Business insurance
Hotel Insurance
cover for the building, the rooms, the restaurant, the guests and the staff of a UK hotel
A package for a hotel: the building and contents, liability to guests and staff, guests’ belongings, and options such as lost bookings and loss of licence. Fire safety and the facilities you offer shape the terms.
- Hotels, guest houses and inns
- Guests, staff and the building together
- Owned, leased and managed
- FCA authorised and regulated
Quick answerHotel insurance is a package of cover for a UK hotel or guest house. It can bring together buildings or contents, public and products liability, employers’ liability for your staff, and cover for guests’ belongings, with options such as business interruption, loss of licence and money. Fire safety and what you offer guests shape the terms. Tell MyMoneyComparison.com about your hotel once, and specialist UK brokers can come back with quotes.
This page is about the business that runs a hotel. A pub where drink is the main trade is on our pub insurance page, and a single property let to holidaymakers is on holiday home insurance.
At a glance
Hotel Cover, in Brief
Six things that decide how hotel insurance behaves, before any of the detail.
- Guests and staff
- Public, products and employers’ liability
- Guests’ belongings
- A hotel can be liable for guests’ property
- Fire safety first
- Sleeping guests make fire a central risk
- The building
- Can be the largest sum insured on the schedule
- Lost bookings
- Business interruption after insured damage
- Facilities
- Pools, spas and events shape the liability side
The basics
What Is Hotel Insurance?
A combined policy for a hotel or guest house. Instead of buying each cover on its own, a hotel policy puts the sections a hotel is likely to need on one schedule, each with its own limit.
Buildings and contents
The structure, furniture, fittings and equipment, against fire, flood, storm, theft and other insured events.
Public and products liability
Injury or damage to guests and others, including from food and drink you serve.
Employers’ liability
For staff who are injured or fall ill because of their work.
Guests’ property
Loss of or damage to guests’ belongings you are responsible for.
Business interruption
Lost income while insured damage stops or reduces bookings.
Loss of licence
Where offered, if a licensed bar or restaurant loses its licence.
How it works
How Does Hotel Insurance Work?
You describe the hotel, what it offers guests and how it is protected, choose the sections and limits, and the insurer sets terms. Changes during the year are reported so the cover keeps up.
You describe the hotel
The building, the rooms, the turnover, the staff, the restaurant and bar, and any pool, spa or events.
You choose the sections and limits
Buildings, contents, liability, guests’ property and business interruption, each with its own limit.
The insurer sets terms
The schedule lists the sections, the limits and any conditions, such as for fire safety or the kitchen.
Changes are reported during the year
New facilities, weddings and events, building work or a change in opening can change the cover.
What it covers
What Does Hotel Insurance Cover?
The building and contents, liability to guests and staff, guests’ property, and a choice of extra sections such as business interruption, loss of licence and money.
| Section | Where it sits | What to know |
|---|---|---|
| Buildings | If you are responsible | Owners insure it; operators check the lease |
| Contents and stock | Core | Furniture, linen, equipment, food and drink |
| Public and products liability | Core | The limit is set on your schedule |
| Employers’ liability | If you employ anyone | Covers injury or illness to staff |
| Guests’ property | On some policies | Limits apply per guest and per item |
| Business interruption | Optional on some policies | Income lost after insured damage, for a set period |
| Loss of licence | Sometimes offered | For a licensed bar or restaurant |
| Money and legal expenses | Optional | Shown on the schedule where included |
Guests’ belongings. A hotel can be liable for guests’ property, and displaying the required notice at reception can limit that liability. Ask the insurer how the section works.
Exclusions
What Hotel Insurance Does Not Include
Gradual damage, undeclared facilities and events, claims where fire or kitchen conditions were not met, and losses beyond the limits on the schedule.
Wear, tear and gradual damage
Maintenance and slow deterioration are not insured events.
Undeclared facilities
A pool, spa or gym the insurer was not told about.
Unmet fire conditions
A claim can be affected if fire safety or duct cleaning conditions were not met.
Guests’ property over the limit
Valuables above the per-guest limit.
Cash above the limits
Takings beyond the money limit, or left outside a safe overnight.
Cyber and booking systems
Data breaches can need a separate cyber policy or extension.
Types
Which Hotels Can Be Covered?
A wide range of accommodation businesses, from a small guest house to a large hotel. The rooms, the restaurant and the facilities each change the terms.
Town and city hotels
Independent and boutique hotels.
Country house hotels
Older buildings, often with grounds.
Guest houses and B&Bs
Smaller operations, often owner-run.
Inns and coaching houses
Rooms alongside a bar and restaurant.
Hotels with spas and pools
Leisure facilities to describe.
Wedding and event hotels
Functions, marquees and large groups.
