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Motel Insurance

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Motel insurance

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? 

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.

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

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. 

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.

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