Special insurance programs are available to those who provide lodging. The services offered by the facility dictate the kinds of insurance they will need. As a general rule, the biggest exposure to loss is the injury of customers. Since there is a risk of a large number of people being severely injured (fire in rooms), very high limits of insurance are recommended. The primary liability coverage is found in the commercial liability insurance policy. If the facility serves food and or beverage, the commercial liability insurance policy also provides coverage for premises and product losses (we have seen programs offered without this important coverage). If alcoholic beverages are sold, a separate Liquor Legal Liability policy is needed to cover losses that stem from on premises and off premises claims. When facilities serve alcohol, they sometimes employ security personnel. This can create another exposure that can be difficult to insure. This exposure arises when someone is injured while the security personnel must physically remove someone from the premises for the safety for others. This can be a difficult exposure to insure.
High limits of liability insurance are available under an umbrella liability policy. A liability that is unique to Hotel and Motel operations is holding valuables for quests. The form of insurance that is offered to cover this exposure is called inn keepers legal liability insurance. It specifically covers the property of others that has been entrusted to you. It does not cover loss that stems from employees stealing guests property. This is covered by an employee dishonesty bond or an employee dishonesty policy.