Hotel Insurance from £25.00/month

What does hotel insurance cover?

Hotel insurance is a specialist combined policy covering the building, contents and operating risks of a trading hotel. A properly placed policy bundles buildings and contents, business interruption with an indemnity period appropriate to seasonal trade, public and products (food) liability, statutory employers' liability, liquor liability and loss-of-licence cover, guests' personal property under the Hotel Proprietors Act 1956, and any spa, pool or leisure exposure on site.

Buildings, contents and business interruption

Buildings cover is rated to full reinstatement, including listed-building features and bedroom refurbishment values. Contents covers FF&E, kitchen plant, linen, IT and front-of-house equipment. Business interruption protects lost room revenue, F&B trading income and additional cost of working — indemnity periods of 18–36 months are typical because rebuild, planning and FF&E re-fit take longer than the building works alone.

Public, products and employers' liability

Public liability (£5m–£10m) covers slip-trip claims in lobbies, bars and pool areas, and third-party property damage. Products / food liability covers foodborne illness from restaurant, bar, banqueting and room-service output — kept under one limit where possible. Employers' liability (£10m statutory) covers kitchen brigade, housekeeping, front-of-house and casual banqueting staff including agency cover under your direction.

Liquor liability and loss of licence

Liquor liability covers claims arising from service of alcohol — over-service, third-party injury caused by an intoxicated guest, or a regulatory claim under the Licensing Act 2003. Loss of licence covers the loss in trading value if the premises licence is revoked through no fault of the operator (e.g. a successful review brought by a neighbouring objector). For hotels with significant bar or banqueting income, both sections are essential and frequently missing from generic hospitality policies.

Guests' property and spa/pool risk

Under the Hotel Proprietors Act 1956, hotels have strict statutory liability for guests' property brought onto the premises (capped at £50 per article / £100 per guest where the statutory notice is displayed). The policy responds within and above those limits. Where the hotel operates a spa, pool, gym or treatment rooms, we extend the cover to treatment risk, pool-side liability and equipment breakdown on saunas, steam rooms and pool plant.

Common questions about hotel insurance

Is liquor liability included as standard?

On a properly placed hotel policy, yes — but it is frequently excluded or sub-limited on generic hospitality / shop policies. For any hotel with a wet bar, banqueting or wedding income, liquor liability and loss of licence should be explicit, not assumed.

How are seasonal hotels rated?

Premium is based on annual room revenue and F&B turnover, not bed-night count. Seasonal hotels should declare projected turnover honestly — under-declaration triggers average at claim. We agree extended unoccupied conditions for true off-season closures.

Does the policy cover guests' valuables?

Yes — within the Hotel Proprietors Act 1956 statutory limits where the notice is displayed, and above those limits where you accept items into the safe. Items left in cars in the car park are typically excluded unless specifically negotiated.

What about wedding and event income?

Banqueting, wedding and event income is included within the business interruption sum insured and additional cancellation cover can be added — important for hotels with significant forward-booked function revenue exposed to a single insured event.

For a hotel quote — independent, boutique, country-house or group — call 020 8908 2426, message WhatsApp 07954 331362, or request a callback.