Restaurant-led? Property cover for food-led premises is in our restaurant and café property guide.
Who it is for
Who Needs Hotel Insurance
Anyone running a hotel or guest house, whether they own the building, lease it or manage it for someone else.
Owner-operators
Insuring the building as well as the business.
Leaseholders
Where the lease decides who insures the building.
Limited companies
Insured in the company’s name.
Family-run guest houses
Often living on the premises.
New owners
Taking on a hotel for the first time.
Management companies
Running a hotel for an owner.
Hotel or B&B
Hotels vs B&Bs and Guest Houses
Both insure guests, staff and the building. A hotel can have more rooms, a restaurant open to the public and more facilities, which can widen the liability side.
| Hotel | B&B or guest house | |
|---|---|---|
| Scale | More rooms, more staff | A few rooms, often owner-run |
| Restaurant and bar | Can be open to the public | Breakfast for guests, or none |
| Facilities | Pools, spas and events possible | Usually limited |
| Guests’ property | Included or optional | Included or optional |
Two kinds of liability. Public liability is for guests and the public; employers’ liability is for staff. Our guide to public vs employers’ liability sets them side by side.
Cost
What Hotel Insurance Is Priced On
The building, the rooms, the turnover, the staff, the restaurant and facilities, the location, fire safety and the claims history. We do not print average premiums.
Why the building leads
The rebuild figure and the construction drive the property side of the price, and older or listed buildings can cost more to put right.
Why the guests matter too
The number of rooms, the restaurant, and any pool, spa or events all feed the liability side.
What the quote is rated on
The main factors
- The buildingRebuild figure and constructionBase
- Rooms and turnoverGuests, food and drinkRate
- FacilitiesPool, spa, gym and eventsRate
- Fire safetyAlarm, detection and proceduresRate
- HistoryPast claimsAdjust
Flood exposure
Flood Re is for homes, not hotels, so flood terms are set by the insurer.
Staff numbers
The employers’ liability section is rated on the staff you employ.
Seasonality
Seasonal trading affects how business interruption is set up.
Fire and guests
The Fire and Guest Conditions That Decide a Hotel Claim
Hotel claims often turn on whether fire safety, kitchen and guest-facing conditions were met. Four come up again and again.
Keep fire safety current
A fire risk assessment kept up to date, and alarms, detectors and emergency lighting tested and serviced, answer questions an insurer will ask.
Keep the kitchen ducts cleaned
Where the hotel cooks, some policies require the extraction system to be cleaned by a specialist at set intervals, with records kept.
Run pools and spas safely
Where there is a pool or spa, written procedures, supervision or signage and water testing can be conditions of the liability cover.
Declare events and new facilities
Weddings, marquees, a new spa or building work change the risk. Tell the insurer first.
Quote checklist
What You Will Be Asked for a Hotel Insurance Quote
Six things shape the quote: the building, the rooms and turnover, the restaurant and bar, the facilities, fire safety, and the claims history.
The building
Address, age, construction and a rebuild figure.
Rooms and turnover
Number of rooms, occupancy and annual turnover.
Restaurant and bar
Whether open to the public, and any licence.
Facilities
Pool, spa, gym, grounds and events.
Fire safety
Alarm, detection, risk assessment and kitchen protection.
Claims history
Recent claims and any past refusals of cover.
Comparing
Checking Hotel Insurance Quotes Side by Side
Four areas decide whether a policy suits the hotel: buildings and contents, fire and kitchen terms, business interruption, and liability and extras. None of them is the price.
Buildings and contents
- The rebuild figure and contents limit
- Deterioration of stock
- Cover for owners living on site
Fire and kitchen terms
- Fire safety conditions
- Duct cleaning conditions
- Alarm and cash conditions
Business interruption
- The indemnity period
- Cover for cancelled bookings after damage
- Cover if access is blocked
Liability and extras
- The public and products liability limit
- Guests’ property limits
- Loss of licence and legal expenses
Read the fire conditions before you buy. They can matter more to a claim than the limit. Unfamiliar terms are explained in our plain English jargon guide.
Cutting costs
How to Reduce the Cost of Hotel Insurance
The levers are strong fire safety, an accurate rebuild figure, good records, and the excess. We publish no savings figures.
Evidence fire safety
Risk assessments, alarm servicing and staff training, recorded.
Get the rebuild figure right
Too high wastes premium; too low invites a reduced claim.
Improve the security
Access control, CCTV and a safe for takings can help the terms.
Document facility procedures
Pool and spa procedures in writing.
Keep incident logs
Accident records help at renewal and with claims.
Choose the excess deliberately
A higher excess is a lever, worth using only at a level the hotel could absorb.
Glossary
Hotel Insurance Terms Explained
The words that come up most on a hotel schedule.
