What is Resort Hotels/Leisure and Recreation Activities Insurance?
Resort Hotels/Leisure and Recreation Activities Insurance is a specialized type of business coverage designed to protect hospitality businesses that offer overnight accommodations, entertainment, and recreational services. This includes resorts, hotels, lodges, amusement centers, spas, golf resorts, water parks, and other similar businesses. These establishments face unique risks due to the nature of their operations and clientele, making tailored insurance coverage essential.
Who Needs It
Any business operating in the hospitality or leisure industry should consider this type of insurance. This includes:
- Resort and hotel owners
- Operators of amusement or water parks
- Spas and wellness retreats
- Golf courses and country clubs
- Adventure tourism providers (e.g., zip lining, rock climbing)
- Recreational facilities like arcades or indoor trampoline parks
What It Typically Covers
Coverage is designed to protect against a variety of operational risks, such as:
- General liability: Protects against third-party bodily injury or property damage claims.
- Property insurance: Covers damage to buildings, equipment, and furnishings from covered events like fires or storms.
- Business interruption: Helps recover lost income if operations are disrupted due to a covered event.
- Liquor liability: For establishments that serve alcohol, this protects against alcohol-related incidents.
- Professional liability: Covers claims related to services provided, such as spa treatments or guided tours.
- Workers' compensation: Required in most states for employee injury coverage.
Common Exclusions and Limitations
Like all insurance policies, this coverage comes with exclusions. Common ones include:
- Intentional acts or criminal activity
- Wear and tear or lack of maintenance
- Flood and earthquake damage (unless specifically added)
- Injuries from high-risk activities not disclosed or covered
Be sure to review policy terms closely and ask your agent about adding endorsements for excluded risks that apply to your business.
Factors That Influence Cost
Several factors impact your insurance premium, including:
- Type and size of the facility
- Number of guests or visitors annually
- Types of recreational activities offered
- Claims history
- Location and local risk exposures (e.g., weather, crime rate)
- Safety protocols and staff training in place
Proof of Insurance and Compliance
Many states and local jurisdictions require proof of insurance to obtain or renew operating permits. Additionally, business partners, lenders, or vendors may request a certificate of insurance (COI) to confirm your coverage. Always keep your documentation up to date and readily available.
How to Get a Quote
Getting covered starts with requesting a custom quote. Provide information about your business operations, number of employees, and services offered. Our team can help tailor a policy that fits your unique needs. Get a quote today.
Frequently Asked Questions
What types of businesses qualify for Resort Hotels/Leisure insurance?
Businesses such as resorts, hotels, water parks, spas, golf courses, and other recreational facilities can qualify for this specialized insurance.
Is workers' compensation included in this type of insurance?
Workers' compensation is typically available as an add-on or separate policy and is required in most states for businesses with employees.
Does this coverage include natural disasters?
Standard policies may exclude floods and earthquakes, but coverage can often be added through endorsements or separate policies.
Can I cover liability for outdoor activities like horseback riding or zip lining?
Yes, but these activities must be disclosed and may require specialized liability endorsements due to the elevated risk.
How do I show proof of insurance to a vendor or local authority?
You can request a certificate of insurance (COI) from your provider, which outlines your coverage types and limits.
Still have questions? Talk to a local insurance expert.