A boutique hotel is a small hotel which typically has between ten and hundred rooms in unique settings with upscale accommodation and individualised uniqueness. Many boutique hotels are furnished in a themed, stylish and aspirational manner.
True to its name, a boutique hotel is one with style, beautiful design, intimate service and a local personality. These establishments are designed to fit in with the community in which they are located and often reflect the cultures and neighbourhoods around them.
The type of traveller that enjoys staying at boutique hotels is not defined by their age, but more by their attitude towards life. According to a survey by the Curio Collection by Hilton, 91% of guests who adore the boutique hotel experience said they are curious humans who seek unexpected and authentic experiences, which are often found at one of these properties.
As the owner of one of these unique accommodation establishments, you want to protect your “work of art” against eventualities that are unique to the hospitality industry and make sure the doors stay open. These events include business interruption, bilking, damage to chilled refrigerated stock, breakage of glass and sanitary wear, and food poisoning.
Says Juan Coetzee, managing director of Hospitality and Leisure Underwriting Manager, “Cover for all the above events are essential, but I would like to highlight four areas of cover that are often overlooked for boutique hotels.”
According to Coetzee, owners of boutique hotels should consider the following insurance cover for their establishment:
- Contents cover: Boutique hotels often boast beautiful artworks from local artists, which is part of the appeal. Whether these are paintings, sculptures, unique pieces of furniture, arty light fittings and lamps, or linen and bedding. Make sure you cover these items for the correct value.
- Guests’ effects: The typical guest staying at a boutique hotel is curious and adventurous. They are likely to own expensive electronic equipment and cameras, and could even bring their bicycle on holiday with them. Ensure that you have adequate cover for personal belongings of travellers should the unforeseen happen.
- Cancellation of bookings: Life happens and guests may be forced to cancel their booking leaving you in a tight spot. You can take out cover against this eventuality.
- External signs: A sign speaks a thousand words. If yours gets damaged, you want it replaced as soon as possible so that people can find their way to your hotel. But these things are often expensive to fix or replace. You can take out insurance against damage to external signs, blinds and canopies, even if they are not on your premises.
H&L offers bespoke insurance cover for boutique hotels and other businesses in the hospitality and leisure industry. Ask your broker to call us today for a competitive quote.