You have to be very specific and intentional when insuring your hotel.
The hospitality industry is as unique as the properties themselves, and a one-size-fits-all approach to protecting your business and investment just doesn't cut it. As an agency with deep experience insuring hotels in Mississippi and across the country, we know that the right questions can make all the difference.
When insurance agents don't ask the right questions, they aren't getting a complete picture of your risks. That leaves you and your business vulnerable. Here are three key questions your agent should be asking to ensure your hotel is protected the right way.
What Amenities and Services Do You Offer?
While every amenity adds to your guests' experience, it also introduces new risks. Pools, spas, valet parking, and on-site restaurants all bring their own unique potential hazards. For example, does your insurance include coverage for injuries that could happen in your fitness center or pool? If you offer valet parking, are you covered for liability for valet damage?
Hotels with bars or restaurants also need liquor liability coverage to protect against alcohol-related incidents. And if you host weddings, conferences, or other events, you definitely want additional event coverage. A thorough review of your services is the only way to truly protect every aspect of your business. Your insurance agent should be reviewing every angle of your hotel with you before recommending any coverages.
Do You Host Events or Partner with Vendors?
Many hotels host weddings, corporate events, or community gatherings. They're events that are great for business, but they come with their own unique risks. Does your policy extend to damages caused during a third-party event? What happens if a vendor causes property damage or injury on your premises?
An experienced agent will ask these questions and recommend event liability coverage to shield you from potential claims. Whatever may go sideways when there's an influx of people and vendors on your property, you need to know you're covered.
Are Your Property Valuations Up to Date?
This one's a biggie. So many hotels are underinsured because their property values aren't reviewed regularly. With inflation and rising construction costs, what will it take to rebuild your property? It may be significantly more than what your policy covers.
Any agent should ask detailed questions about your property's current value, including upgrades or renovations. The current value is the key. Not just the value when it was built or purchased. They should also make sure your coverage accounts for everything inside, like furniture, fixtures, and equipment. The last thing you want is to find you're underinsured when facing a loss.
How Are You Protecting Guest Data?
Cyber risks are a growing concern for hotels. Guest data—like credit card numbers and personal information—is a goldmine for cybercriminals. You're vulnerable if your policy doesn't include cyber liability coverage to protect you during a data breach.
If your agent isn't asking about your cybersecurity measures or recommending coverage for potential breaches, it's time to ask why.
Why Experience Matters
The hospitality industry isn't just another box to check—it's a dynamic world with very unique challenges. We understand the challenges because we've spent years working with hotels of all shapes and sizes, from boutique inns on the Mississippi Coast to large chains and national brands.
When you work with us, you're not just getting an insurance policy—you're getting a partner who knows your industry. Our job is to ask the right questions, uncover potential blind spots, and craft coverage as unique as your hotel.