You've got insurance, but are you covered?
| I review many bed and breakfast insurance policies for innkeepers around the United States. As you can imagine, sometimes I find the insurance coverage is adequate and competitively priced. In those circumstances, I might recommend that you stay with your current bed and breakfast insurance provider, but increase a specific limit of insurance or add a specific coverage. Most often, I find the insurance program less than adequate, and written by an agent who does not specialize in providing insurance solutions for Bed and Breakfast properties. I have seen several instances of insurance gaps unknowingly and unintentionally left by agents unfamiliar with the unique insurance needs of a Bed and Breakfast owner. |
Many insurance agents feel it is appropriate to write a homeowners policy, and include an “incidental business” endorsement. On rare occasions, this approach might be acceptable. In most cases, I find innkeepers trusting their largest asset and income base, to a one page endorsement that in essence simply removes the “business pursuits” exclusion from their homeowners policy.
Innkeepers should ask themselves this question: “Is the primary function of my structure a home...or a business?” Be brutally honest - if you have 3 guest rooms and are generating income from the structure… is the business exposure really incidental and secondary? |
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Many “incidental business pursuits” endorsements do not pick up coverage for “Loss of Business Income”. If you have a wedding party scheduled for June 15th and a tornado damages your building on June 2nd, forcing you to cancel all reservations, you may not have coverage to pay for the loss of income you will suffer.
If your guest sprains an ankle and breaks a wrist falling down the stairs, wouldn’t you like to have the medical bills covered? “Medical Payments” is a goodwill payment, which provides coverage for medical expenses if someone is injured on your premises or by your products. Some endorsed homeowners policies EXCLUDE medical payments.
In most cases, Bed & Breakfast properties should be covered by a commercial insurance policy. We offer solutions that are competitively priced, and address both the business exposure and the personal liability exposure.
Call today for a free policy review.
1-800-899-0000
Karmen Ward—Ailes
karmen.ailes@unitedagy.com
www.uiabnb.com
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