What Type of Insurance You Need While Running a B&B or Guesthouse?
If you are above 50, live in a big home and your children are not living with you, turning your house into a B&B or guesthouse is a great idea from the point of view of making money and evading the loneliness.
However, before you work on this idea, it’s essential to give a thought to B&B or guesthouse insurance. People in such a situation may have a lot of questions about what type of insurance is required and whether the standard home insurance is not enough.
The fact is that when you open up your home to guests, your standard home insurance will be insufficient to cover your new liabilities.
Here’s the information on what type of additional home insurance you’ll need so as to get the right kind of cover.
Additional Liabilities of a B&B or Guesthouse
Running a B&B brings you a responsibility of looking after your home as well as the safety of your guests and yourself.
There are several differences between a standard residential home and a home that is out-and-out business, such as:
- You’ll have more money in your home that may need protection
- You might have to hire staff at your B&B and hence you’ll require insurance as an employer
- Providing breakfast and accommodation to guests needs a particular level of insurance
- You’ll have multiple TVs, beds and chairs, and so, you need an increased level of contents cover
- If a guest gets injured in your B&B, s/he may try to claim against you or your business. In that case, you’ll need insurance meant for the business
- If there is damage to your B&B, like roof damage or leakage, it’ll affect your guests and even you, which could result in refunds and a hindrance in your business, along with the actual cost of repairing the damage
What Should Be Included in B&B or Guesthouse Insurance?
Bed and breakfast or guesthouse insurance should cover you for:
- Home emergencies
- Key loss
- Malicious damage
You should also try to find an insurance package that includes:
- Buildings insurance
- Public liability insurance
- If there is domestic staff employed by you for your B&B or guesthouse, you must ensure that they are covered by your employer’s liability insurance. In addition, you may also want options of additional cover, like personal possessions cover.
Personal Possessions Cover
With so many guests frequenting your home, it’s a good idea to check additional cover options to get compensated for damaged, lost and stolen items.
Business Buildings and Contents Insurance
Business buildings and contents insurance can protect your B&B from damage caused by flood, fire or burglary.
Business Interruption Insurance
This can protect you if you have to temporarily close your B&B due to damage.