Motel Insurance Overview
Motel def: a hotel designed for motorists and usually has a parking area for motor vehicles. Entering dictionaries after World War II, the word motel, coined as a portmanteau contraction of “motor hotel”, originates from the Milestone Mo-Tel of San Luis Obispo, California (now called the Motel Inn of San Luis Obispo), which was built in 1925. The term referred initially to a type of hotel consisting of a single building of connected rooms whose doors faced a parking lot and in some circumstances, a common area or a series of small cabins with common parking. Motels are often individually owned, though motel chains do exist. Source: Wikipedia
Who Needs Motel Insurance?
Motel insurance is a necessity for any type of establishment that provides lodging for guests on a short-term basis. The facilities provided by such establishments may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, additional furniture, televisions and en suite kitchen facilities. Some establishments that need insurance include;
- Boutique hotels
- Destination resorts
- Conference centres
What Does Motel Insurance Cover?
Similar bodily injury and property damage coverage typically found in the property and commercial general liability insurance policies are also found in motel insurance policies but are tailored to the unique needs of the motel industry. These unique needs might mean that liability coverage is needed for an onsite pool or other shared amenities. Some of the unique types of coverage available to motel insurance policies include, but it not limited to;
- Emergency evacuation expense
- Ordinance or law, including increased cost of construction and demolition costs
- Interruption of utility services
- Liquor liability
- Business interruption
Common Motel Insurance Claims
As it is expected that motels exercise a high legal duty of care to do everything reasonably possible to ensure that the premises and facilities are safe for all guests, it is important to effectively prevent accidents wherever and whenever possible. Common motel insurance claims include, but are not limited to;
- Slips, trips and falls
- Broken furniture
- Water damage
- Bed bugs
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