Insurance for Hotels and Motels

What underwriters look at

Hotels and motels combine several businesses under one roof: lodging, food service, event space, sometimes a pool or fitness area, and often a bar. Each of these functions carries its own risk, which is why lodging properties typically need a more comprehensive insurance program than a single storefront business would require.

Guest safety is central to the exposure. Slip-and-fall incidents near pools, injuries on stairs or in parking lots, and theft of guest property are common sources of claims. Because guests are staying overnight and often unfamiliar with the property, hotels also carry innkeeper liability considerations that go beyond typical premises liability for a retail or office space.

Property values at hotels can be substantial, covering the building itself, furniture and fixtures across many rooms, and often commercial laundry or kitchen equipment. Business interruption coverage is also an important conversation for lodging properties, since a fire or major system failure that closes rooms can create significant lost income while repairs are underway.

Franchise agreements add a layer of insurance obligation that independent lodging properties don't face, since brand agreements typically specify minimum liability limits, require the franchisor to be named as an additional insured, and sometimes dictate specific coverage forms the property must carry to remain in the system. Underwriters evaluating a hotel or motel also weigh amenities heavily, since a property with a pool, bar, or fitness center is rated differently than a limited-service property offering only rooms and a continental breakfast. Seasonality matters too, particularly for properties in resort or vacation markets where occupancy swings sharply between peak and off-season months, making business income projections an important part of setting property limits. At renewal, documentation like pool inspection records, ADA compliance updates, and staff training logs for front desk and housekeeping can support smoother underwriting and help demonstrate that guest-safety practices are being actively managed rather than left to chance. Properties undergoing renovation should also notify their carrier before work begins, since construction activity, contractor liability, and vacant or partially occupied rooms can change the risk profile mid-term in ways a standard policy doesn't automatically anticipate.