Why Hotel Insurance is Necessary
The hotel and leisure industry has struggled with the level of uncertainty that has persisted since the beginning of the pandemic. The economic recovery of hotels depends on their ability to stay open and stay protected.
Performance for the industry is not expected to return to pre-pandemic levels until Q4 2022. Throughout 2021, hotels have been only able to 37.4% of their occupancy levels according to econometric forecasts.
At NDML, we look at the consequences of falling foul of health and safety risks as a hotel owner and ask if hotel insurance is worth it.
Hotel Insurance Case Study
An example of the financial costs of breaching health and safety is the Dunstable Holiday Inn Express case. On November 11th 2018, a hotel manager instructed an employee to empty and clean the commercial oil fryer. The individual was burned after picking up the filled container from the oil which had melted through the plastic container. The employee then dropped the container onto the floor, slipped and feel into the hot oil.
Consequentially, the employees received second and third degree burns over 10% of their body. The employee is physically scarred, unable to work and has severe PTSD.
It is a hotel’s legal duty to ensure their hot oil fryer is risk assessed, with control measures in place, and staff are trained through written information and instructions. But the individual had not been properly trained on how to use the fryer. Also, the individual was not wearing adequate safety clothing.
Both the Holiday Inn and RBH Hospitality Management were prosecuted for failings in health and safety. They were ordered to pay thousands of pounds in fines and costs.
Councillor Dalgarno stated: “As a result of poor health and safety, an individual has been left with permanent physical and mental scars. This prosecution sends a message to businesses that, if health and safety laws are breached and members of staff or the public are placed at risk, we will investigate you and prosecute if in the public interest.”
What insurance does a hotel need?
To remain fully covered, the only correct solution is to use a broker who understands your needs. Most hotels will require a range of cover types:
Public Liability Cover for Hotels
Protecting your finances if something happens to a guest or third-party property.
Employer’s Liability for Hotels
Protects hotel owners and managers should something happen to them at work or they receive a claim made by employees.
Buildings and Contents Insurance
Protect finances against theft, fire and flood. Contents can be listed on Sums Insured and then covered if damaged, lost or destroyed.
Business Interruption Insurance for Hotels
Covers finances for the downtime and recovery period should hotel business be unable to provide their regular rate of service.
Money Cover for Hotels
Covers the loss of money which is kept on-site
Terrorism Insurance, Cyber Insurance, Loss Recovery Insurance, Flood Excess Insurance and more are also critical to those business with prevent risk For an effective business risk assessment, see our services.
Commercial Combined Insurance for Hotels
At NDML, we provide tailored insurance care which combines the policies a hotel requires into an understandable and affordable portfolio. Commercial Combined covers all bases and all risks. When paired with our unique Business Protection product, you can have total peace of mind that your business is totally prepared for the unexpected.
Furthermore, Terrorism Insurance, Cyber Insurance, Loss Recovery Insurance, Flood Excess Insurance and more are available with NDML. We will visit your hotel and assess its needs. We can offer a full risk assessment and risk management strategy, crucial for minimising risk of being made subject to a claim.
NDML works with business owners to deliver on the results they expect and deserve. Together, we’ll look at your venue’s unique risk and put together a policy that perfectly protects your business. Don’t allow yourself or your hotel to become a statistic or as the subject of a case study on bad practice; allow yourself great representation today.