Like virtually all businesses, hotels need property and liability insurance. Property insurance covers vandalism damage to the building and the contents of the hotel. It also protects the hotel from a variety of other perils such as fire, windstorm, explosion, or water damage from plumbing, etc. The insurance policy should also cover business interruption in the event vandalism or another peril causes a temporary shutdown while the damage is being repaired. Liability insurance protects the hotel against claims and lawsuits due to injuries sustained on the premises.
Hotels have other specialized insurance needs such as innkeepers’ liability (covers loss to guests’ property), business auto (if autos are used, say for shuttle services), workers’ compensation, power interruption, etc.).
Since the hotel business is a specialized business, its insurance program requires the attention of a professional insurance agent or broker who understands the business and its insurance needs.