Whether you have been running your own bed and breakfast for years or are looking to begin your journey in the hospitality industry, there are some insurance coverages that any B & B should consider. In this article, you can find information about some of the common coverages bed and breakfasts may want, among other insurance considerations.

Insurance Quotes for Bed & Breakfasts

If you are looking to get an insurance quote for your bed and breakfast, beginning the process can be as simple as filling out this form. If you prefer to call one of our offices to start the quoting process, you can find a list of all of our offices here. From there, a member of our team will connect with you to get more details on the size of your business and the types of insurance plans you are interested in.

Commercial Coverages for Bed & Breakfasts

Just as with any business, there are a variety of risks and liabilities that must be taken into consideration when deciding what insurance coverages should be selected. Some types of insurance you may want to consider include, but are not limited to, the following.

General Liability Insurance

Bed and breakfasts combine both the hospitalities of a restaurant and hotel, making the B & B industry even more of a complex business to run. General liability insurance helps protect your business against financial liabilities that result from certain types of accidents for which you are legally liable. For example, general liability policies apply to claims regarding bodily injury or property damage that your business negligently causes to third parties.

Product Recall and Product Liability

One significant risk for any business that provides food is product contamination or spoilage. Some bed and breakfasts are able to grow their brand to where they not only serve their product at their location, but they may also sell products in stores. With product recall coverage, you can help reduce the costs of removing your product off customers’ shelves due to an unforeseen contamination or packaging error. Some of the costs that recall insurance can help reduce the costs of are:

• Distribution costs
• Storage costs
• Disposal costs
• Replacement costs

Product liability coverage may also be available to help cover costs associated with customers who are injured or become ill as a result of ingesting a defective product.

Insurance for Your B & B Employees

Regardless of where you are operating your bed and breakfast, chances are you aren’t running it by yourself. In the majority of states, businesses are legally required to have workers’ compensation for their employees, and having workers’ comp can help protect those employees. This coverage can help cover medical bills for employees who are injured or become ill because of work related events.

Commercial Umbrella Insurance  

Commercial umbrella insurance, sometimes also called commercial excess liability insurance, is a liability coverage that sits over (i.e., in excess of) your primary liability policies, such as your commercial general liability policy.  If your primary liability policy limits are exhausted due to a covered claim, then a commercial umbrella insurance policy can help to provide an additional layer of liability coverage (up to the limits of the umbrella policy). Liquor Liability for Bed & Breakfasts

If your bed and breakfast serves alcohol, a liquor liability policy is something you should consider. Liquor liability coverage can help provide your business with coverage for claims of bodily injury or property damage for which it may become liable as a result of serving alcohol to an intoxicated customer or guest. This type of policy may cover settlements, legal costs, and medical expenses.

Business Interruption Insurance

If your bed and breakfast were to have a significant accident, such as a natural disaster or fire, it could take weeks or even months to rebuild your B & B. Business interruption insurance can help replace some of your lost income due to a covered peril.

What Could Insurance Cost?

Each business is as unique as the industry it’s in. Here at Cross Insurance, we will work with you to help you identify what types of policies you may want to consider. Factors that can influence the cost of insurance for your business may include, but are not limited to:

• What types and amounts of coverage you select.
• The type of services that you provide.
• The location where your business is located.
• The amount of deductible that you select.
• How many employees you have.
• Do you have previous claims?
• What is your business’ income?

Contact Your Local Office

Connect with a local insurance agent to discuss the unique features of your bed and breakfast and to request a quote today.

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.