Hotel Insurance from Massachusetts Specialists

What is Hotel Insurance?

Hotels are exposed to a wide range of risks by the nature of what they do, and it’s important to protect the sizeable investments that are poured into a hotel from those risks whenever possible. For hotels in Massachusetts, purchasing hotel insurance often plays an integral role in protecting against many of the risks that come with this industry.

Hotel insurance is specialized commercial insurance for hotels and similar businesses. Since these businesses face many different risks, policies are usually underwritten as package policies that bundle several coverages together. In most cases, hotels can choose the precise combination of coverages that are included in their policy.

What Businesses in Massachusetts is Motel Insurance For?

Most Massachusetts hotels and motels can benefit from having motel insurance in place. Businesses shouldn’t get hung up on whether the insurance is referred to as “hotel” or “motel” insurance, for the two are essentially interchangeable because the different businesses often have nearly identical insurance needs.

Other businesses that offer lodging might have similar insurance needs, but not quite as similar as hotels and motels. Bed and breakfasts, multi-site short-term rental operators and glamping companies all face slightly different risks that sometimes necessitate a slightly different policy, for example.

An insurance agent who specializes in motel insurance can help lodging businesses decide whether this or another insurance option best meets their needs.

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What Protections Does Motel Insurance Make Available?

While the exact protections that motel insurance policies make available can vary, most offer a variety of property and liability coverages. The former of these normally safeguards assets that a hotel owns, and the latter generally protects against third-party claims that could be filed against a hotel.

Some of the property coverages that are frequently available and purchased include:

General Property Coverage, which might cover a hotel’s building, secondary structures and some other property
Equipment Breakdown Coverage, which might cover a hotel’s furnace, air conditioning and other essential equipment against breakdowns
Food Spoilage Coverage, which might cover foods used for complimentary breakfasts, room service or a restaurant against disaster-caused spoilage
Utility Interruption Coverage, which might cover operational disruptions that loss of utilities cause
Business Income Coverage, which might cover operational disruptions that certain disasters cause
Crime Coverage, which might cover theft by employees or burglars

Some of the liability coverages that are frequently available and purchased include:

General Liability Coverage, which may cover basic accidents that result in guest or vendor injury
Liquor Liability Coverage, which may cover alcohol-related incidents if a hotel offers adult beverages
Food-Borne Illness Liability Coverage, which may cover guest illnesses that improperly prepared foods cause
Premises Pollution Liability Coverage, which may cover guest illnesses that molds or airborne contaminants cause
Cyber Liability Coverage, which may cover ransomware attacks, DDOS attacks, other hacking attempts and data breaches
Employment Practices Liability Coverage, which may cover allegations of employment discrimination that’s prohibited
Commercial Auto Liability Coverage, which may cover shuttles or vans that a hotel provides guests rides with

There are still more coverages that policies can offer. An experienced insurance agent can help sort through all of the available ones.

How Are Hotel Policy Premiums Determined?

Insurance companies look at many different factors when calculating premiums for hotel policies. A hotel’s location, number of rooms, additional amenities, annual revenue and claims history are merely some of the factors that can influence cost. An independent insurance agent can show hotels how much insurance will be in their particular situation.