A B&B can be a highly rewarding home business, but ownership comes with very specific risks.
Many people dream of opening a B&B and just as important as a perfect location and customer experience is the right bed and breakfast insurance.
Many owners begin a B&B as the first business they have ever run and misunderstand the importance of coverage.
There is often a far greater focus on trying to keep up with daily tasks, advertising effectively, and bringing in enough money. It’s not uncommon for B&B owners to assume that because they already had coverage for the building – such as their homeowners insurance, if it is in their own home – that they already have the bed and breakfast insurance they require. That said, in the vast majority of cases, this could not be further from the truth.
Many municipalities and townships have by-laws requiring a B&B to carry, at the very least, additional liability insurance coverage. That said, a savvy owner will also want to look into other types of policy as well. This can help them to be sure that they won’t suffer a preventable loss that could cause them financial devastation.
A bed and breakfast insurance policy will differ from a standard homeowners policy.
Remember that you’re not just having friends and family to stay. In the case of a B&B, your guests are customers, which means that you’ll need commercial-level coverage, even if your business is located in your own home. While you provide accommodation to strangers, you need to make sure that you are protected against damage they could cause as well as from legal costs if they decide to sue you for some reason.
Speak with an insurance agent with experience with the type of coverage a B&B will require in order to ensure you find the perfect match.
Typically speaking, solid bed and breakfast insurance coverage will include a public liability policy on top of your standard homeowners policy. A good quality B&B package will also usually include B&B liability extension, additional coverage against guest-caused theft and vandalism, building contents insurance, goods held for sale coverage, crime extension, equipment breakdown extension, identity theft, business income extension, and additional living expenses extension for B&B.