Four must-have insurance covers for boutique hotels

Cape Town - According to Oxford Languages, a boutique hotel is ‘a small stylish hotel, typically one situated in a fashionable urban location’. These hotels have become known for their style, beautiful design, intimate service and a local personality. As unique as the attributes that define them, boutique hotels require a specific set of insurance covers to mitigate against particular risks.

This is according to Juan Fourie at Santam, who says that boutique hotels are designed to fit in with the community in which they are located and often reflect the cultures and neighbourhoods around them.  “Additionally the type of traveller that enjoys staying at a boutique hotel is not defined by their age, but more by their attitude towards life. According to a survey by the Curio Collection by Hilton, 91% of guests who adore the boutique hotel experience said they are curious humans who seek unexpected and authentic experiences, which are often found at one of these properties,” says Fourie. 

As the owner of one of these unique accommodation establishments, you would want to protect your business against eventualities that are unique to the hospitality industry and make sure the doors stay open. These events include business interruption, bilking, damage to chilled refrigerated stock, breakage of glass and sanitary wear, and food poisoning.

“Cover for all the above events is essential, but I would like to highlight four areas of cover that are often overlooked for boutique hotels.”

According to Fourie, owners of boutique hotels should make sure that they also consider the following types of insurance cover for their establishment:

1. Contents cover: Boutique hotels often boast beautiful decor, which is part of the appeal. Whether this is unique pieces of furniture, or linen and bedding, make sure you cover these items for the correct value.
2. Guests’ effects: The typical guest staying at a boutique hotel is curious and adventurous. They are may own expensive electronic equipment and cameras, and could even bring their bicycle on holiday with them. Ensure that you have adequate cover for personal belongings of travellers should the unforeseen happen.
3. Cancellation of bookings: Life happens and guests may be forced to cancel their booking, leaving you in a tight spot. You can take out cover against this eventuality.
4. External signs: A sign speaks a thousand words. If yours gets damaged, you want it replaced as soon as possible so that people can find their way to your hotel. But these things are often expensive to fix or replace. You can take out insurance against damage to external signs, blinds and canopies, even if they are not on your premises.