Hotels and motels carry a complex mix of property, liability, and crime exposures driven by constant guest turnover, extensive amenities, and significant cash handling. A pool, a bar, a banquet room, and a 24-hour front desk each create distinct coverage needs — and inadequate coverage in any one area can leave the property owner exposed to losses that could have been insured. Understanding the full scope of hotel operations is the starting point for every hospitality property submission.
Commercial General LiabilityThe primary liability coverage for hotel and motel operations. Covers bodily injury and property damage to guests and visitors — slip-and-fall injuries in common areas, swimming pool accidents, fitness center injuries, injuries in parking lots, and property damage to guest belongings. Hotels see high guest traffic, which creates elevated GL exposure compared to most commercial properties.
Commercial PropertyCovers the hotel building, guest room furnishings, common area furniture, kitchen equipment, pool equipment, fitness equipment, laundry equipment, signage, and business personal property. Hospitality property is more exposed to guest damage and wear than comparable commercial buildings. Adequate replacement cost coverage with business interruption is essential.
Business InterruptionIf a covered property loss forces the hotel to close or limit operations — a fire, a water main break, or a major plumbing failure — business interruption replaces the lost room revenue during the restoration period. Hotels have high fixed costs (mortgage, staff, utilities) that continue even when rooms cannot be rented. Extended business income coverage is important for major losses with long restoration timelines.
Crime / Employee DishonestyHotels face employee theft from multiple angles — front desk staff handling cash, housekeeping staff with access to occupied guest rooms, food and beverage staff, and accounting personnel handling reservations and payments. Crime coverage with employee dishonesty, computer fraud, and robbery protection is essential for hotel operations.
Liquor LiabilityHotels with bars, restaurants, or banquet facilities that serve alcohol need liquor liability coverage. A hotel bar that over-serves a guest who then injures someone in the parking lot or drives drunk creates dram shop liability that standard GL excludes. Liquor liability is not optional for any hospitality property serving alcohol.
Workers' CompensationHotel employees face diverse WC exposures — housekeeping staff with musculoskeletal injuries from room cleaning and linen changing, kitchen staff with burns and cuts, maintenance staff with equipment hazards, front desk staff with ergonomic injuries, and security staff with assault risk. WC is mandatory in virtually every state.
Commercial UmbrellaA serious guest injury — a pool drowning, a fire in a guest room, a parking lot assault — can produce seven-figure claims. Franchise requirements from major hotel brands typically require umbrella limits of $2M–$5M. Any hotel with over 50 rooms should carry umbrella coverage.
Cyber LiabilityHotels collect significant guest data — credit card numbers, home addresses, passport information for international guests, and booking history. Major hotel chains have experienced large data breaches. Smaller independent hotels and franchise properties face the same exposure at a smaller scale. Cyber coverage is increasingly standard for hospitality operations.
ACORD 125 — Commercial Insurance ApplicationPrimary submission document for hotel accounts. Capture number of rooms, property class (franchise brand or independent), amenities (pool, restaurant, bar, fitness center, conference rooms), and average occupancy rate. Prior loss history covering all lines for 5 years is required.
ACORD 126 — Commercial General Liability SectionRequired for GL. Describe all hotel operations — lodging, food and beverage, banquet/event space, pool, fitness center, parking, valet. Each amenity is a separate underwriting consideration. Annual room revenue and food/beverage revenue must be separately stated.
ACORD 140 — Property SectionRequired for commercial property. Hotels require careful valuation of building and business personal property. Guest room furnishings are frequently undervalued — a 100-room hotel with $3,000/room in furniture and fixtures has $300,000 in furniture alone, before accounting for common areas and equipment.
ACORD 130 — Workers Compensation ApplicationRequired for WC. Hotel employee classifications include front desk (8810), housekeeping (9079 — hotel), food service (9082), maintenance (5183 or similar), and security guards. Each classification carries different rates and must be separately identified.
→How many rooms does the hotel/motel have?
→Is the property a franchise brand (Marriott, Hilton, IHG, Choice, etc.) or independent?
→What is the average annual occupancy rate?
→What amenities does the property offer — pool, hot tub, fitness center, restaurant, bar, banquet space, conference rooms?
→Is there a pool? Is it indoor, outdoor, or both? What are the lifeguard policies?
→Does the hotel have a full-service restaurant or food and beverage operation?
→Does the property serve alcohol? What is the annual bar/restaurant revenue?
→Does the hotel rent banquet or event space to outside groups?
→What is the total building replacement cost value?
→What is the total business personal property value — guest room furnishings, common area furniture, equipment?
→What is the annual room revenue?
→How many employees in each department — front desk, housekeeping, food service, maintenance, security?
→Is there valet parking? Is it operated in-house or by a third-party contractor?
→Has the hotel had any significant property losses in the last 5 years — fire, water damage, storm?
→Has the hotel had any significant liability claims — guest injuries, assault incidents, drowning incidents?
→What security measures are in place — surveillance cameras, security personnel, key card access?
→Is the hotel in a flood zone?
→What is the year of construction and any major renovation dates?