Obtaining an accurate hotel insurance quote depends on presenting the property and its operations clearly to insurers who understand the sector. A hotel insurance quote is only as good as the information behind it. Insurers price each hotel on its specific characteristics, so the clearer and more complete the presentation, the more accurate and competitive the resulting quotes tend to be.
How a Quote Is Produced
Rather than applying a fixed price list, insurers assess each hotel individually, weighing the property, the trade, the liability exposures and the claims history before offering terms, much as set out in our guide to how commercial property quotes are calculated. This is why two similar-sized hotels can receive very different quotes.
Presenting the risk well to insurers whose appetite suits the property is central to securing competitive terms, and is a large part of what a specialist broker does. For the range of covers a quote will usually price, see our hotel insurance guide.
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Information Insurers Typically Ask For
To produce an accurate hotel insurance quote, insurers generally request the following (our guide to the information needed for a quote sets out the parallel for licensed premises):
- Premises details, location, construction type, age, number of rooms, and whether the building is listed.
- Ownership and operation, whether the policyholder owns, operates or both, and any lease or franchise arrangements.
- Trading information, turnover, the split between accommodation, food and beverage, and other income, and occupancy patterns.
- Staffing, number of employees and the wage roll, including part-time and seasonal staff.
- Facilities, kitchens, restaurants, bars, spa, swimming pool, leisure or conference facilities.
- Guest profile, whether the hotel serves holiday, corporate, or contract guests such as asylum accommodation.
- Risk protections, alarms, sprinklers, kitchen fire suppression, and security arrangements.
- Claims history, typically the previous five years.
Why Accurate Sums Insured Matter
The sums insured in a quote drive both the price and the protection. Buildings should be insured on a reinstatement basis reflecting the full rebuilding cost, not market value, as our guide to commercial building insurance explains, and these values are worth reviewing regularly as rebuilding costs have risen.
Business interruption figures should reflect the hotel's income and fixed-cost structure, with an indemnity period long enough to allow for reinstatement and the recovery of occupancy. Understating these figures can lead to a shortfall at claim time even where a quote looks competitive.
Comparing Quotes Properly
When comparing quotes, price is only part of the picture. Differences in cover, limits, excesses, indemnity periods and policy conditions can make a cheaper quote more expensive in practice if it leaves an exposure unfunded.
Comparing quotes on a like-for-like basis, same sums insured, same covers, same conditions, gives a clearer view of value. Our hotel insurance cost guide explains the factors that drive the underlying premiums.
Owner, Operator and Franchise Considerations
Where the hotel is owned and operated by different parties, each may need its own quote covering its share of the exposures, and the two should be aligned. Franchised hotels should ensure their quotes meet the franchisor's minimum requirements. Our insurance for hotels guide looks at how these structures affect cover.
Getting a Quote with Taurus
As an independent brokerage based in the City of London, Taurus Risk prepares hotel insurance quotes by presenting each property accurately to insurers whose appetite suits the risk, across owner, operator and franchised structures. We help gather the right information, set appropriate sums insured, and compare terms on a consistent basis, drawing on a specialist broker's access to the market. To start, request a quote and we will guide you through what is needed.
Frequently Asked Questions
What do I need for a hotel insurance quote?
Insurers typically ask for premises details, ownership and operation arrangements, trading information, staffing, facilities, guest profile, risk protections and the previous five years of claims to produce a hotel insurance quote.
Why do hotel insurance quotes vary so much?
Because insurers price each hotel on its individual characteristics, location, construction, trade, facilities, guest profile and claims history, quotes for similar-sized hotels can differ significantly.
Should I compare hotel insurance quotes on price alone?
No. Differences in cover, limits, excesses and conditions matter as much as price. Comparing quotes on a like-for-like basis gives a clearer view of value.
How long does it take to get a hotel insurance quote?
Timescales depend on the size and complexity of the hotel and how complete the information is. Providing accurate details up front helps insurers respond more quickly.
