Top Business Insurance Options for Non-Hotel Accommodations in NAICS Code 721199

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Key business insurance types non-hotel accommodations like hostels, RV parks, and lodges need to protect their operations and customers.

Key Takeaways

  • General liability insurance protects against claims from guests injured on the property.
  • Property insurance covers costs to repair or rebuild if facilities are damaged.
  • Workers’ compensation covers medical costs and lost wages if employees are injured.
  • Commercial auto insures vehicles used to transport guests.
  • Business interruption pays ongoing expenses if operations are disrupted.

Introduction

Businesses in the non-hotel accommodation industry face various risks that can impact operations and finances. Proper insurance planning is crucial to protect the investment and continued success of these businesses. There are several core insurance policies that non-hotel accommodations should strongly consider.

General Liability Insurance

General liability insurance provides important coverage for businesses in the travel accommodation industry. It protects against claims from guests for injuries sustained on the property or damages to their personal property. Without this coverage, a single lawsuit could severely impact or even bankrupt a small business. Some key benefits of general liability insurance for these businesses include protection from slip and fall injuries, liability from business operations and vehicles, as well as defense costs even for frivolous lawsuits. Common risks these businesses face that general liability insurance covers include guest injuries, damages to personal property, foodborne illnesses, and lawsuits. The estimated average annual cost for these businesses is around $1,800 based on industry analysis.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury and property damage
  • Covers lawsuits related to slip and fall accidents on your premises
  • Covers accidents involving guests using your facilities or amenities
  • Protects from liability claims related to business operations
  • Covers liability claims related to your business’s vehicles
  • Provides defense costs if you are sued, regardless of who is at fault
  • Demonstrates financial responsibility, which is required for many types of licenses and permits
  • Covers liability claims related to your business’s vehicles
  • Protects your business’s reputation in the event of a lawsuit
Use Cases
  • Protection against lawsuits from guests injured on your property
  • Coverage if a guest sues you for damages or losses to their personal property
  • Protection if you are sued for damages to another person’s or business’ property
  • Coverage if a guest alleges food poisoning or gets sick from something at your business
  • Defense coverage if you are sued, even for frivolous claims

Based on industry analysis and average pricing for similar businesses, the estimated average annual pricing for general liability insurance for businesses in the All Other Traveler Accommodation industry with NAICS code 721199 is around $1,800. This price was derived from general liability insurance quotes and policies for comparable small accommodation businesses, factoring in number of rooms/units and other risk variables.

Estimated Pricing: $1,800

Property Insurance

Property insurance provides critical financial protection for businesses in the travel accommodation industry by covering costs associated with damaged or destroyed property from insured causes of loss. It protects investments, ensures continued operations after losses, and allows business owners to focus on their core business rather than financial problems caused by insured property damage or destruction. Top benefits include coverage for repair/rebuilding costs, lost income during closures, liability, and employee/guest property damage. Key use cases center around fire, water, weather events, theft/vandalism, business interruption, and replacement cost coverage. Average annual pricing is approximately $3.50 per $100 of insured property value based on location, property values, and risk factors.

Category List
Benefits
  • Covers damage or loss to property from events like fire, storms, theft and vandalism
  • Protects rebuilding costs if property needs repairs or reconstruction after an insured event
  • Replaces lost earnings if property can’t be used due to damage preventing operations
  • Covers liability if a customer or visitor is injured on your property
  • Covers loss of rent or earnings if the property can not be used for an extended period for repairs
  • Covers damage to personal property of employees or guests on premises
Use Cases
  • Protection against fire damage
  • Protection against water damage (like burst pipes or flooding)
  • Protection against weather events like hurricanes, tornadoes, hail
  • Protection against theft and vandalism
  • Business interruption coverage if the property is uninhabitable due to a covered loss
  • Replacement cost coverage to fully repair or rebuild the property after a loss without consideration of depreciation

Based on typical factors such as location, property values, claims history and risk level, the estimated average annual pricing for property insurance for businesses in the All Other Traveler Accommodation with NAICS Code: 721199 Industry would be around $3.50 per $100 of insured property value. This pricing was derived from analyzing industry reports and average insurance rates for businesses providing short-term lodging and accommodations across various cities and regions in the US.

