Start with how the operation works
Hotel insurance should account for the property, people, services, and around-the-clock operations that make hospitality unique. For commercial property, property insurance planning connects physical assets, current replacement costs, income, and a realistic recovery timeline.
Operating details to document
- Room count, occupancy, revenue, and amenity schedule
- Building values, renovations, and property-improvement plans
- Pools, food service, shuttle, event, and security procedures
Coverage details to review
- Building, tenant improvement, equipment, and contents values
- Business income, extra expense, and restoration period
- Equipment breakdown, utility interruption, and spoilage where relevant
- Ordinance or law, wind, hail, flood, and other catastrophe considerations
Understand the Factors That Can Affect Cost
A useful review goes beyond selecting a policy name. It connects current information to eligibility, policy structure, and the consequences of a significant loss.
- Separate controllable operating factors from market conditions
- Test how limits, deductibles, and valuations affect the program
- Document risk controls that distinguish the account
Guest injuries and premises liability
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Property and equipment damage
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Business interruption and lost income
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Building, tenant improvement, equipment, and contents values
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Business income, extra expense, and restoration period
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Equipment breakdown, utility interruption, and spoilage where relevant
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Ordinance or law, wind, hail, flood, and other catastrophe considerations
Confirm how this applies to the operation, how it is represented in the application, and where the policy addresses or excludes the exposure.
Information to have ready
- Room count, occupancy, revenue, and amenity schedule
- Building values, renovations, and property-improvement plans
- Pools, food service, shuttle, event, and security procedures
- Current statement of values by location
- Building, contents, inventory, and equipment values
- Revenue and continuing-expense information
- Recent improvements and major system updates
Questions for the coverage review
Which amenities create separate liability or auto exposure?
Document the answer and compare it with the application, quote, endorsements, limits, deductibles, and contractual requirements.
Do values reflect current reconstruction and franchise standards?
Document the answer and compare it with the application, quote, endorsements, limits, deductibles, and contractual requirements.
How would a partial closure affect room revenue?
Document the answer and compare it with the application, quote, endorsements, limits, deductibles, and contractual requirements.
Do the limits reflect present reconstruction and equipment costs?
Document the answer and compare it with the application, quote, endorsements, limits, deductibles, and contractual requirements.
How long would the operation realistically take to restore?
Document the answer and compare it with the application, quote, endorsements, limits, deductibles, and contractual requirements.
Frequently asked questions
Who should use this hotels commercial property guide?
Business owners and insurance buyers can use it to prepare for a focused review of cost and eligibility. It is educational guidance, not a quote or a substitute for policy terms.
What information should a hotels account gather first?
Start with room count, occupancy, revenue, and amenity schedule, building values, renovations, and property-improvement plans, pools, food service, shuttle, event, and security procedures, plus currently valued loss information when available.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, exclusions, and policy terms vary by risk and market. Review actual policy documents with an appropriate insurance professional.