Insurance for Bed and Breakfasts

With Colorado being a prime tourist and vacation destination, it’s no surprise that cozy bed and breakfast accommodations are a popular alternative to motels or hotels, as well as a profitable business venture for their owners.  But if you’re already running a B&B or thinking of starting one, you may be starting to realize that your insurance needs are more complicated than you originally thought! For example:

• The term Bed & Breakfast implies that you will be…serving breakfast! Will you be ordering in from the bagel shop across the street or will you be cooking? If you’re cooking on the premises, you need general liability coverage for cooking operations.
  
  In addition, food spoilage can be a major expense. You may want to opt for food spoilage insurance.

• Will you be serving liquor? If so, you’ll need coverage for Host Liquor Liability. This protects you against claims and lawsuits arising from the serving of alcoholic beverages.
• If you’re renting out all or part of your property, you should obtain Short Term Rental insurance. 

What b & b insurance do I need to run a Bed and Breakfast?

Insurance products that all B&B’s should have:

• General liability for premises and operations
• Building coverage
• BPP (Business Personal Property) for contents

Optional insurance coverage that you might need:

• Liquor Liability is necessary if you will be serving any type of liquor, even if there’s no charge.
• If you will be hosting special events like parties and weddings, you may need special coverage.
• If your B&B will allow guests to bring their pets, you will also need insurance to cover liability and property damage.

Does my Bed & Breakfast need Umbrella Insurance?

Umbrella coverage is liability insurance that protects you against major claims and lawsuits by providing additional coverage beyond the limits of your other policies.  If the value of your building and contents exceeds $1,000,000 we recommend that you seriously consider purchasing umbrella insurance.