What is Hotels (Large Property) Insurance?
Hotels (Large Property) Insurance is a specialized type of commercial property insurance designed to protect larger hospitality establishments. This coverage helps shield hotel owners from financial losses due to property damage, liability claims, business interruptions, and other risks unique to large properties in the hospitality industry.
Who Needs It
This insurance is essential for owners and operators of mid-size to large hotels, including resorts, convention center hotels, and multi-story lodging facilities. If your hotel has significant property value, high guest traffic, or additional amenities like restaurants, pools, or banquet halls, you likely need this type of coverage.
What It Typically Covers
Hotels (Large Property) Insurance usually includes:
- Property coverage – Protects buildings, furnishings, and equipment from perils like fire, theft, and storm damage.
- General liability – Covers third-party injuries or property damage occurring on the premises.
- Business interruption – Compensates for lost income during covered disruptions such as natural disasters.
- Equipment breakdown – Covers repair or replacement of essential systems like HVAC, elevators, or boilers.
- Crime coverage – Protects against losses from theft, fraud, or employee dishonesty.
Common Exclusions and Limitations
Policies may exclude certain types of damage or claims, such as:
- Flood or earthquake damage (may require separate coverage)
- Wear and tear or lack of maintenance
- Intentional acts or criminal behavior
- Data breaches or cyber liability (unless added as an endorsement)
It's important to review your policy to understand any specific exclusions or coverage limits.
Factors That Influence Cost
Several factors can affect the cost of Hotels (Large Property) Insurance:
- Size, location, and age of the hotel
- Construction type and fire safety features
- Annual revenue and occupancy rates
- Claims history
- Coverage limits and deductibles selected
Proof of Insurance & Compliance
Most states and local municipalities require hotels to carry certain types of insurance to operate legally. Lenders, business partners, or booking platforms may also request proof of coverage. A valid certificate of insurance (COI) can help demonstrate compliance.
How to Get a Quote
Getting a customized quote is the best way to find the right coverage for your hotel’s specific needs. Request a quote today to explore your options.
Frequently Asked Questions
What type of hotels qualify for large property insurance?
This typically includes full-service hotels, resorts, and multi-story properties with significant square footage or amenities.
Does large property insurance cover guest injuries?
Yes, general liability coverage within the policy typically covers third-party injuries such as slips or falls.
Is business interruption included automatically?
Not always. Business interruption is often an optional coverage or may have specific triggers, so it should be reviewed when selecting a policy.
Can I add cyber liability to a hotel insurance policy?
Yes, many insurers offer cyber liability as an add-on or endorsement to protect against data breaches and related risks.
How often should I review my hotel insurance policy?
It's recommended to review your policy at least once a year or after major renovations, expansions, or operational changes.
Still have questions? Talk to a local insurance expert.