If you own a bed and breakfast, you know how important it is to have the right insurance. Not only can it protect you financially in the event of an accident or disaster, but it can also help you attract guests and keep your business running smoothly.
There are many different insurance policies available to bed and breakfast owners, so it’s important to choose the ones that are right for your specific needs. Some of the most common types of insurance include:
In this article, we’ll take a closer look at each of these types of insurance and explain why they’re important for bed and breakfast owners. We’ll also provide tips on how to choose the right policies and get the best coverage for your business.
Best insurance policies for bed and breakfast owners
Protect your business and your guests.
- Property insurance
- Liability insurance
- Business interruption insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Flood insurance
- Equipment breakdown insurance
- Cyber liability insurance
- Liquor liability insurance
- Innkeeper’s liability insurance
Talk to an insurance agent to find the right coverage for your bed and breakfast.
Property insurance
Property insurance is an essential coverage for bed and breakfast owners. It protects your physical property, such as your building, furniture, and equipment, from damage or destruction caused by covered perils, such as fire, theft, vandalism, and natural disasters.
- Replacement cost coverage:
This coverage pays to replace your property with new items of like kind and quality, up to the policy limits.
- Actual cash value coverage:
This coverage pays the depreciated value of your property at the time of the loss.
- Extended replacement cost coverage:
This coverage provides additional coverage for the increased cost of replacing your property with new items that are more expensive than the original items.
- Loss of income coverage:
This coverage reimburses you for lost income if your bed and breakfast is damaged or destroyed and you are unable to operate your business.
The amount of property insurance coverage you need will depend on the value of your property and the amount of income you generate from your bed and breakfast. Talk to your insurance agent to get a quote for property insurance.
Liability insurance
Liability insurance protects you from financial liability if someone is injured or their property is damaged as a result of your business operations. There are two main types of liability insurance that bed and breakfast owners should consider:
General liability insurance: This coverage protects you from claims of bodily injury or property damage that occur on your premises or as a result of your business operations. For example, if a guest slips and falls in your bed and breakfast, or if you accidentally damage a guest’s belongings, general liability insurance would cover the cost of their medical bills or property repairs.
Product liability insurance: This coverage protects you from claims that a product you sold or served caused injury or damage. For example, if a guest gets sick from eating food that was prepared in your bed and breakfast, product liability insurance would cover the cost of their medical bills and any legal fees.
The amount of liability insurance coverage you need will depend on the size of your bed and breakfast and the number of guests you serve. Talk to your insurance agent to get a quote for liability insurance.
In addition to general liability and product liability insurance, bed and breakfast owners may also want to consider purchasing:
- Liquor liability insurance: This coverage protects you from claims related to the sale or service of alcohol. For example, if a guest gets drunk at your bed and breakfast and causes damage to property or injures someone, liquor liability insurance would cover the cost of the damages or injuries.
- Innkeeper’s liability insurance: This coverage protects you from claims related to the loss or damage of guests’ belongings. For example, if a guest’s luggage is stolen or damaged while staying at your bed and breakfast, innkeeper’s liability insurance would cover the cost of the loss or damage.
Talk to your insurance agent to learn more about these and other types of liability insurance that may be available to bed and breakfast owners in your area.
Business interruption insurance
Business interruption insurance reimburses you for lost income and other expenses if your bed and breakfast is forced to close temporarily due to a covered peril, such as a fire, flood, or natural disaster. This coverage can help you keep your business afloat while you are unable to operate.
- Lost income coverage:
This coverage reimburses you for the income you lose as a result of the closure of your bed and breakfast. This includes revenue from room rentals, food and beverage sales, and other sources.
- Continuing expenses coverage:
This coverage reimburses you for ongoing expenses, such as rent, utilities, and employee salaries, that you continue to incur even though your bed and breakfast is closed.
- Extra expense coverage:
This coverage reimburses you for additional expenses that you incur as a result of the closure of your bed and breakfast, such as the cost of renting a temporary location or hiring additional staff.
- Contingent business interruption coverage:
This coverage reimburses you for lost income and expenses if a supplier or other business that you rely on is forced to close due to a covered peril.
The amount of business interruption insurance coverage you need will depend on the size of your bed and breakfast and the amount of income you generate. Talk to your insurance agent to get a quote for business interruption insurance.
