Hotels Insurance
Protect your hotel from guest injury claims, property damage and business interruption with cover designed for the accommodation sector.
Get in touchWhat is hotels insurance?
Hotels insurance is a specialist policy that protects hotels from the risks of serving customers, managing premises and employing staff. It typically includes public liability, employers liability and buildings and contents cover.
Running a hotel business involves risks from food safety and customer injuries to property damage and staff claims. The right insurance means a single incident will not shut your doors.
Find insurers who understand the hospitality and food sector, so your cover reflects the specific risks your hotel business faces.
Public Liability
Covers claims from guests and visitors for injury or property damage at your hotel.
Employers Liability
Required by law if you employ anyone, covering employee injury or illness claims.
Buildings and Contents
Covers your hotel building, guest rooms, furnishings and equipment.
Business Interruption
Covers lost income if your hotel cannot operate due to fire, flood or other insured events.
Who needs hotels insurance?
Boutique hotels
Operating a small, independently run hotel
Country house hotels
Running a rural hotel with grounds and event facilities
City centre hotels
Operating a hotel in an urban location
Budget hotels
Providing affordable accommodation
Serviced apartments
Operating serviced apartment accommodation
Licensing and regulatory requirements for hotels
Hotels require a Premises Licence if they serve alcohol to guests. The licence is issued by the local authority and includes conditions requiring proof of public liability insurance. If a hotel operates a restaurant or bar open to the public, separate licensing may apply. Environmental Health registration is mandatory if you serve food, including room service and breakfast. Hotels must comply with food hygiene and safety standards.
Building Regulations and fire safety legislation are critical for hotels. Hotels must have fire safety certificates, emergency escape routes, fire extinguishers, and trained staff. Hotels with more than seven storeys or 500 m² of floor area are subject to the Building Safety Act and may require a registered Building Safety Manager. Your local Fire and Rescue Service conducts inspections and can issue enforcement notices.
Health and safety legislation requires risk assessments covering guest areas, kitchens, laundries, and staff areas. Hotels must implement controls to prevent slips, trips, and falls in corridors and bathrooms. If you employ cleaners or maintenance staff, you must provide safe working conditions and adequate training. Employers liability insurance is a legal requirement if you employ anyone.
Guest liability is a significant concern. Hotels must ensure rooms are safe, bathrooms have non-slip surfaces, and any maintenance issues are addressed promptly. Public liability insurance is essential and must cover guest-related claims. Some policies exclude certain high-risk areas (e.g., swimming pools or spa facilities), so confirm your coverage is comprehensive.
How much does hotels insurance cost?
£600 – £1,200 per year for a small 10-20 room hotel; larger establishments with 50+ rooms and conference facilities may pay £1,500 – £3,000
Real claims: what hotels insurance covers
A guest slipped in a hotel bathroom on a wet, non-slip surface that was known to be unsafe. The guest fell and broke their hip, requiring hospital admission and surgery.
Public liability covered the guest's emergency hospital treatment, surgical intervention, post-operative care, physiotherapy, and compensation for pain and suffering plus temporary disability.
£38,500 total — £26,000 hospital, surgery and post-operative care, £9,500 compensation for injury and mobility loss, £3,000 legal representation
A hotel employee was cleaning a guest room and inhaled toxic fumes from a chemical product that was stored improperly. The employee experienced respiratory distress and was hospitalised.
Employers liability covered the employee's hospital admission, respiratory treatment, medication, follow-up appointments, lost wages, and compensation for occupational injury.
£22,800 total — £14,500 hospital and medical treatment, £6,300 lost wages and compensation, £2,000 legal and claims handling
A guest became ill after eating contaminated food at the hotel restaurant. They required hospital treatment for food poisoning, including IV fluids and antibiotics.
Products liability covered the guest's hospital admission, treatment, medication, specialist follow-up appointments, and compensation for pain and suffering.
£9,600 total — £5,500 hospital and medical treatment, £3,200 compensation for illness and distress, £900 legal and claims administration
WHY CECIL
Built differently.
Guest safety cover
Hotels have a duty of care to guests around the clock. Cecil finds insurers who cover the full range of risks associated with overnight accommodation.
Buildings cover for hotel premises
Hotel buildings and their contents represent substantial value. Cecil ensures your property cover reflects the true replacement cost.
Business interruption protection
If your hotel is forced to close, the financial impact is immediate. Cecil includes business interruption to cover your lost revenue during closure.
Competitive quotes for all hotel types
From boutique B and Bs to city centre hotels, Get your cover options from hospitality insurance specialists.
Common questions about hotels insurance
Do hotels need public liability insurance?
