Insurance Coverage Tips for Bed & Breakfast Owners & Professional Association of Innkeepers Members

www.uiabnb.com

By Insurance Professional Karmen Ward-Ailes

A common misconception in the Bed and Breakfast industry is that a homeowners insurance policy is able to provide adequate insurance coverage for a Bed and Breakfast operation. This is simply not true. In reality, if something happens to one of your guests, you could find that your current policy EXCLUDES "business pursuits". Which means you could be faced with loosing not only your life´s savings but also your business that you´ve worked so hard to build. Let´s explore some of the common "special needs" that should be taken into consideration when purchasing insurance coverages for your Bed and Breakfast or Country Inn.

• Bed & Breakfast owners need low cost business liability insurance for exposures that are not typically covered by a homeowner´s insurance policy. Most Homeowners insurance policies will specifically exclude "business pursuits". This means that if your paying guest is injured on your property - you may not have coverage.

• If you are a pet-friendly inn or B&B – consider a "pet contract" outlining your expectations and requirements – including proof of current inoculations.

• Have a written crisis management plan. Crisis management plans may seem unnecessary, but do you go to the grocery without a list? If you do…it can become quite a chore. If you are prepared, you can usually get in-and-out and spend a fraction of what you would spend if you are going in unprepared. Let us help you develop a written crisis management plan.

• Require Certificates of Insurance for any contracted service. A contracted service might include "in-room massage therapy". Therapeutic and cosmetic services are typically excluded from commercial insurance policies. This is a big exposure for an innkeeper. Make sure you have a certificate of insurance from your massage therapist – showing that liability coverage is in place and listing the B&B as an "additional insured".

United Insurance Agencies has been providing insurance solutions for Bed & Breakfast businesses and Hotels in the hospitality industry for over 25 years. Let us put our expertise to work for you. We can provide bed & breakfast Insurance at low costs and can do it quickly. Please call 1-800-899-0000 and ask to speak with Karmen Ward–Ailes for more information on our Bed and Breakfast Insurance program, or e-mail bnbinfo@unitedagy.com.