The Risk

The hotel and hospitality industry is increasingly being exposed to a number of new risks which fall outside the ambit of the traditional risk categories such as property risks, reputation risks/brand management and political risks. Some of these include risks related to mixed-use construction, medical spas (spas within hotels that offer botox, laser resurfacing, etc.) and cyber risks dealing with credit card data and personal information housed on hotel keycards. Product liability risks stemming from the sales of branded products such as bedding and spa items are also considered to be growing exposures. More recently, Hotels have been targets of terrorist attacks as well.

The Solution

Hotelier’s Package Insurance is a comprehensive insurance policy for hotels or restaurants. The policy broadly covers loss or damage due to fire, earthquake, flood, riot etc. It also covers damage by Burglary, Housebreaking (Theft following upon actual, forcible and violent entry of and/or exit from the premises) covers loss of money in transit or in safe, loss of guest property and breakage of plate glass. It also provides cover for legal liability towards employees in respect of accidental death or bodily injury while working. In addition, it covers you for any liability towards third party in respect of accidental death or bodily injury including liability arising out of food & beverages supplied by hotel / restaurant.

The Cover

With Hotelier’s Package Insurance, you can pick and choose the covers you require and amount up to which you want to cover your various risks. In short, you can choose the ingredients of your Hotel Insurance recipe to suit your taste. The covers include:

• Standard Fire & Special Perils – Building & Contents
• Burglary
• Money in Safe
• Money in Transit
• Glass Breakage (Plain plate glass)
• Workmen’s Compensation
• Public Liability
• Loss of Guest Property (admitted)

Major Exclusions

• Loss and/or damage arising out of War, Riot, Strike, Civil Commotion, Terrorism
• Burglary or theft by employee or staff of the hotel / restaurant
• Theft without actual, forcible and violent entry or exit
• Loss if the dwelling is unoccupied for more than 30 days.
• Glass breakage while premises is under construction or while the glass is being removed for
• Embossed, silvered, lettered, ornamental, curved or any glass other than plate glass.
• Any loss of financial such as goodwill, loss of market share.
• Fines, penalties, punitive or exemplary damages or any other damages resulting from the compounding of compensatory damages
• Loss or damage to jewellery, gold ornaments, precious stones and silver articles of any description
• Loss or damage to the illegal property
• Loss of Money which cannot be verified or accounted for through proper records on shortage
• Second or subsequent transit in any one day for money in transit

Important Extension

• Earthquake cover
• Terrorism damage extension for fire & special peril
• Additional expenses of rent for alternative accommodation
• Liability arising out of supply of Food & beverages
• Liability arising out of Sports facility
• Liability arising out of Swimming pool