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 is essential for hotels. Guests can be injured on your premises at any time, and the duty of care for overnight accommodation is high.
Does hotel insurance cover guest belongings?
Some policies include cover for guests' property while on your premises. Cecil can check whether this is included or available as an option.
Do hotels need business interruption insurance?
Business interruption is strongly recommended for hotels. If a fire or flood closes your hotel, this cover replaces your lost income during the closure period.
What level of public liability do hotels need?
Most hotels carry between £5m and £10m of public liability cover depending on size and facilities.
Does hotel insurance cover event hosting?
If you host weddings, conferences or events, make sure your insurer knows. Additional cover may be needed for these activities.
What level of public liability insurance do hotels need?
Most hotels carry between £2m and £5m of public liability cover. Larger hotels with high guest numbers, conference facilities, or restaurants may require £5m–£10m. Licensing authorities often specify minimum cover requirements.
Does hotel insurance cover swimming pools or spa facilities?
Standard public liability policies may exclude or limit cover for aquatic facilities due to drowning risk. If your hotel has a swimming pool, hot tub, or spa, you will need specialist aquatic liability cover in addition to your standard policy.
Are hotels required to have employers liability insurance?
Yes, if you employ housekeeping staff, front desk agents, maintenance workers, or restaurant staff, employers liability insurance is legally required. You must display the certificate and provide proof to your local authority.
Does hotel insurance cover food poisoning claims from restaurant service?
Products liability covers claims if food served in your restaurant or room service causes food poisoning or allergic reactions. Ensure your policy explicitly covers allergen incidents, as some may limit cover in this area.
What happens if a guest is injured in my hotel and sues?
Public liability covers the claim if the injury was caused by a breach of your duty of care. For example, if a guest slips on a known wet floor that you failed to address, or is injured by faulty furniture, the policy covers legal costs, compensation, and settlement.
Interested in Hotels insurance?
We will be in contact when Cecil launches.