The “Inns” and Outs of Comprehensive Insurance Coverage

Bed & Breakfast owners have to wear many different hats. Between hosting weddings and other large gathering/parties, and entertaining guests for a lovely weekend retreat, there’s a lot of risks that come with the operating a successful Inn. With a commercial innkeeper’s insurance policy, those troublesome risks are covered under one roof; property, inland marine, liquor liability, personal and general liability coverage are bundled into one convenient policy.

For complete protection, there are a number of additional coverage options which should be considered in a commercial policy. These options typically cover losses that would otherwise be excluded.

Additional Coverages to Consider

Not all Bed & Breakfasts are the same nor should be their insurance policies. Additional coverages allow you to tack on to your policy what your business needs. For the complete list of additional coverages available, download our Innkeepers Guidebook at the end of this post.

• Personal Property: This endorsement will cover your personal belongings (clothing, items contained in your personal quarters, etc.).
• Personal Liability: Provides coverage for you and all resident relatives in the event you are sued for a non-business event.
• Loss of Use: Endorsement used to provide the funds to obtain a place to live plus additional living expenses in the event of a loss wherein you cannot live in your home.
• Extended Business Income: Comes into play after the property has been repaired, rebuilt or replaced and operations have resumed. Pays additional loss of income to help you get back on your feet during the first few months once you reopen.
• Mechanical Breakdown: Provides coverage for mechanical equipment (e.g., electrical, air conditioning, computer, telephone systems, heating boilers, refrigeration equipment) should it cease to operate for any reason other than old age. It also covers steam boiler explosion, which is excluded in all other policies. Some coverage will also include the extra cost of expediting repairs, damage to guests’ property, loss of income, food spoilage, electrical arcing and power surges. Check with your agent to see what mechanical equipment is covered and if there are any extra coverages.
• Guests’ Property: This endorsement specifically covers your guests’ property should it be damaged or stolen. The endorsement raises the issue of legal liability and who actually has responsibility for the protection of guests’ property. Discuss this coverage with your agent.
• Liquor Liability: Covers you if giving alcohol away for free, charging for alcohol during an event or selling alcohol in a restaurant you own. Make sure you are aware of liquor license requirements in your jurisdiction. Please note, host liquor coverage is intended to cover an occasional “party” situation hosted by the business. It does not cover you if you are in the business of “manufacturing, distributing, selling, serving, furnishing, or giving away alcoholic beverages.”
• Excess Liability & Umbrella Policies: An excess liability policy increases the limit of liability provided by the underlying comprehensive general liability policy. An umbrella policy increases the limit of liability AND broadens the coverage provided by the underlying comprehensive general liability policy. In addition, it can also cover other policies such as auto and workers’ compensation. The occurrence limit applies per loss, not per person. By purchasing one of these policies, the aggregate and occurrence limits of the underlying policies are increased.

Have the Correct Innkeepers Insurance on Your Side

Rest easy knowing that you have the best, most comprehensive coverage for your Bed & Breakfast. Download our guidebook to see the complete list of available additional coverage options.

Speak with one of our CBIZ Innkeepers Insurance experts today!