information only and does not modify any insurance policy.

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