For more on this part of the insurance industry:
visit our hospitality industry insurance page for a look at all products in this sector
or focus in on all of the insurance products for large-scale accommodation available on IB Markets!
This insurance protects businesses that provide a high number of guest rooms or beds, often catering to large groups or a fast guest turnover. This includes hotels, hostels, resorts and more.
Common incidents covered include:
With so many guests, staff and external factors involved, this coverage is essential to help businesses recover quickly from certain incidents.
In 2024, a fire at a Travelodge hotel in Poole showed how damaging a single incident can be to guest safety and business operations.
With the right hotel insurance, owners can claim for repairs, loss of income and shield themselves against liability claims.
These hazards are common across the large-scale accommodation insurance sector.
Hotels now offer co-working spaces and longer stays, so extended stay insurance is becoming vital. Self-check-in and keyless entry raise demand for guest liability coverage and cyber protection.
Luxury hotels now request tailored cover for spa facilities, fine art and furnishings. Some providers now bundle property and casualty insurance to simplify policies across buildings, contents and liability.
Brokers must assess these emerging threats as well, which include:
rising rebuild costs: repairs after fires or floods often exceed policy limits
unreported property upgrades: missed updates can lead to underinsurance in large property insurance claims
service-related claims: wellness or event issues may trigger public or professional liability cover
Improperly maintained EV chargers in hotel car parks are causing more fire and damage claims. Events like stag weekends often lead to guest injuries or property damage.
Insurance brokers should review hospitality risk insurance needs regularly with clients to keep cover up to date. This helps ensure large-scale accommodation insurance policies reflect real dangers across busy UK sites.
Those who host multiple guests or operate high-turnover lodging need this insurance. Stakeholders include:
Properties requiring high occupancy building insurance are part of this as well. Specialist cover, such as lodging facility insurance, is often needed for such establishments.
The usual coverage options within this insurance package may include:
These coverage options help hospitality businesses stay safeguarded against a wide range of common risks.
The cost depends on the size of the property, number of guests and services offered. Other factors include:
Sites with spas, EV chargers or licensed bars may need extra accommodation business insurance cover.
Holiday parks, retreats and holiday resorts often require specialised resort insurance to reflect guest activity risks.
In UK insurance terms, fitted kitchen units are generally classed as part of the building and covered under buildings insurance.
Freestanding items like fridges or microwaves are considered contents and fall under contents insurance.
For most homes, £50,000 might be enough—but not for larger or high-value properties. In large-scale accommodation insurance, contents like furnishings and equipment often exceed this amount.
Brokers should recommend a full inventory check to avoid underinsurance and claims shortfalls. Consider upgrading to vacation resort coverage or tourism property insurance if the site runs year-round.
Yes, they typically cost more to insure due to higher repair and rebuild expenses. Insurers consider factors like:
For example, homes built before 1950 can have premiums up to 85% higher than newer builds.
Home insurance may cover temporary accommodation if a home becomes unfit to live in due to fire or flood. But it won’t cover guest stays or business use like B&Bs or serviced lets.
In these cases, large-scale accommodation insurance or commercial accommodation insurance is needed to secure against business-related risks.
