Do Resorts and other Leisure properties need Insurance_

Are you looking to start a resort or already own one? It becomes imperative for you to protect your resort from potential lawsuits with business insurance. However, you should first have a solid plan that states all your risks as a business owner and how you plan to cover them. Not all your risks get covered by purchasing a basic resort insurance policy. You must first know what your risks are.

You can simply consult an insurance professional or a business attorney to identify your risks. The risks for the resort can be wide because of the wide range of risk exposures involved in the resort business. Before paying expensive fees we are here to help you identify a few potential risks that could arise and how an insurance policy can protect you in the event of a claim. However, let’s look at some of the procedures you can manage to better protect yourself from legal and contractual issues. 

Risk management for a resort

Below are the various risk management controls that a resort can put in place

●     Information security policy

●     Privacy statement

●     Standard customer contracts

●     Standard agreement for vendors

●     Recall plan

●     Vendor certification process

●     Quality control program 

However, having all these controls in just not enough. Sure they protect you from potential claims and lawsuits, but nowadays you can be sued for any reason. Let us review some of the common types of resort business insurance policies.

1. General liability insurance - This type of insurance covers your resort business from any claims arising out of bodily injury or property damage. When property coverage is added to general liability policy, this is often referred to as business owner policy. This is a wide range of policy that protects your business from damages caused due to any act of employees or injuries to the third party on the business premises.

2. Commercial auto insurance - It might happen that your resort depends on the company vehicles for the purpose of delivering supplies, maintaining landscape or shuttling guests. Whether you own a large fleet or a few company cars, commercial auto insurance protects employees, customers and vehicles. A commercial auto insurance policy can cover trucks, flatbeds, vans, cars, pickups, etc. This policy might include collision coverage, medical payments, liability insurance, and rental disbursement.

3. Professional liability insurance - Professional liability insurance, also known as errors and omissions policy covers against negligence and other events that a general insurance policy does not cover. Depending on the uniqueness of your property, it can also cover libel, breach of contract or slander as well as real estate transaction discrepancies and service errors. If your resort includes spa and massage services, the errors and omissions policy is a must-have to protect against professional liability associated with the activities. Don’t go without a professional liability insurance policy to round out your risk management.

4. Liquor liability - If you sell or serve liquor in your resort premises, liquor liability insurance will save you from loss related to this segment of your business. While you should always teach your employees designated driving and safe serving of alcohol, a liquor liability protects your employees from intoxicated guests, damages caused due to bar fights or other alcohol-related claims.
5. Worker’s compensation insurance - It is an undeniable fact that employees are the heart of your resort and the main reason for your success. A worker’s compensation insurance can protect your employees. It will also bear the costs related to the medical expenses if an employee is injured during performing his/her duties. A worker’s compensation minimizes costs while maintaining employee morale.

Since now you have an idea about the different types of resort insurance policies, let’s look at the most likely claims and how resort insurance will protect you in the event of the claim.

●     General liability insurance claim - Let’s say a vendor or a customer is on a routine visit. The day before the visit, your cleaning crew left a slippery floor and forgot to use anti-skid wax. The vendor or customer slips when walking around the premises and becomes severely injured! During such instances, general liability insurance will protect you by paying for the legal defence if the customer decides to file a lawsuit against the injuries.

●     Property insurance claim - let’s say one day your master switch malfunctions and this causes an electrical fire on your premises. The fire spreads throughout the location burning all your equipment and possessions. If you own property insurance, then rebuilding for the damages is covered. Therefore you are not liable to pay the extra costs. It will cover not only the cost of replacing your damaged content but also the cost to clean the debris from the location.

●     Worker’s compensation insurance claim - Let’s go back to the first example where your cleaning crew leaves the floor wet and does not use an anti-skid wax. One of your employees trips and falls on the slippery floor and gets heavily injured. A worker’s compensation insurance can pay for the employee’s medical costs as well as the lost wages for the period he/she is out of work due to injury. 

Final words

Resort insurance will provide intangible benefits to your business. Though few accidents can be controlled, others are unexpected. A resort insurance policy efficiently protects against such situations. If you are unsure about what type of insurance policy is best suitable for your resort, consult an insurance broker. He is a sole identity who will research numerous policies from various companies and provides you with the best suitable plan.