Running a B&B is a dream lifestyle job for many people, whether as part of a retirement plan, an escape from city life, or simply a way of cashing in on a spare room when the children have flown the nest.
According to the B&B Association, the UK B&B industry is worth £2 billion, with travellers staying 50 million guest nights in B&Bs around the country each year. The humble B&B is so popular now with people seeking that personal touch, that it accounts for up to a fifth of all serviced accommodation in the UK1.
But with guests and suppliers constantly coming in and out of the property, and the amount of cooking and cleaning involved, there are plenty of risks too. If you want to protect your investment, having good B&B insurance is vital.
Here’s an overview of what you should be looking for in your bed and breakfast insurance policy.
Public liability covers you for compensation and legal fees if a guest, supplier, or member of the public is injured, or their property is damaged as a result of your negligence. You’re not obliged to have public liability, but it’s a valuable cover to protect your business.
One cover you are obliged to have, if you have any employees that aren’t family members, is employers liability. This covers you if an employee falls ill, is injured or killed, or their property damaged as a result of working for you. This includes cover for work-related anxiety or stress.
If a guest falls ill as the result of a product you’ve served them, such as food poisoning from a meal or an allergic reaction to toiletries you supply, then you could be held liable. Product insurance should cover you for compensation and legal costs.
Without your building you would have no business, so you require adequate buildings cover. This should cover you if your property is damaged as a result of fire, theft, vandalism, or storm damage. The amount you’re insured for should cover the cost of the premises being rebuilt.
Imagine if the contents of your B&B or the fixtures or fittings you use on a daily basis were lost, damaged or stolen? Would you still be able to operate, and get back on your feet quickly? Contents insurance is there to make sure that you can.
Business Interruption Insurance
If your building is damaged and you’re unable to operate your B&B, this should provide cover for your overheads, wages, and contribute to any loss of profits and increased costs you face trying to get your business back on track.
You’re responsible for your guests’ belongings while they’re staying with you. Possessions cover provides protection for any loss or damage to their property.
This is a summary of the main types of insurance cover you should look for in a B&B policy. For further information, seek advice from a specialist b&b insurance broker.
Quotes from well-known and specialist insurers, including: