Best Business Insurance for Bed & Breakfasts (2023)

When searching for business coverage for your bed and breakfast, you will typically come across two primary types of insurance providers:

• Independent insurance agents/Brokers: Independent insurance agents or brokers work with multiple insurance companies and offer a wide range of coverage options. They can assess your specific needs, gather quotes from different insurers, and help you compare policies to find the best coverage at the most competitive price.
• Direct insurance companies: Direct insurance companies are insurance carriers that sell their policies directly to customers without involving intermediaries like agents or brokers. These companies often have an online presence and provide an efficient and convenient way to obtain insurance coverage.

Both independent agents/brokers and direct insurance companies have their advantages. Independent agents can offer personalized guidance and expertise, helping you navigate the complex insurance landscape. They can also provide ongoing support and assistance with claims. On the other hand, direct insurance companies offer convenience and accessibility, allowing you to manage your coverage online at your convenience.

Ultimately, the choice between an independent agent/broker and a direct insurance company depends on your preferences, comfort level with technology, and the level of guidance you require in selecting and managing your bed and breakfast insurance coverage.

Finding the right insurance coverage for your bed and breakfast is essential to protect your business from potential risks and liabilities. Here are the seven steps to help you find the coverage you need:

1. Assess your risks: Begin by identifying the specific risks associated with your bed and breakfast. Consider factors such as the size of your property, the number of guests you accommodate, the services you offer (e.g., meals, events), and any potential hazards or vulnerabilities. This assessment will help you determine the types and amount of coverage you require.
2. Research insurance providers: Look for reputable insurance providers that specialize in business insurance or have experience insuring bed and breakfast establishments. Explore their websites, read customer reviews, and evaluate their reputation, financial stability, and claims handling process. This research will help you narrow down your options to reliable and trustworthy insurance companies.
3. Get multiple quotes: Contact several insurance providers to request quotes for the coverage you need. Provide them with accurate and detailed information about your bed and breakfast, including its size, location, services, number of employees, and any unique aspects. By obtaining multiple quotes, you can compare coverage options, policy limits, deductibles, and premiums to find the most suitable and affordable insurance package.
4. Understand policy coverage: Carefully review the coverage details and policy documents provided by each insurance provider. Pay attention to the specific risks and perils covered, exclusions, limits, and any additional endorsements or optional coverages available. Make sure the policies align with your bed and breakfast’s specific needs and provide adequate protection for potential risks.
5. Consider bundling policies: Some insurance companies offer package policies or business owner’s policies (BOPs) that combine multiple coverages into a single, comprehensive plan. Bundling your insurance policies can often result in cost savings and simplifies the management of your coverage.
6. Seek professional advice: If you’re unsure about the specific insurance needs of your bed and breakfast or need guidance in navigating the insurance market, consider consulting an experienced insurance agent or broker. They can provide expert advice, assess your risks, customize coverage options, and help you make informed decisions about your insurance needs.
7. Review and update regularly: As your bed and breakfast evolves, regularly review your insurance coverage to ensure it aligns with any changes in your operations, property value, or services offered. Stay in touch with your insurance provider or agent to discuss updates, modifications, or additional coverages that may be necessary to protect your business adequately.

By following these steps, you can find the coverage you need for your bed and breakfast, giving you peace of mind and financial protection in the face of potential risks and liabilities.

The cost of general liability insurance for a bed and breakfast can vary depending on several factors. Here’s some information to help you understand the cost considerations:

• Business size and revenue: The size of your bed and breakfast, including the number of rooms, guests you accommodate, and your annual revenue, can impact the cost of insurance. A larger business with more guests and higher revenue may have higher premiums compared to a smaller establishment.
• Location: The geographic location of your bed and breakfast plays a role in determining insurance costs. Factors such as the state, city, crime rates, and weather patterns in your area can influence insurance premiums. Locations with higher risks or more frequent claims may have higher insurance costs.
• Coverage limits: The coverage limits you choose for your general liability insurance policy will affect the cost. Higher coverage limits provide greater protection but may result in higher premiums. It’s important to evaluate your business’s specific risks and liabilities to determine the appropriate coverage limits for your bed and breakfast.
• Deductible amount: The deductible is the amount you’re responsible for paying out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower your insurance premiums, but it also means you’ll have a higher financial responsibility in the event of a claim.
• Claims history: Insurance companies consider your claims history when determining premiums. If you have a history of frequent claims or high-value claims, it may lead to higher insurance costs. On the other hand, a clean claims history may result in lower premiums.
• Risk management practices: Demonstrating good risk management practices, such as implementing safety measures, conducting regular inspections, and maintaining proper documentation, can help lower insurance costs. Insurance companies often offer discounts or incentives for businesses that actively manage and mitigate risks.
• Additional coverage needs: If you require additional coverages, such as commercial property insurance, product liability insurance, or workers’ compensation insurance, the overall cost of your insurance package will increase.

