Hotel Insurance
Compare Hotel Insurance Quotes
Cover for hotel premises, guests and staff.
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Compare hotel insurance quotes from the UK’s leading business property insurers including;
What Is Hotel Insurance?
Hotel insurance is a specialist form of commercial property insurance that protects hotels, guest houses and serviced accommodation businesses against property damage, liability claims and lost revenue.
A typical policy bundles buildings insurance, contents cover, public liability and business interruption into a single package tailored to hospitality risks.
Whether you run a two-bedroom B&B or a 200-room city hotel, the right policy transfers costly risks to your insurer so one bad event does not close your doors.
How To Compare Hotel Insurance Quotes
Comparing quotes side by side is the fastest way to find cover that matches your property, your risk profile and your budget.
Enter your hotel details
Provide your property type, number of rooms, rebuild value, annual turnover and any leisure facilities such as pools or restaurants.
Choose your cover level
Select the core covers you need and add any optional extras relevant to your operation.
Review your quotes
Results appear side by side so you can compare premiums, excess levels and policy limits. The Financial Conduct Authority recommends reading the full policy wording before you buy.
Buy online or over the phone
Once you have chosen a policy, you can complete the purchase in minutes. Most insurers offer monthly payment options.
What Does Hotel Insurance Cover?
A standard hotel insurance policy combines several covers into one package, each protecting a different area of your business.
Buildings Insurance
Pays for repairs or a full rebuild if your property is damaged by fire, flood, storm or subsidence. Cover is based on the rebuild cost, not the market value.
Contents and Equipment Cover
Protects furniture, kitchen equipment, laundry machines and IT systems against theft, fire or accidental damage.
Public Liability Insurance
Covers compensation and legal costs if a guest or visitor is injured on your premises. Most hotels carry at least £2 million of public liability cover, though £5 million or £10 million is common for larger properties.
Employers' Liability Insurance
A legal requirement if you employ staff. You must hold at least £5 million of employers' liability cover, although most insurers provide £10 million as standard.
Failure to comply can result in fines of up to £2,500 per day.
Business Interruption Insurance
Replaces lost income and covers ongoing costs if your hotel is forced to close after an insured event. Cover periods typically range from 12 to 24 months.
Stock and Money Cover
Insures food, drink and housekeeping supplies against damage or theft, plus cash held on site up to a stated limit.
Guest Effects Cover
Pays compensation if guests' personal belongings are lost, stolen or damaged while on your premises. Under the Hotel Proprietors Act 1956, you may be liable even without negligence.
What Types Of Hotels Can You Insure?
Specialist hotel policies cover a wide range of accommodation businesses, not just large city-centre hotels.
| Accommodation Type | Key Cover Considerations |
| B&B or guest house | Lower rebuild value, owner-occupied, fewer staff |
| Boutique hotel | High-value interiors, bespoke furnishings, event hosting |
| City or chain hotel | High footfall, multiple amenities, large workforce |
| Country house hotel | Listed building risks, grounds liability, wedding venues |
| Spa or resort hotel | Pool and treatment room liability, specialist equipment |
| Serviced apartments | Short-let turnover, self-catering kitchen risks, keyless entry |
If your property also operates a standalone restaurant or bar, check whether your hotel policy extends to those areas or whether separate cover is needed.
What Is Not Covered By Hotel Insurance?
Every policy has exclusions, so read the small print before you rely on your cover.
Wear and Tear
Gradual deterioration from age or poor maintenance is not covered. Insurers expect you to keep the property in good repair.
Intentional Damage
Damage you cause deliberately to trigger a claim is excluded and may void the entire policy.
Unoccupied Property
If your hotel stands empty for 30 to 60 consecutive days, cover is often restricted or voided. Notify your insurer before any planned seasonal closure.
Guest Negligence
Damage caused intentionally or recklessly by guests is their liability, not yours. Your policy will not pay for wilful destruction.
What Add-Ons Are Available For Hotel Insurance?
Optional extras let you tailor your policy to the specific risks your hotel faces.
Cyber Insurance
Hotels handle large volumes of guest payment data. Cyber cover pays for data breach response costs, regulatory fines and business interruption caused by an attack.
Loss of Licence
If your premises licence is revoked, this add-on covers lost revenue and legal costs while you appeal or restructure.
