Hotel Insurance
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Safeguarding Your Hotel with Gerrards Insurance Brokers
Hotel insurance NZ
Hotel insurance is a specific type of business insurance tailored to protect hotel owners and their property. It encompasses a range of coverage options to protect against risks and unforeseen events. These can include natural disasters, theft, guest injuries, property damage, and more. It ensures that when unexpected situations occur, hoteliers have the financial backing they need to recover.
Why is hotel insurance important?
Every day, hotels encounter risks that can translate to significant financial blows: natural disasters, guest injuries, or even legal disputes. Hotel insurance provides a crucial buffer against these events, allowing you to operate with the assurance that such challenges won’t derail your business.
In New Zealand, the average cost of hotel insurance typically ranges between NZ$200 – NZ$500 per month.
It’s crucial to have hotel coverage if your business:
- Hosts numerous guests annually
- Employs several staff members
- Contains valuable property or assets
- Faces high liability risks
What covers are typically included in hotel insurance?
Building Insurance
Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your hotel gets damaged. Building insurance can also include hotel contents or fit outs.
Best For
- Accidents
- Natural disasters
- Fires
Business Interruption
When hotel owners face situations where they can’t make money from their hotel business, business interruption insurance offers them a safety net to cover the lost income or rents.
Best For
- Natural disasters
- Fires
- Floods
Public Liability
This policy covers common hotel business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Statutory Liability
This cover is a type of protection that helps hotels cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
Employers Liability
This insurance helps hotel businesses from financial losses if an employee suffers injuries or illnesses at work.
Best For
- Workplace injuries
- Legal expenses
- Compensation payments
Management Liability
Management liability insurance in NZ shields hotel owners, directors or management from legal and financial risks due to their managerial responsibilities.
Best For
- Directors liability
- Employment disputes
- Legal defence
How much does hotel insurance cost?
The cost of hotel insurance varies widely depending on several factors:
- Location: Hotels in areas prone to natural disasters may face higher premiums.
- Size of the Hotel: Larger properties with more rooms generally require more coverage.
- Amenities Offered: Features like pools, spas, or restaurants can increase insurance costs.
- Claims History: A history of frequent claims may result in higher premiums.
- Safety Measures: Implementing security systems and safety protocols can help reduce costs.
- Coverage Limits and Deductibles: Higher limits increase premiums, while higher deductibles can lower them.
- Age and Condition of the Property: Older buildings or those in poor condition may be more expensive to insure.
At Gerrards Insurance Brokers, we work with you to find the right balance of coverage and cost for your specific situation.
Hotel insurance in NZ typically costs between $200 to $500 per month
Who needs hotel insurance?
Every hotel, regardless of its size or stature, stands vulnerable to a plethora of risks. Whether you manage a historic inn, a bustling city hotel, a serene beachside resort, or a cozy mountain lodge, the potential for unforeseen incidents is ever-present. Thus, every hotelier, focused on safeguarding their property, guests, and reputation, should prioritize hotel insurance as a fundamental aspect of their business strategy.
No, hotel insurance is not mandatory by law in New Zealand. However, it is highly advisable. Without it, hoteliers expose themselves to significant financial risk.
Typically, a comprehensive hotel insurance policy will cover guest belongings in case of your negligence However, there might be certain limits or conditions, so always check the specifics of your policy.
Yes, it’s possible to cover multiple hotel properties under a single policy. This can be done through:
- Blanket Coverage: This approach sets a single limit of insurance that applies to all covered properties. It’s often more cost-effective and provides flexibility in how limits are applied.
- Scheduled Coverage: Each property is listed separately on the policy with its own limit of insurance. This can be beneficial if properties vary significantly in value or risk.
- Master Policy with Individual Locations: A combination approach where there’s an overall policy with specific endorsements or coverage details for each location.
The best approach depends on your specific situation. Our brokers at Gerrards can help you determine the most appropriate and cost-effective way to insure multiple properties.
There are several strategies to help lower your insurance premiums:
- Implement Strong Security Measures: Install security cameras, access control systems, and fire prevention equipment.
- Maintain a Good Claims History: Promptly address potential hazards and implement risk management strategies to prevent claims.
- Bundle Policies: Combining multiple coverages with one insurer often results in discounts.
- Increase Deductibles: Opting for higher deductibles can lower premium costs, but ensure you can afford the out-of-pocket expense if a claim occurs.
- Regular Staff Training: Conduct regular safety and security training for employees to reduce the likelihood of incidents.
- Maintain and Upgrade Facilities: Keep your property in good condition and upgrade outdated systems to reduce risk.
- Work with an Experienced Broker: At Gerrards, we can help you identify the most cost-effective coverage options and negotiate with insurers on your behalf.
How do I get proof of hotel insurance
You can usually get proof of insurance same day when you purchase insurance through Gerrards.
Acquiring a hotel insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.
To obtain insurance coverage promptly, contact one of our hotel insurance brokers. We may require you to provide some fundamental details about your business, such as:
- The name of your business
- The total number of employees
- Predicted annual income
- Years of experience in the industry
What does hotel insurance not cover?
Intentional Damage
If damage to the property or injury is caused intentionally, it is typically not covered. Insurance is meant for accidents and unforeseen incidents. If a hotelier or employee intentionally causes harm or damage, this goes against the policy’s purpose.
Normal Wear and Tear
Over time, things break down, and this is not covered. Insurance covers unexpected damages, not the natural aging of property. Regular maintenance and updates are the responsibility of the hotelier.
War and Terrorism
Events related to war, terrorism, or civil unrest are not covered. These events are generally considered too large and unpredictable for standard policies. Hoteliers might need specialized insurance if they are in high-risk areas.
Other common questions about hotel insurance
If your hotel offers additional amenities like spas or fitness centers, this isn’t a problem and can be included with your insurance. The best course of action is to talk to one of our hotel insurance brokers.
Improving safety measures, installing security systems, and regular maintenance can potentially reduce your premium. Additionally, bundle insurance policies or have a no-claim history can also lead to discounts.
Yes, part of hotel insurance often includes coverage for employee injuries. The particular policy is called employers liability.
Absolutely! Insurance brokers, especially specialists like Gerrards, can help customize your insurance package by helping you choose covers that align with your risk appetite and business.