Workers’ compensation insurance
Workers’ compensation insurance provides wage replacement and medical benefits to employees who are injured or become ill as a result of their job. This coverage is required by law in most states, and it helps to protect bed and breakfast owners from financial liability in the event of a workplace accident or illness.
Workers’ compensation insurance typically covers the following benefits:
- Medical benefits: This coverage pays for the medical treatment of work-related injuries and illnesses, including doctor’s visits, hospital stays, surgery, and rehabilitation.
- Wage replacement benefits: This coverage pays a portion of an employee’s lost wages if they are unable to work due to a work-related injury or illness. The amount of wage replacement benefits is typically capped at a certain percentage of the employee’s average weekly wage.
- Death benefits: This coverage provides a death benefit to the family of an employee who dies as a result of a work-related injury or illness. The amount of the death benefit is typically based on the employee’s average weekly wage and the number of dependents they have.
The cost of workers’ compensation insurance varies depending on the state in which your bed and breakfast is located, the number of employees you have, and the type of work that your employees perform. You can get a quote for workers’ compensation insurance from your insurance agent.
In addition to workers’ compensation insurance, bed and breakfast owners may also want to consider purchasing:
- Employer’s liability insurance: This coverage protects you from lawsuits filed by employees who claim that they were injured or became ill as a result of your negligence.
- Occupational accident insurance: This coverage provides benefits to employees who are injured in an accident that occurs while they are working.
Talk to your insurance agent to learn more about these and other types of insurance that may be available to bed and breakfast owners in your area.
Commercial auto insurance
Commercial auto insurance provides coverage for vehicles that are used for business purposes. This includes vehicles that are owned by the business, as well as vehicles that are leased or rented. Commercial auto insurance can help to protect bed and breakfast owners from financial liability in the event of an accident involving a business vehicle.
Commercial auto insurance typically covers the following:
- Liability coverage: This coverage pays for bodily injury and property damage that is caused to others as a result of an accident involving a business vehicle.
- Collision coverage: This coverage pays for damage to the business vehicle as a result of a collision with another vehicle or object.
- Comprehensive coverage: This coverage pays for damage to the business vehicle that is caused by something other than a collision, such as fire, theft, or vandalism.
The cost of commercial auto insurance varies depending on the type of vehicle, the number of vehicles, the annual mileage, and the driving record of the drivers. You can get a quote for commercial auto insurance from your insurance agent.
In addition to commercial auto insurance, bed and breakfast owners may also want to consider purchasing:
- Hired and non-owned auto insurance: This coverage provides liability coverage for vehicles that are rented or borrowed by the business.
- Umbrella insurance: This coverage provides additional liability protection above and beyond the limits of the commercial auto insurance policy.
Talk to your insurance agent to learn more about these and other types of insurance that may be available to bed and breakfast owners in your area.
Flood insurance
Flood insurance is a type of insurance that protects your property from damage caused by flooding. This coverage is not typically included in standard homeowners or business insurance policies, so it is important to purchase a separate flood insurance policy if you are located in an area that is at risk of flooding.
Flood insurance is available from the National Flood Insurance Program (NFIP) and from private insurers. NFIP flood insurance is typically less expensive than private flood insurance, but it may not be available in all areas. Private flood insurance policies may offer more coverage options and higher coverage limits than NFIP policies.
Flood insurance typically covers the following:
- Building coverage: This coverage pays for damage to the structure of your bed and breakfast, including the foundation, walls, roof, and electrical and plumbing systems.
- Contents coverage: This coverage pays for damage to your personal belongings, such as furniture, appliances, and clothing.
- Loss of use coverage: This coverage pays for additional living expenses, such as hotel bills and restaurant meals, if you are unable to live in your bed and breakfast due to flood damage.
The cost of flood insurance varies depending on the location of your bed and breakfast, the elevation of your property, and the amount of coverage you purchase. You can get a quote for flood insurance from your insurance agent.
If you are located in an area that is at risk of flooding, it is important to purchase flood insurance to protect your bed and breakfast from financial devastation. Talk to your insurance agent to learn more about flood insurance and to get a quote.
Equipment breakdown insurance
Equipment breakdown insurance protects your business from financial losses caused by the breakdown of essential equipment. This coverage is especially important for bed and breakfast owners who rely on equipment such as refrigerators, freezers, stoves, and air conditioners to operate their business.
