If you're finalising the opening of your own motel, one of the things you want to ensure is that you have the proper type of insurance. Liability insurance is a legal requirement, so you know that's a given, but there are several other types of coverages that aren't as commonly known or legally required that could benefit you. Here are those coverages with a brief description of what they offer.
Business Interruption Coverage -- What happens if there's a fire or physical damage to your motel that causes you to shut down the doors while repairs are made? You will lose money during the downtime unless you purchase business interruption insurance, which protects you in the event that you have to shutter your motel for weeks or months. With business interruption insurance, you will receive money that allows you to pay wages to your employees, merchant fees for food and cleaning supplies and provide any other costs related to the normal operation of your running your motel.
Crime Coverage -- Commercial crime insurance coverage protects your motel in the event that a customer steals something valuable from your premises. But in addition to the theft of physical items, crime insurance also protects you from forgery, document alteration, embezzlement and computer fraud. And the coverage also kicks in even if the burglary is committed by one of your motel employees. In addition, this kind of insurance protects you if you lose business checks or cash from fire damage or from an unexpected natural disaster such as a tropical storm or hurricane.
Liquor Liability Coverage -- If your motel serves alcohol beverages of any kind, you may want to consider obtaining liquor liability insurance. This coverage protects your motel in the event that a motel guest or motel visitor drinks on your premises and then causes damage or injury to property or to a person as a direct result of the liquor he consumed at your motel. If, for example, someone drank at your motel bar, then got into a car and caused an accident due to his intoxication, the people who suffered injuries in that accident could sue your motel. With liquor liability coverage in force, your legal fees, court fees and even a judgement that goes against you would be covered by the policy. And while local council laws require your motel to carry general liability insurance, most Territories don't require you to have specific liquor liability coverage, but this insurance could mean the difference between the survival of your motel and its dissolution.