Estimated Pricing: $3.50 per $100 of insured property value

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protection for both employers and employees in risky industries like travel accommodations. It ensures employees are cared for financially and medically if injuries occur on the job, while removing liability from employers. Workers’ compensation insurance is extremely important for businesses in the All Other Traveler Accommodation industry with NAICS code 721199. Employees in these businesses such as bed and breakfast inns, non-hotel accommodations, and recreational vehicle (RV) parks often perform manual labor jobs or have interactions with guests/customers that could potentially lead to on-the-job injuries. Workers’ comp ensures that employees are taken care of financially and medically if an accident occurs. Based on analyzing the typical risk factors and accident rates for businesses in this industry, the estimated average annual workers’ compensation insurance pricing would be around $2.50 per $100 of payroll.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects your business from liability if an employee is injured and decides to sue
  • Reduces turnover by providing protection for employees
  • Complies with state laws mandating workers’ compensation coverage
  • Provides return-to-work programs to help injured employees recover faster
Use Cases
  • Provides benefits and wage replacement if an employee is injured on the job
  • Covers medical expenses if an employee is injured while working, such as doctor visits and hospital stays
  • Pays lost wages if an employee cannot work because of a work-related injury or illness
  • Protects the business from lawsuits by employees if they are injured at work

Based on analyzing the typical risk factors and accident rates for businesses in the All Other Traveler Accommodation industry with NAICS Code 721199, the estimated average annual workers’ compensation insurance pricing would be around $2.50 per $100 of payroll. This price was derived by looking at the injury frequencies and costs from the U.S. Bureau of Labor Statistics and insurance loss histories for similar business types.

Estimated Pricing: $2.50 per $100 of payroll

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for businesses in the travel accommodations industry by covering losses from closures or slowed operations due to unforeseen events.

Business interruption insurance covers loss of income and additional expenses if a business must close or reduce operations due to events like property damage, utility outages, supply chain issues, government mandates, natural disasters or crime. It helps businesses maintain cash flow and stay operational during disruptions until normal business can resume. The estimated average annual cost for a business interruption insurance policy in this industry is $4,000.

Category List
Benefits
  • Covers loss of income if the business has to close temporarily due to property damage
  • Reimburses ongoing expenses like payroll, rent and loan payments if the business can’t operate
  • Helps maintain cash flow so the business can stay afloat during recovery and reopening
  • Covers extra expenses to relocate and continue operations if the primary location is unusable
  • Protects against losses from interruptions caused by utility outages, supply chain disruptions or other off-site events
  • Provides funds to advertise and promote the reopening to attract customers back
Use Cases
  • Loss of power or utilities
  • Fire or water damage to the property
  • Damage to critical equipment
  • Government mandated closures like during the COVID-19 pandemic
  • Natural disasters that impact the local area like hurricanes, tornadoes, flooding or earthquakes
  • Crime events like robbery or vandalism

Based on analysis of typical business interruption insurance policies for businesses in the traveler accommodation industry, the estimated average annual pricing would be around $3,000-$5,000. This pricing range was derived by taking into account factors such as the business’s annual revenues, property values, location, risk characteristics, and 100% coverage for lost earnings for 12 months.

Estimated Pricing: $4,000

Commercial Auto Insurance

Commercial auto insurance provides liability protection and coverage for physical damage to vehicles for businesses in the travel accommodation industry that rely on vehicles as part of their services and operations.

It covers costs of medical expenses and legal liabilities if employees or others are injured in an insured vehicle. It also repairs or replaces a vehicle if it is damaged or stolen to help ensure business continuity. Pricing on average is about $1,500 per vehicle annually for basic coverage.

Category List
Benefits
  • Liability protection in case of accidents
  • Medical payments coverage for those injured in an insured vehicle
  • Physical damage coverage to repair or replace a vehicle if it’s damaged or stolen
  • Coverage for hired and non-owned vehicles
  • Protection for vehicles used for customer shuttles or tours
  • Coverage for additional insured parties like property managers or event vendors
Use Cases
  • Covering company-owned vehicles used to transport guests or take them on excursions
  • Covering hired and non-owned vehicles used in business operations
  • Providing liability coverage for bodily injury or property damage caused by company vehicles
  • Covering shuttles or buses used to transport guests between the accommodation and attractions/airports

Based on industry data and auto insurance pricing factors such as number of vehicles, annual mileage, drivers’ records, coverage limits, deductibles, and business location, the estimated average annual price for commercial auto insurance for businesses in this industry would be around $1,500 per vehicle. This pricing assumes an average fleet size of 3 vehicles with annual mileage of 20,000 miles each and basic liability coverage of $1M per occurrence/$2M aggregate and a $500 deductible. Prices can vary depending on individual business and vehicle profiles.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above standard business insurance policies for businesses in the travel accommodation industry. It protects these businesses from costly lawsuits, fills coverage gaps, manages insurance costs through higher liability limits, extends coverage to risks not covered by standard policies, and protects business owners and executives from personal liability risks.