- Coverage for equipment breakdown:
This coverage pays for the cost of repairing or replacing equipment that breaks down due to a covered peril, such as a power surge, mechanical failure, or operator error.
- Loss of income coverage:
This coverage reimburses you for lost income if your business is unable to operate due to a covered equipment breakdown.
- Extra expense coverage:
This coverage reimburses you for additional expenses that you incur as a result of an equipment breakdown, such as the cost of renting replacement equipment or hiring additional staff.
- Food spoilage coverage:
This coverage reimburses you for the cost of food that spoils due to an equipment breakdown, such as a power outage.
The cost of equipment breakdown insurance varies depending on the type of equipment you have, the value of your equipment, and the amount of coverage you purchase. You can get a quote for equipment breakdown insurance from your insurance agent.
Cyber liability insurance
Cyber liability insurance protects your business from financial losses caused by a data breach or other cyber incident. This coverage is becoming increasingly important for bed and breakfast owners as more and more businesses are storing and transmitting sensitive customer data electronically.
Cyber liability insurance typically covers the following:
- Data breach coverage: This coverage pays for the costs associated with a data breach, such as notifying affected customers, providing credit monitoring services, and defending against lawsuits.
- Cyber extortion coverage: This coverage pays a ransom to a hacker if necessary to prevent or stop a cyber attack.
- Business interruption coverage: This coverage reimburses you for lost income if your business is unable to operate due to a cyber attack.
- Cyber crime coverage: This coverage reimburses you for losses caused by cyber crimes, such as fraud, theft, and identity theft.
The cost of cyber liability insurance varies depending on the size of your business, the amount of sensitive data you store and transmit, and your industry. You can get a quote for cyber liability insurance from your insurance agent.
In addition to cyber liability insurance, bed and breakfast owners should also take steps to protect their business from cyber attacks, such as:
- Installing and maintaining a firewall.
- Using strong passwords and changing them regularly.
- Educating employees about cybersecurity risks.
- Backing up data regularly.
- Having a cybersecurity incident response plan in place.
By taking these steps, bed and breakfast owners can help to reduce their risk of a cyber attack and protect their business from financial losses.
Liquor liability insurance
Liquor liability insurance protects bed and breakfast owners from financial liability in the event that a guest is injured or causes damage to property as a result of alcohol consumption on the premises. This coverage is especially important for bed and breakfast owners who serve alcohol to their guests.
- Coverage for bodily injury:
This coverage pays for medical expenses and other damages if a guest is injured as a result of alcohol consumption on the premises.
- Coverage for property damage:
This coverage pays for damages to property caused by a guest who is intoxicated.
- Coverage for legal defense:
This coverage pays for the cost of defending against a lawsuit that is filed against the bed and breakfast owner as a result of a liquor-related incident.
- Coverage for lost income:
This coverage reimburses the bed and breakfast owner for lost income if the business is forced to close temporarily due to a liquor-related incident.
The cost of liquor liability insurance varies depending on the size of the bed and breakfast, the number of guests served, and the amount of alcohol sold. You can get a quote for liquor liability insurance from your insurance agent.
Innkeeper’s liability insurance
Innkeeper’s liability insurance protects bed and breakfast owners from financial liability in the event that a guest’s belongings are lost, stolen, or damaged while on the premises. This coverage is especially important for bed and breakfast owners who provide overnight accommodations to their guests.
- Coverage for lost or stolen property:
This coverage pays for the replacement cost of a guest’s belongings that are lost or stolen while on the premises.
- Coverage for damaged property:
This coverage pays for the cost of repairing or replacing a guest’s belongings that are damaged while on the premises.
- Coverage for legal defense:
This coverage pays for the cost of defending against a lawsuit that is filed against the bed and breakfast owner as a result of a guest’s property being lost, stolen, or damaged.
- Coverage for lost income:
This coverage reimburses the bed and breakfast owner for lost income if the business is forced to close temporarily due to a guest’s property being lost, stolen, or damaged.
The cost of innkeeper’s liability insurance varies depending on the size of the bed and breakfast, the number of guests served, and the value of the guests’ belongings. You can get a quote for innkeeper’s liability insurance from your insurance agent.
FAQ
Here are some frequently asked questions about insurance for bed and breakfast owners:
Question 1: What types of insurance do bed and breakfast owners need?
