Guest house insurance

Guest house insurance can protect you, your property and your guests from risks that won’t typically be covered by your home insurance policy. Find out more with our guide.

Written by

Emily Kindness

Business insurance expert

Posted

23 SEPTEMBER 2020

3 min read

Guest house insurance

If you’re running a guest house, even a small incident could turn into a large claim. So if you have paying guests in your guest house, you’ll want to make sure you’re covered. That’s why we’ve created this handy guide to help give you the information you need, to help you decide on the right guesthouse insurance. 

Please note, currently you can’t compare quotes for guest house insurance through Compare the Market.

Do I need business insurance if I run a guest house?

Employers’ liability insurance is required by law if you employ even just one person on a part-time or temporary basis. If, for example, you pay someone to come in and clean or help you change the beds and do the laundry between guests.

Other types of insurance aren’t required by law but can protect you if something happens. For example, a guest gets food poisoning or trips over something and sues you for damages. Also, you may want protection against damage, for example, if a guest leaves a bath running and it overflows, damaging flooring and a ceiling below.

What type of insurance do I need for my guest house?

If you’re running a guest house, you'll need to consider insurance cover to protect you, your guests, your property and contents.

Here are a few different types of insurance that you may want to consider, to help protect your guest house and keep it running smoothly.

Public liability insurance: If someone is injured at your guest house or their property is damaged, you can claim on your public liability insurance to cover any compensation due to them, or any legal costs if they take you to court.
Product liability insurance: Product liability covers you for the things you may provide your guests with. It could be the food, it may be the soap or even something on your tea and coffee tray. If your guests become ill because of something you provide, they may be able to make a claim.
Employers' liability insurance: If you employ any members of staff who aren’t direct family, by law you're required to have employers' liability insurance in place. It protects you if an employee is injured or becomes ill as a result of working for you.
Contents insurance: This can cover your possessions such as linens, curtains, furniture and equipment against theft or damage, including accidental damage if you opt for it. For example, a guest accidentally spills coffee or wine over a pale sofa and ruins it.
Buildings insurance: If you own the building where your guest house is located, you'll need buildings insurance. This usually covers the cost of repairs to a building's structure, or even full re-building if needed.

What affects how much guest house insurance costs?

Guest houses and B&Bs can vary in style and each one is individual. The cost of your policy will depend on:

location
the number of rooms
staff you employ
food you offer
whether your premises is licensed or unlicensed
the level and type of cover you want
what add-ons you want to include

Personal factors can be taken into consideration, too. Your premium may also depend on:

the length of time you’ve been running your business
how many properties you own and if you use more than one building to host your guests
your claims history in recent years

What should I consider when choosing a policy?

Make sure your policy or policies offer you the cover you need. Check carefully to see what is included as standard cover and whether you need to consider add-ons. For example, are stock or guest possessions, including their cars, covered as standard? Will food be covered if the freezer breaks down or if there’s a long power cut in your local area? A Deterioration of Stock insurance policy typically also covers any food that is delivered after the incident that you’re unable to store safely.

What kind of additional cover can I get for my guest house?

You might want to consider some optional extras, including:

Business interruption insurance if, for example, a flood means you have to close your business as your property is unlettable
Home emergency-type cover for items like plumbing and boilers
Cover for a swimming pool if you have one
Cash on the premises cover