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Motel insurance NZ
Motel insurance is a specific type of business insurance tailored to meet the unique needs and challenges faced by motel operators. It provides coverage for property damage, guest liabilities, staff-related incidents, and other potential risks that motels might encounter.
Why is motel insurance important?
As a motel owner, you’ve poured your heart and soul into creating a welcoming haven for travelers. Your small business isn’t just a source of income – it’s your passion, your legacy, and often, your home. But in the blink of an eye, unforeseen events can threaten everything you’ve built. That’s where motel insurance comes in, providing the protection and peace of mind you need to focus on what matters most: your guests and your business.
In New Zealand, the average cost of motel insurance typically ranges between NZ$200 – NZ$500 per month.
It’s crucial to have motel 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 motel insurance?
Building Insurance
Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your motel gets damaged. Building insurance can also include contents or fit outs.
Best For
- Accidents
- Natural disasters
- Fires
Business Interruption
When motel owners face situations where they can’t make money from their motel 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 motel 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 motels 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 motel 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 motel 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 motel insurance cost?
Motel insurance premiums are calculated on several different factors including:
- Types of cover
- Turnover
- Location
- Claims History
Motel insurance in NZ typically costs between $200 to $500 per month
Protect Your Accommodation Business with Tailored Insurance Coverage
At Gerrards, we understand that no two motels are alike. Whether you’re running a cozy roadside inn or a boutique motel experience, your insurance needs are as unique as your business. Our tailored motel insurance solutions are designed to address the specific challenges faced by small accommodation providers in New Zealand.
Property Coverage: Safeguarding Your Motel’s Assets
Your motel is more than just a building – it’s the foundation of your business. Our comprehensive property coverage protects:
- Buildings and structures
- Furniture, fixtures, and equipment
- Outdoor facilities like pools and parking areas
- Landscaping and signage
With Gerrards, you can rest easy knowing that your investment is protected against risks like fire, theft, vandalism, and natural disasters.
Who needs motel Insurance?
Any individual or entity that operates a motel in New Zealand should seriously consider obtaining motel insurance. Whether you’re a small motel owner or run a larger chain of motels, insurance is pivotal in shielding your business from potential financial ruin due to unforeseen circumstances.
Yes, most motel insurance policies include public liability coverage, which protects against claims resulting from injuries or accidents that occur on the motel premises. This can include slip and fall incidents, injuries in the pool area, or even food-related illnesses.
Typically, a guests property is there own responsibility. However if it was found that it was your negligence that led to the theft then you could be found liable. In this case motel insurance can cover this.
Yes, additional liability coverage is often recommended for these amenities. Our team can help you assess your risks and ensure you have appropriate coverage.
We can tailor your policy to include coverage for your personal living quarters within the motel property, ensuring seamless protection for both your business and your home.
How do I get proof of motel insurance
You can usually get proof of insurance same day when you purchase insurance through Gerrards.
Acquiring a motel 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 motel 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 motel insurance not cover?
Intentional Damage
If property damage arises due to intentional or malicious acts by the motel owner or staff, the insurance typically doesn’t cover it.
Natural Wear and Tear
Over time, property wears down. Things like faded paint or old plumbing aren’t covered, as they’re considered regular maintenance issues.
Acts of War or Terrorism
Most standard policies won’t cover damage or liabilities arising from acts of war or terror. If your motel is in a high-risk area, you might need to purchase additional coverage.
Other common questions about motel insurance
Some comprehensive motel insurance policies include coverage for employee dishonesty or theft. This cover is called fidelity or crime and is most commonly found as part of a management liability package.
Standard motel insurance policies do cover natural disasters like floods or earthquakes. However, it pays to check your policy for any exclusions or increased areas, especially if you are in a region prone to these events.
If you make minor improvements during the year, these can be covered by your capital additions & property in the course of construction limits. However if the works are major then you will need to purchase contract works to cover the works and then update the building policy once this is finished.
Most motel insurance policies provide coverage for damages caused by guests. However, many motels also secure a deposit from guests to cover minor damages. It’s essential to understand the limits and deductibles of your policy.
