Hotel and Motel Insurance in Nevada: Liability Coverage Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Running a hotel or motel in Nevada—whether in Las Vegas, Reno, or a quiet desert town—means managing a high-traffic business with constant guest interaction. With that comes liability risks that can lead to costly lawsuits and financial losses. That’s why having the right insurance coverage is essential.
Here’s what hotel and motel owners in Nevada need to know about liability and commercial property insurance coverage.
Why Liability Insurance Is Critical in Nevada
Nevada’s hospitality sector is exposed to a wide range of risks:
Slip and fall accidents in lobbies or pool areas
Property damage caused by guests or staff
Negligent security claims due to theft or assault
Liquor liability for hotels with bars or restaurants
Guest property loss or damage claims
Under Nevada law, hotels have a legal duty to maintain safe premises. Failure to do so can result in lawsuits and significant payouts.
Essential Liability Coverages for Hotels and Motels
Covers bodily injury and property damage to third parties. This is the foundation of any hotel insurance policy and protects against incidents like guest injuries or damage to vehicles in your parking lot.
2. Innkeepers Liability
Protects against claims related to lost or stolen guest property. Nevada hotels are legally responsible for safeguarding guest belongings.
Required for hotels and motels that serve alcohol. Covers claims arising from alcohol-related incidents, such as fights or accidents.
4. Umbrella Liability Insurance
Provides additional coverage above your primary liability limits. Ideal for larger properties or those hosting events and conferences.
Covers claims related to wrongful termination, discrimination, or harassment by hotel staff.
Average Insurance Costs in Nevada
Hotel and motel liability insurance in Nevada typically starts around $67/month, with full coverage packages averaging $725–$735/month depending on property size, amenities, and location.
Guest capacity and occupancy rates
Presence of pools, gyms, or restaurants
Claims history and risk profile
Location (e.g., Las Vegas vs. rural Nevada)
Final Thoughts
Liability insurance isn’t optional—it’s a necessity for hotel and motel owners in Nevada. From guest injuries to property damage, the right coverage protects your business, reputation, and bottom line.
Wexford Insurance offers tailored commercial property insurance for hotels and motels across Nevada. Our policies include general liability, innkeepers' liability, liquor liability, and more designed to meet the unique needs of hospitality businesses. Connect today!
FAQs
1. Is liability insurance mandatory for hotels in Nevada?
While not legally required, most lenders and franchise agreements mandate liability coverage. It’s essential for financial protection.
2. What’s the difference between general liability and innkeepers' liability?
General liability covers bodily injury and property damage; innkeepers liability covers guest property loss or theft.
3. Can I bundle multiple hotel properties under one policy?
Yes. Wexford Insurance offers umbrella policies for multi-location hospitality businesses.