Yes, public liability insurance is essential for hotels. Guests have a heightened expectation of safety during overnight stays, and as an accommodation provider you owe them a substantial duty of care around the clock. Injuries can occur in guest rooms, corridors, bathrooms, car parks, restaurants, and leisure facilities at any hour. A Premises Licence is required if you serve alcohol or operate a bar, and most local authorities will require evidence of public liability insurance as a standard licence condition. Hotel guest claims — particularly those involving slips, falls, and property damage — can be significant, with serious injury claims routinely reaching tens of thousands of pounds. Lenders and commercial landlords may also require proof of cover as a mortgage or lease condition. Speak to an FCA-authorised broker experienced in the accommodation sector to determine the right level of cover for your hotel.
What level of public liability insurance do hotels need?
Most hotels carry between £2m and £5m of public liability cover, with larger establishments and those with conference, restaurant, or leisure facilities commonly requiring £5m to £10m. The appropriate limit reflects the number of rooms, daily guest volume, the facilities on offer, and the nature of events hosted. City-centre hotels hosting corporate conferences and weddings face a much greater exposure than a small rural bed and breakfast. Licensing authorities often specify minimum cover requirements, and your hotel's Premises Licence conditions may dictate a floor. If you operate a spa, swimming pool, or gym, those activities may require additional specialist liability cover, as standard public liability policies can limit or exclude aquatic and fitness-related claims. Contact an FCA-authorised broker who specialises in the hotel and accommodation sector to confirm the appropriate limit for your specific operation.
Does hotel insurance cover swimming pools or spa facilities?
Standard public liability policies may specifically limit or exclude cover for aquatic facilities, including swimming pools and hot tubs, due to the elevated drowning and injury risk they present. If your hotel has a pool, spa, or hydrotherapy suite, you will typically need to arrange additional specialist liability cover or confirm with your insurer that the standard policy explicitly extends to those areas. Aquatic facilities must comply with the Health and Safety at Work etc. Act 1974 and the Management of Health and Safety at Work Regulations 1999, including the provision of qualified lifeguard supervision, poolside safety signage, and regular water quality testing. Failure to maintain these standards can affect the validity of a claim. Ensure all spa and pool risk assessments are up to date and that your insurer is fully informed of these facilities. Speak to an FCA-authorised broker to obtain the right specialist cover.
Are hotels required to have employers liability insurance?
Yes, employers liability insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 for any hotel that employs housekeeping staff, front desk agents, maintenance workers, restaurant staff, or porters. The statutory minimum cover is £5m, though most commercial policies provide £10m. You must display a valid employers liability certificate on your premises and make it available to Health and Safety Executive inspectors. Failure to hold cover can result in fines of up to £2,500 per day. Hotels present diverse employee risks — from manual handling injuries in housekeeping to slip hazards in kitchens and exposure to chemical cleaning agents. Seasonal and temporary staff are still classed as employees and must be covered. Confirm the scope of your policy with an FCA-authorised broker before bringing new staff on board, particularly if you use agency workers.
Does hotel insurance cover food poisoning claims from restaurant service?
Products liability insurance covers claims if food served in your hotel restaurant, bar, or room service causes food poisoning or an allergic reaction. Hotels with food and beverage operations must register with Environmental Health as food businesses and obtain a Food Hygiene Rating. Under Natasha's Law, prepacked-for-direct-sale food requires full allergen labelling, and all food service staff must be trained on the 14 major allergens. If an Environmental Health inspection identifies poor hygiene practices contributing to a food poisoning incident, your insurer may investigate whether you took reasonable precautions. Room service introduces additional chain-of-custody risks — food transported between floors or stored before service can deteriorate quickly. Ensure your policy explicitly covers allergen incidents and that your Food Hygiene procedures are documented. Contact an FCA-authorised broker to confirm the scope of your products liability cover.
What happens if a guest is injured in my hotel and sues?
If a guest is injured at your hotel and pursues a claim, your public liability insurer will appoint a solicitor to manage your legal defence and, where appropriate, negotiate a settlement. Cover applies where the injury resulted from a breach of your duty of care — for example, a guest slipping on a wet floor that was not signposted, or being injured by faulty furniture your maintenance team should have repaired. The policy covers legal representation, court costs, expert witness fees, and any compensation awarded. Cooperation with your insurer is critical from the moment a claim is notified. You should not admit liability or make any direct settlement with the guest without your insurer's consent. Keeping detailed maintenance records and incident logs significantly strengthens your position if a claim is disputed. Speak to an FCA-authorised broker about ensuring your limits are sufficient to cover the full range of guest injury scenarios.
Interested in Hotels insurance?
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