Hotels and Resorts Insurance

Running a hotel or resort comes with more than just hospitality—it comes with risk. From guest injuries to cyber threats, Heffernan Insurance Brokers offers custom insurance solutions that protect your property, staff, and reputation.

What Is Hotels and Resorts Insurance?

Hotels and resorts insurance is a specialized commercial insurance package designed to cover the broad exposures faced by hospitality properties. These policies protect against financial loss from events like property damage, guest liability claims, employee injuries, liquor-related incidents, and cyber breaches.

Coverage can be tailored to include general liability, commercial property, workers’ compensation, business interruption, employment practices liability (EPLI), and cyber insurance—ensuring comprehensive protection for 24/7 operations.

Who Needs It?

Hotels and resorts insurance is essential for:

• Boutique hotels and inns
• Full-service and luxury resorts
• National hotel franchises
• Motels and extended-stay properties
• Lodges, spas, and wellness retreats
• Operators managing multiple hospitality properties

If your business hosts overnight guests, serves food or alcohol, operates recreational amenities, or hires seasonal staff, you’re exposed to industry-specific risks that require specialized coverage.

What It Covers

Hotels and resorts insurance can include:

• Commercial Property Insurance – Covers buildings, guest rooms, fixtures, signage, and furnishings against fire, weather, theft, and vandalism.
• General Liability – Protection if a guest slips and falls, or causes third-party injury or property damage.
• Business Interruption Insurance – Compensates for lost income if your hotel or resort is shut down due to a covered event.
• Workers’ Compensation – Required in most states; covers medical expenses and lost wages for injured staff.
• Liquor Liability – For hotels that serve alcohol at bars, restaurants, or via room service.
• Cyber Liability – Protects sensitive guest data, payment systems, and reservation software from breaches.
• Employment Practices Liability (EPLI) – Covers claims related to wrongful termination, discrimination, and harassment.
• Umbrella Liability – Adds higher limits to your core liability policies for broader protection.

Common Risks for Hotels and Resorts

Operating a hospitality property presents a complex set of risks, including:

• Guest Injuries and Lawsuits
  Slips, falls, elevator accidents, and pool incidents can quickly lead to legal claims and reputational harm.
• Property and Structural Damage
  Fires, floods, vandalism, and weather events can disrupt business operations and damage facilities.
• Liquor-Related Incidents
  Alcohol service increases liability exposure, especially if incidents involve intoxicated guests or third-party injury.
• Cybersecurity Breaches
  Hotels are high-value targets for cybercrime due to large volumes of stored guest data and online booking systems.
• Employee Injuries and HR Claims
  Housekeeping, food service, and maintenance roles often involve physical risk. High turnover also increases EPLI exposures.

Heffernan works with you to proactively manage these risks while securing the right coverage to mitigate financial loss.

Cost of Coverage

The cost of hotel and resort insurance depends on several factors:

• Property value and square footage
• Location and natural disaster risk (e.g., wildfire, flood zones)
• Number of rooms and annual occupancy
• On-site amenities (pools, spas, restaurants, event spaces)
• Liquor service or entertainment exposure
• Number of employees and payroll size
• Claims history and loss runs

Most hospitality clients can expect bundled commercial policies to range from $5,000 to $50,000+ annually, depending on size and risk. Heffernan shops policies across multiple top-rated carriers to deliver the best value for your unique operation.