Hotels & Lodging Coverage Guide
Hotels face guest-injury (slip/fall, pool, balcony), liquor liability, assault-and-battery from inadequate security, and human-trafficking liability — a relatively new but real exposure that's reshaped hospitality underwriting.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Guest injuries (slip/fall, pool, balcony), invitee injuries, advertising injury.
Common misconception
Hotel premises liability is broad and includes pool, parking lot, fitness room, and even off-premises shuttle.
What it does NOT cover
Liquor. Assault & battery often sub-limited. Auto-related claims.
The gap — what happens without it
Guest drowns in pool with non-compliant signage — $1.4M wrongful death claim. GL pays.
What drives your premium
Rooms, amenities (pool, fitness, restaurant), claims
Endorsements to ask about
Pool/spa coverage explicit. Assault & battery sub-limit. Innkeeper's liability for guest property.
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Housekeeping injuries (lifting, repetitive motion, chemical exposure), maintenance injuries, food service injuries.
Common misconception
Housekeepers have one of the higher injury rates in hospitality due to repetitive motion and chemical exposure.
What it does NOT cover
Owner exemption.
The gap — what happens without it
Housekeeper develops chronic back injury — $42K medical. WC pays.
What drives your premium
Payroll, class codes (9052/9053), state, claims
Endorsements to ask about
All-states.
Commercial Property
Covers your building, equipment, and inventory
What it covers
Building, contents, FF&E. Hotels are high-value property.
Common misconception
Replacement cost can be 1.5x what owners think due to renovation/code requirements.
What it does NOT cover
Flood. Earthquake. Mechanical breakdown.
The gap — what happens without it
Fire damages 4 floors — $1.2M. Property pays.
What drives your premium
Construction, fire suppression, location
Endorsements to ask about
Equipment breakdown. Ordinance or law. Business income.
Business Interruption
Covers lost income when operations are disrupted
What it covers
Lost room revenue during closure.
Common misconception
Hotels have high fixed costs; BI is essential.
What it does NOT cover
Pandemic.
The gap — what happens without it
Fire closes 6 months — $2M lost revenue. BI pays.
What drives your premium
Revenue, restoration time
Endorsements to ask about
Extended period. Civil authority.
Important Coverage
Cyber Liability
Covers data breaches, ransomware, and digital threats
What it covers
Breach response for guest credit cards, loyalty program data; PCI fines.
Common misconception
Hotels are major payment-card breach targets — see Marriott, Hyatt.
What it does NOT cover
Unencrypted devices.
The gap — what happens without it
POS breach exposes 8,000 guest cards — $480K response cost. Cyber pays.
What drives your premium
Records, MFA, claims
Endorsements to ask about
PCI fines. Funds-transfer fraud.
Liquor Liability
Covers claims arising from serving alcohol
What it covers
Hotels with bars/restaurants serving alcohol need separate liquor liability for dram-shop exposure.
Common misconception
Hotel GL doesn't include liquor — even small lobby bars require it.
What it does NOT cover
Service to minors. Intoxicated patrons.
The gap — what happens without it
Wedding guest over-served at hotel bar causes fatal accident — $2M settlement. Liquor liability pays.
What drives your premium
Alcohol revenue, claims
Endorsements to ask about
Banquet/event coverage.
Employment Practices Liability (EPLI)
Covers wrongful termination, discrimination, and harassment claims
What it covers
Employment claims; large staff makes EPLI essential.
Common misconception
Hotels have high turnover and harassment exposure.
What it does NOT cover
Wage/hour.
The gap — what happens without it
Front desk associate alleges harassment — $80K. EPLI pays.
What drives your premium
Employees, state
Endorsements to ask about
Wage/hour. Third-party (guest harassment of staff).
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.