On average, bed and breakfasts in America spend between $350 to $700 per year for $1 million in general liability coverage. However, it’s important to note that this is just an average range, and your actual premium may vary based on the factors mentioned above.

To get an accurate cost estimate, it’s best to reach out to insurance providers directly and request personalized quotes based on your bed and breakfast’s specific details and coverage needs. By comparing quotes from multiple insurers, you can find the most competitive rates while ensuring adequate coverage for your business.

General liability insurance for a bed and breakfast provides coverage for a variety of situations that may lead to claims or lawsuits. Here are some common scenarios where general liability insurance can offer protection:

• Slip and fall accidents: If a guest or visitor slips, trips, or falls on your premises and suffers injuries, general liability insurance can cover their medical expenses, including hospital bills, doctor’s fees, and medication costs.
• Property damage: Accidental damage to someone else’s property can occur within your bed and breakfast premises. For instance, if a guest’s personal belongings are damaged due to a fire or water leak caused by your negligence, general liability insurance can help cover the cost of repairing or replacing the damaged items.
• Personal injury claims: General liability insurance can provide coverage for personal injury claims arising from non-physical harm, such as defamation, libel, or slander. If a guest alleges that your business made false statements about them, leading to damage to their reputation, general liability insurance can help cover legal fees and potential settlements.
• Food-related illnesses: If a guest becomes ill due to food poisoning or allergic reactions caused by the food served at your bed and breakfast, general liability insurance can help cover medical expenses, legal costs, and any settlements or judgments resulting from a lawsuit.
• Advertising liability: General liability insurance can provide coverage for claims of false advertising, copyright infringement, or misleading marketing practices. If a competitor accuses your bed and breakfast of using their copyrighted material without permission or making false claims about your services, it can help cover legal costs associated with defending against such claims.
• Damage to rented premises: If you rent a property for your bed and breakfast and accidentally cause damage to the rented premises, such as damaging walls or fixtures, general liability insurance can help cover the cost of repairs.

It’s important to note that general liability insurance has limits and exclusions. It’s crucial to review your policy carefully to understand the specific coverages, exclusions, and limits that apply to your bed and breakfast. Additionally, it’s recommended to consult with an insurance professional or agent who can provide guidance tailored to your business’s unique needs and risks.

In addition to general liability insurance, there are several other types of insurance coverage that are important for bed and breakfast establishments. These additional coverages provide enhanced protection against specific risks and help safeguard your business. Here are some types of insurance that bed and breakfasts should consider:

• Commercial property insurance: It protects your bed and breakfast’s physical assets, including the building, furnishings, equipment, and supplies, from covered perils such as fire, theft, vandalism, or natural disasters. It helps cover the costs of repairing or replacing damaged property, ensuring that your business can quickly recover from a loss.
• Business interruption insurance: It provides coverage for lost income and ongoing expenses in the event that your bed and breakfast is temporarily unable to operate due to a covered peril, such as a fire or natural disaster. It helps compensate for the financial losses you may incur during the period of interruption, allowing you to maintain your business continuity.
• Workers’ compensation insurance: If your bed and breakfast has employees, workers’ compensation insurance is typically required by law in most states. It provides coverage for medical expenses, lost wages, and rehabilitation costs if an employee suffers a work-related injury or illness.
• Commercial auto insurance: If you have company-owned vehicles or use personal vehicles for business purposes, commercial auto insurance is necessary. It covers vehicles used for business operations, including transportation of guests, supplies, or other business-related activities.
• Umbrella insurance: It provides an extra layer of liability coverage that extends beyond the limits of your primary insurance policies, such as general liability and commercial auto insurance. It offers additional protection in the event of a major lawsuit or significant financial loss that exceeds the limits of your underlying policies.