- Guests’ property
- Cover for guests’ belongings the hotel is responsible for.
- Contents
- Furniture, linen, fittings and equipment.
- Products liability
- Liability for injury caused by food or drink you serve.
- Business interruption
- Cover for income lost after insured damage.
- Indemnity period
- How long business interruption cover pays for.
- Loss of licence
- Cover if a licensed bar or restaurant loses its licence.
- Rebuild figure
- The cost of reinstating the building, not its sale price.
- Fire risk assessment
- A written review of fire risks and precautions.
- Average
- A reduction in a claim when the sum insured is too low.
- Excess
- The part of each claim you pay yourself.
Why MyMoneyComparison.com
Why Compare Hotel Insurance with MyMoneyComparison.com?
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces hotel owners and operators to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Using us is free.
One form, one hotel
Describe your hotel once, instead of repeating yourself to each broker.
Advice given
We are an introducer, not a broker. We do not sell policies and we do not recommend one insurer or product over another. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Incorporated
A UK company since 2013. FCA authorisation is separate and later; the register carries its date.
FAQs
Hotel Insurance FAQs
Answers on guests, fire safety, events, bookings and the building.
What is hotel insurance?
A combined policy for a hotel or guest house. It usually brings together buildings or contents, public and products liability, employers’ liability and guests’ property, with optional sections such as business interruption, loss of licence and money.
Do I need hotel insurance?
A full hotel package is not a legal requirement, but employing staff usually brings a duty to hold employers’ liability cover, with some exceptions. Lenders, landlords and booking platforms can ask for other cover too.
Am I liable for guests’ belongings?
A hotel can be liable for guests’ property, and displaying the required notice at reception can limit that liability. A guests’ property section covers this, with limits per guest and per item.
Does hotel insurance cover a guest who is injured?
Public liability covers claims from guests and visitors injured because of the hotel, such as a fall on a wet floor, up to the limit on the schedule. Food and drink claims fall under products liability.
Why is fire safety so important to insurers?
Guests sleep on the premises, so fire is a major risk for a hotel. Insurers ask about the fire risk assessment, alarms and detection, and some set conditions that affect a claim if not met.
Does hotel insurance cover cancelled bookings?
Business interruption can cover income lost when insured damage forces you to close rooms or cancel bookings. It generally follows damage the policy covers, so it will not pay for a quiet season.
Is my pool or spa covered?
It can be, if you declare it. Pools and spas add to the liability risk, and some insurers set conditions such as written procedures, signage or water testing.
Does hotel insurance cover weddings and events?
It can, if you declare them. Functions, marquees and large groups change the risk, and undeclared events can affect a claim. Tell the insurer before you add them.
Who insures the building if I lease the hotel?
The lease decides. Some leases make the landlord responsible and recharge the cost, and others make the operator responsible. Read the lease before you buy.
Does hotel insurance cover the bar and restaurant?
Yes, the contents, stock and liability for food and drink can sit on the same policy. Loss of licence cover, where offered, can protect a licensed bar or restaurant.
Is my stock covered if the freezers fail?
Only if the policy includes a deterioration of stock section, which some insurers offer as an option. It covers food and drink spoiled when cooling equipment breaks down or the power fails.
Are my belongings covered if I live at the hotel?
Not always. Some hotel policies can include the owner’s personal belongings in private accommodation, and others leave it to a separate policy. Tell the insurer who lives on site.
Does hotel insurance cover cyber attacks?
Not always in full. Booking systems and guest data are cyber risks, and a data breach or ransomware attack generally needs a separate cyber policy or extension.
Does hotel insurance cover damage caused by guests?
Accidental damage by guests may be covered under the buildings or contents section, depending on the policy. Deliberate damage can be treated differently, so check the terms.
Can a hotel with a previous claim get cover?
It depends on the insurer, and past claims can affect the price and terms. Declaring claims history accurately keeps the cover sound, as undeclared claims can affect a later claim.
How do I compare hotel insurance quotes?
Look beyond the price to the fire and kitchen conditions, the guests’ property limits, the business interruption period, the liability limits, loss of licence cover and the excess.
Ready when you are
Get Quotes for Your Hotel
Tell us what you need to insure. If you picked it at the top of this page it is already on the button below. Specialist UK brokers can then come back with quotes for your hotel. Free to use, with no obligation to buy.
- Guests, staff and the building together
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- FCA authorised and regulated
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About this page
This page explains UK hotel insurance: what it covers, what it leaves out, and how fire, kitchen and guest conditions shape a claim. It is general information rather than advice. Policies differ between insurers, so read your own documents and put the questions raised here to your insurer or broker.
How we approached this page
- Published UK hotel and hospitality policies
- HSE guidance on employers’ liability cover
- The Flood Re eligibility criteria
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