Hoteliers Underinsurance – In Focus

From guest facilities to seasonal staff, the hospitality sector has unique risks. This free guide explains how hoteliers can fall into the underinsurance trap and what to do about it. Don’t let an outdated valuation or missed asset leave your business exposed when it matters most.

Download the Free Guide (PDF)

Executive Summary

This concise one-pager explores the key ways hotels and hospitality businesses are underinsured, and how that can affect claims and continuity.

Common areas of underinsurance for hoteliers:

• Buildings: Sums insured often based on market value, not rebuild cost

• Fixtures & fittings: Items like kitchen equipment or spa assets underdeclared

• Business interruption: Indemnity periods that don’t reflect real recovery timelines

• Seasonal variations: Inadequate cover for fluctuating occupancy or staff levels

• Liability cover: Gaps in protection for events, contractors, or guest injury

Why it matters:

• Payouts can be reduced or delayed, especially where the average clause is applied

• Downtime after an incident may exceed insured recovery periods

• Replacing specialist or luxury items could be far more expensive than expected

How to avoid it:

• Conduct regular valuations and asset audits

• Review policies annually or after refurbishments

• Seek tailored hospitality cover with a Chartered Insurance Broker

This guide is ideal for hotel owners, managers, and hospitality operators who want confidence in their cover.

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