Answer: The most common types of insurance for bed and breakfast owners include property insurance, liability insurance, business interruption insurance, workers’ compensation insurance, commercial auto insurance, flood insurance, equipment breakdown insurance, cyber liability insurance, liquor liability insurance, and innkeeper’s liability insurance.
Question 2: How much insurance do I need?
Answer: The amount of insurance you need will depend on the size of your bed and breakfast, the number of guests you serve, and the value of your property and belongings. You should talk to your insurance agent to get a quote for the right amount of coverage.
Question 3: How much does bed and breakfast insurance cost?
Answer: The cost of bed and breakfast insurance varies depending on the type of coverage you need, the amount of coverage you purchase, and the insurance company you choose. You should get quotes from several different insurance companies to find the best rate.
Question 4: Where can I get bed and breakfast insurance?
Answer: You can get bed and breakfast insurance from a variety of sources, including insurance agents, online insurance companies, and direct writers. You should compare quotes from several different sources to find the best deal.
Question 5: What are some tips for choosing the right bed and breakfast insurance policy?
Answer: When choosing a bed and breakfast insurance policy, you should consider the following factors: the coverage you need, the amount of coverage you need, the cost of the policy, and the reputation of the insurance company. You should also read the policy carefully before you purchase it to make sure you understand what is covered.
Question 6: What are some common mistakes that bed and breakfast owners make when purchasing insurance?
Answer: Some common mistakes that bed and breakfast owners make when purchasing insurance include: not getting enough coverage, not reading the policy carefully, and not shopping around for the best rate. You should avoid these mistakes to make sure you have the right insurance coverage at the best price.
Closing Paragraph: By following these tips, you can choose the right insurance policy for your bed and breakfast and protect your business from financial losses.
In addition to purchasing insurance, there are a number of other things you can do to protect your bed and breakfast from risks. These include:
Tips
Here are a few tips for bed and breakfast owners to protect their business:
Tip 1: Get the right insurance coverage.
The first step to protecting your bed and breakfast business is to get the right insurance coverage. This includes property insurance, liability insurance, business interruption insurance, and workers’ compensation insurance. You should also consider purchasing additional coverage, such as flood insurance, equipment breakdown insurance, cyber liability insurance, liquor liability insurance, and innkeeper’s liability insurance.
Tip 2: Keep your property well-maintained.
One of the best ways to prevent accidents and injuries is to keep your property well-maintained. This includes regularly inspecting your property for hazards, such as loose stairs, slippery floors, and faulty wiring. You should also make sure your property is well-lit and that there are no tripping hazards.
Tip 3: Train your employees properly.
Your employees play a key role in the safety and security of your bed and breakfast. Make sure you train your employees properly on how to handle emergencies, such as fires, floods, and medical emergencies. You should also train your employees on how to provide excellent customer service and how to handle difficult guests.
Tip 4: Have a safety plan in place.
In the event of an emergency, it is important to have a safety plan in place. This plan should include evacuation procedures, contact information for emergency services, and a list of emergency supplies. You should also practice your safety plan with your employees and guests.
Closing Paragraph: By following these tips, you can help to protect your bed and breakfast business from risks and ensure the safety of your guests and employees.
By following these tips and getting the right insurance coverage, you can protect your bed and breakfast business from financial losses and ensure the safety of your guests and employees.
Conclusion
Summary of Main Points:
- Bed and breakfast owners need a variety of insurance policies to protect their business from financial losses.
- The most common types of insurance for bed and breakfast owners include property insurance, liability insurance, business interruption insurance, workers’ compensation insurance, commercial auto insurance, flood insurance, equipment breakdown insurance, cyber liability insurance, liquor liability insurance, and innkeeper’s liability insurance.
- The amount of insurance you need will depend on the size of your bed and breakfast, the number of guests you serve, and the value of your property and belongings.
- You should get quotes from several different insurance companies to find the best rate.
- When choosing an insurance policy, you should consider the following factors: the coverage you need, the amount of coverage you need, the cost of the policy, and the reputation of the insurance company.
- In addition to purchasing insurance, there are a number of other things you can do to protect your bed and breakfast from risks, such as keeping your property well-maintained, training your employees properly, and having a safety plan in place.
Closing Message:
By following these tips and getting the right insurance coverage, you can protect your bed and breakfast business from financial losses and ensure the safety of your guests and employees. Peace of mind is priceless, and having the right insurance coverage can give you that peace of mind knowing that your business is protected.