Terrorism Cover
Standard policies exclude terrorism. A separate terrorism extension is available through Pool Re for UK commercial properties.
Legal Expenses Insurance
Covers the cost of employment disputes, contract disagreements and regulatory investigations. The Association of British Insurers recommends reviewing legal cover limits annually.
Engineering and Inspection Cover
Pays for statutory inspections of lifts, boilers and pressure systems plus breakdown repairs.
How Much Does Hotel Insurance Cost?
Premiums vary widely depending on property size, location and the covers you choose. Below is a rough guide for UK hotels in 2026.
| Hotel Size | Typical Annual Premium |
| Small B&B or guest house (up to 10 rooms) | £500 – £1,500 |
| Mid-size hotel (10–50 rooms) | £1,500 – £5,000 |
| Large hotel (50–150 rooms) | £5,000 – £12,000 |
| Resort or luxury hotel (150+ rooms) | £12,000+ |
Worked example: a 30-room seaside hotel with a bar, restaurant and small gym, valued at £2.5 million to rebuild, with six staff and £400,000 annual turnover could pay around £3,000 to £4,000 per year for a combined policy.
Paying annually rather than monthly avoids instalment charges that typically add 8–11% to the total cost.
What Affects Your Hotel Insurance Premium?
Insurers weigh several factors when pricing your policy, and understanding them helps you control costs.
Property Size and Rebuild Value
Larger buildings cost more to insure. A 150-room hotel with a £10 million rebuild value will cost far more to cover than a six-bedroom guest house.
Location and Flood Risk
Hotels in flood zones, coastal areas or high-crime postcodes attract higher premiums. Listed buildings also cost more to repair.
Amenities and Leisure Facilities
Swimming pools, spas and gym facilities add liability exposure. Each additional amenity increases the chance of a guest injury claim.
Claims History
Multiple recent claims signal higher risk. A clean claims record over three to five years can earn meaningful premium discounts.
Star Rating and Occupancy
Hotels rated below three stars may face higher premiums. Occupancy rates below 55% can also raise concerns because empty rooms attract vandalism and neglect.
How To Save Money On Hotel Insurance
Small changes to how you manage risk and buy cover can cut your premium without reducing protection.
Invest in Fire Safety
Fit smoke alarms, sprinkler systems and fire doors throughout the property. The government's fire safety guidance sets out minimum legal standards for sleeping accommodation.
Improve Security
CCTV, electronic key cards and secure car parks reduce theft and break-in claims. Some insurers offer discounts for accredited security systems.
Increase Your Voluntary Excess
Accepting a higher excess lowers your annual premium. Make sure you can afford the excess if you need to claim.
Conduct Regular Risk Assessments
The Health and Safety Executive provides free risk assessment templates. Documented safety procedures show insurers you manage risk proactively.
Compare Quotes Every Year
Loyalty rarely pays in business insurance. Comparing quotes at renewal ensures you are not overpaying for the same level of cover.
Frequently Asked Questions
Only employers' liability insurance is legally required if you employ staff. However, most lenders and local licensing authorities expect hotels to hold buildings, public liability and business interruption cover as a condition of operating.
Yes, public liability insurance covers compensation and legal costs if a guest is injured on your premises due to your negligence.
Guests are liable for damage they cause intentionally or recklessly. Your contents policy may cover accidental damage, but deliberate destruction is excluded.
Yes, but listed buildings need specialist cover because repairs must use original materials and approved methods, which increases the rebuild cost.
Pool liability is usually included under public liability, but some policies treat pools as a separate risk. Check that your cover limit reflects the additional exposure.
It compensates guests whose belongings are lost, stolen or damaged at your hotel. The Hotel Proprietors Act 1956 can make you liable even if you were not negligent.
It replaces lost room revenue and covers fixed costs like wages and loan repayments while your hotel is closed after an insured event. Cover periods are typically 12 to 24 months.
If you host weddings or conferences, check whether your policy covers event-related liability. A separate events extension or standalone policy may be needed for large gatherings.
Residential care properties need specialist care home insurance because they face different regulatory and liability requirements, including CQC registration and safeguarding duties.
Most insurers offer monthly instalments, but this typically adds 8 to 11% to the total cost. Paying annually by direct debit is usually the cheapest option.