It’s essential to evaluate the specific risks and needs of your bed and breakfast to determine the appropriate coverage types and limits for your business. Consulting with an insurance professional who specializes in hospitality insurance can provide valuable insights and help tailor the insurance package to your specific requirements.

In addition to obtaining the necessary insurance coverage, there are several additional steps you can take to further protect your bed and breakfast business. These measures can help mitigate risks, improve safety, and enhance the overall security of your establishment. Consider implementing the following:

• Establish clear safety policies and procedures: Develop comprehensive safety policies and procedures for your bed and breakfast, covering areas such as guest safety, employee safety, emergency protocols, and maintenance guidelines. Train your staff on these policies and regularly review and update them to ensure they reflect current best practices.
• Conduct regular inspections and maintenance: Perform routine inspections of your property, including guest rooms, common areas, and outdoor spaces, to identify and address any potential hazards or maintenance issues promptly. Regular maintenance helps prevent accidents and reduces the risk of property damage or guest injuries.
• Implement security measures: Install security systems, including surveillance cameras, alarms, and secure locks, to deter theft, vandalism, and unauthorized access. Consider providing guests with secure storage options for their valuables, such as in-room safes or lockers, to minimize the risk of theft incidents.
• Maintain adequate lighting: Ensure that all areas of your bed and breakfast property are well-lit, both indoors and outdoors. Sufficient lighting helps prevent accidents, deters criminal activity, and creates a safe and welcoming environment for guests and staff.
• Train staff on safety and security: Provide comprehensive training to your employees on safety protocols, emergency procedures, and customer service practices. Educate them about potential risks and empower them to identify and address safety concerns promptly. Encourage open communication and create a culture of safety awareness throughout your organization.
• Regularly review and update insurance coverage: Periodically review your insurance policies to ensure they align with the current needs and risks of your bed and breakfast. As your business evolves, consider consulting with an insurance professional to assess whether additional coverage or adjustments to existing policies are necessary.

By implementing these additional steps, you can demonstrate your commitment to the safety and well-being of your guests, protect your business from potential liabilities, and enhance the overall guest experience at your bed and breakfast.

Case Studies: Insurance Examples for Bed & Breakfasts

Case Study 1: General Liability Insurance

Sunrise Inn, a charming bed and breakfast nestled in a scenic location, encountered a situation where a guest slipped on a wet floor in the common area and suffered a fractured arm. With general liability insurance in place, Sunrise Inn was protected against the costs associated with the guest’s medical expenses and potential legal claims.

The insurance coverage ensured that the guest’s well-being was taken care of and shielded the bed and breakfast from financial liability.

Case Study  2: Commercial Property Insurance

Cottage Retreat, a historic bed and breakfast with beautifully furnished rooms experienced a severe storm that resulted in significant damage to its roof and interior. Thanks to their commercial property insurance, Cottage Retreat was able to cover the costs of repairing the roof, restoring the affected areas, and replacing damaged furniture and amenities.

The insurance coverage helped the bed and breakfast quickly recover and resume operations without incurring substantial financial losses.

Case Study  3: Workers’ Compensation Insurance

Harmony Haven, a thriving bed and breakfast with a dedicated staff, had an unfortunate incident where one of its employees slipped in the kitchen and suffered a back injury. With workers’ compensation insurance, Harmony Haven was able to provide the injured employee with the necessary medical treatment, cover lost wages during recovery, and ensure a smooth return to work.

This insurance not only protected the employee but also protected the bed and breakfast from potential legal claims related to workplace injury.

Case Study 4: Commercial Auto Insurance

Tranquil Retreat, a bed, and breakfast that offers shuttle services to nearby attractions, had an accident involving their shuttle van. While transporting guests, the van was involved in a collision with another vehicle, resulting in damages to both vehicles and injuries to the occupants.

Fortunately, Tranquil Retreat had commercial auto insurance, which covered the repair costs for the van, medical expenses for the injured guests, and potential liability claims.

The insurance coverage provided peace of mind and financial protection for the bed and breakfast in such unforeseen circumstances.