Business Insurance to Protect Hotels and Motels

The hospitality industry requires unique insurance coverage for hotel and motels. Whether you’re a small motel, a 3 story hotel or an eclectic bed and breakfast, no two are the same and each face unique risks. That’s why we customize a policy to fit your specific business.  

Business insurance coverage a hotel or motel should consider: 

Equipment breakdown  

Businesses rely on mechanical and electrical equipment to keep their business operating. Are you prepared to cover the unexpected expense if something breaks down? Systems that you rely on daily such as the air conditioning units, boilers, computer systems, transformers and electrical switchgear are susceptible to breakdown. An equipment failure can have a serious impact on your business and potentially leave your customers unhappy. Equipment Breakdown coverage may protect you against unexpected repair or replacement costs due to an electrical, mechanical, or pressure systems breakdown.  

Liquor Liability 

Restaurants located inside of hotels are becoming more and more common. This means many operations may be selling, serving, or furnishing alcoholic beverages. Understanding these exposures and what options are available to be protected is vital for hotels, motels, and even bed & breakfast facilities. 


If a hotel, motel, or bed and breakfast does own a restaurant inside of the facility, there is a good chance that perishable goods may be stored on site. Spoilage coverage provides the ability to protect yourself from a covered cause of loss that may be applicable to those perishable goods.   

Business Income  

We have a wide range of business income options to protect your net income and continuing normal operating expenses in a period of slowdown or temporary suspension due to direct physical damage to your property arising from a covered cause of loss. This could help cover your expenses and employee wages during this period.  

Extra Expense coverage may also be available with Business Income. You should work with your local Rural Mutual Insurance Agent to discuss what options you have available to you. 

Cyber Liability  

Protect your business from unseen threats. Our cyber partner provides you with proactive, comprehensive data breach protection and remediation services that help protect you and your customers from inadvertent data exposures and identity theft. Rest assured knowing your customers personal information is secure.  

Workers’ Compensation – Triage Service 

We know accidents happen. Something as simple as a slip and fall can turn into a big incident. Carrying a workers compensation policy is not only the law for employers, but it also makes good business sense. The cost of the average workers’ compensation claim would be a challenge for many employers without any coverage.  

Our clients have access to our 24/7 nurse hotline to help their employees get the right care at the right time. A simple phone call to assess the injury can help reduce the number of emergency room visits and urgent care claims filed while still providing expert medical advice for employees. 

Business Auto  

Many hotels use some type of vehicle during their work whether to pick up office supplies or employees drive a company-titled vehicle. Business auto insurance protects the company for being liable for any damage caused. A Rural Mutual Insurance agent can help you determine what level of business auto coverage you need, based on what vehicles you are responsible for and what risks you might face. 

Our local agents work with our loss control team to review potential risks in your business and provide best practice suggestions at no additional cost to you, to make your business safer. Contact a Rural Mutual agent to protect your business.