Hotel and Motel Insurance: Liability Coverage for Owners
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 13
- 2 min read
Hotels and motels are high-traffic environments where guests, employees, and vendors interact daily. With so much activity, the potential for accidents, injuries, and property damage is significant. Liability insurance is designed to protect owners from the financial consequences of these incidents.
Without proper coverage, a single lawsuit could result in thousands—or even millions—of dollars in legal fees, settlements, and reputational damage. That’s why commercial liability insurance is not just a recommendation—it’s a necessity for hospitality businesses.
What Does Hotel and Motel Liability Insurance Cover?
Liability insurance for hotels and motels typically includes:
Cyber Liability Insurance
Protects against data breaches and cyberattacks, which are increasingly common in the hospitality industry.
Covers bodily injury and property damage claims from third parties. For example, if a guest slips on a wet floor in the lobby, this policy can cover medical expenses and legal costs.
Liquor Liability Insurance
If your property serves alcohol, this coverage protects against claims resulting from intoxicated guests causing harm to themselves or others.
Employment Practices Liability Insurance (EPLI)
Covers claims related to wrongful termination, discrimination, or harassment by employees.
Umbrella Liability Insurance
Provides additional coverage beyond the limits of your general liability policy, offering extra protection for large claims.
Common Liability Risks in the Hospitality Industry
Hotel and motel owners face a wide range of liability exposures, including:
Slip-and-Fall Accidents: These are among the most common claims and can occur in lobbies, bathrooms, or pool areas.
Foodborne Illnesses: If your property serves food, you could be liable for food poisoning or allergic reactions.
Negligent Security Claims: If a guest is assaulted or robbed on your property, you could be held responsible for inadequate security measures.
Employee Misconduct: Claims related to harassment, discrimination, or wrongful termination can be financially and reputationally damaging.
How Much Does Hotel Liability Insurance Cost?
The cost of liability insurance varies based on several factors:
Size and location of the property
Number of rooms and amenities (e.g., pools, gyms, restaurants)
Claims history
Type of coverage and policy limits
According to CBRE, hotel insurance costs have risen by nearly 20% in recent years, making it more important than ever to work with a knowledgeable insurance partner.
Final Thoughts
At Wexford Insurance, we understand the unique risks that hotel and motel owners face. Our team specializes in crafting customized insurance solutions that protect your property, your guests, and your bottom line. Whether you operate a boutique inn or a multi-location franchise, we’ll help you find the right liability coverage at a competitive rate.
Contact Wexford Insurance today to get a personalized quote and ensure your hospitality business is fully protected.
