Innkeepers is an old-fashioned term for operations that provide accommodations to guests as a business. In contemporary terms, they are hotels, motels, B&Bs. In addition to the need for General Liability coverage, innkeepers need a particular coverage called Innkeepers Legal Liability, informally called Innkeepers Liability.

Innkeepers have a higher duty of care to guests, including for guests’ property. This includes luggage, clothing, cash, jewelry, etc. If a hotel burns down, will guests be compensated for their property losses? One study found the average cost of a claim for a guest’s property is $1,600. Multiply that by 100 rooms or more, and it is a significant loss.

The duty of care and limitations on liability vary significantly by state. Some states require the guest to prove negligence by the innkeeper, other states require only proof of stay at the time of loss. Some states limit the liability to some number such as $1,000; other states allow liability limitation only with notice to the guest; other states have no limitation. This is one reason you see signs at hotels notifying guests to place valuable property in the safe.

Coverage can be provided for guest property by an endorsement to the GL policy. Typical premium is a few hundred dollars. It will provide a limit for each guest, often $500 to $2,000, with an aggregate limit for all guests. The coverage will likely exclude vehicles. This endorsement should be offered to all Innkeeping clients.