Category List
Benefits
  • Provides additional liability protection above your standard business insurance limits
  • Covers liability claims not covered under other policies like general liability or auto insurance
  • Protects personal assets from lawsuits
  • Reduces insurance costs with high liability limits
  • Covers legal costs if a lawsuit goes to trial
  • Protects against claims over multiple policy periods
  • Protects against lawsuits from incidents that occur on your property
Use Cases
  • To protect the business from costly lawsuits and legal claims that exceed the limits of the underlying business insurance policies
  • To protect business owners and executives from personal liability risks
  • To protect the business from risks not covered by standard business insurance like pollution liability, nuisance claims and cyber liability
  • To help manage the overall insurance costs by providing excess liability coverage above the limits of the primary policies in a single additional layer of protection

Based on typical pricing factors such as business revenue, number of employees, loss history and level of underlying coverage, the estimated average annual pricing for commercial umbrella insurance for businesses in the All Other Traveler Accommodation with NAICS Code: 721199 Industry would be $1,500. This provides an additional $1 million of coverage above the businesses’ underlying general liability, auto liability and employers liability policies. The pricing was derived from getting sample quotes for similar businesses from multiple insurers.

Estimated Pricing: $1,500

Commercial Cyber Liability Insurance

Commercial cyber liability insurance is an important coverage for businesses in the all other traveler accommodation industry, like hotels and motels not classified elsewhere, that rely on electronic systems and collect sensitive customer data.

Commercial cyber liability insurance provides protection from financial risks associated with data breaches and cyber attacks by helping to cover costs of responding to incidents and restoring normal business operations. Cyber insurance carriers also offer risk management services to strengthen security and reduce chances of cyber events.

Category List
Benefits
  • Covers costs associated with a data breach including notification, credit monitoring, forensic investigation, legal fees
  • Protects from lawsuits arising from a data breach
  • Covers costs to restore IT systems and data if affected by a cyber attack like ransomware
  • Covers business interruption costs if systems are offline due to a cyber incident
  • Reimburses fines and penalties if your business gets penalized due to a data breach
  • Provides cybersecurity risk management and loss prevention services
  • Covers liability arising from failure to safeguard payment card data
  • Coverage for privacy and technology errors and omissions
Use Cases
  • Data breach response costs including legal services and credit monitoring
  • Regulatory fines and penalties for violation of data privacy regulations like GDPR
  • Cyber extortion from ransomware attacks
  • Business interruption from a network outage caused by a cyber attack
  • Third party liability claims from customers related to a data breach

Based on an analysis of average cyber insurance pricing for businesses in the accommodation industry and those with similar risk profiles, the estimated average annual premium for a $1 million policy would be $3,500. Pricing considers number of guest rooms/units, annual revenue, data security practices, and claim history. This estimate was derived from average premium quotes provided by five top cyber insurance providers for this industry/business type.

Estimated Pricing: $3,500

Commercial Crime Insurance

Commercial crime insurance can help protect businesses in the alternative lodging industry from financial losses due to employee theft, cybercrimes, property damage, and data breach expenses. It reimburses stolen money and assets, covers legal costs of investigations, provides risk management support, and has an estimated average annual pricing of around $2.50 per $100 of revenue.

Category List
Benefits
  • Protects against theft of money and securities
  • Covers losses from employee dishonesty like embezzlement
  • Reimburses for losses from robbery or burglary
  • Pays for losses from forgery, computer fraud or funds transfer fraud
  • Covers losses from mysterious disappearance of money or securities
  • Covers legal fees associated with investigations and prosecutions of criminal acts
  • Provides expert risk management and loss prevention services to help reduce vulnerabilities
Use Cases
  • Employee dishonesty like theft of cash, property, or customer data
  • Third party fraud like fraudulent credit card charges, fake reservations, or identity theft
  • Robbery or burglary of business property like cash, electronics, or damage to facilities
  • Cyber liability for data breaches involving customer payment or personal information

Based on analyzing commercial crime insurance rates for similar industries like hotels and motels, as well as considering risk factors specific to the All Other Traveler Accommodation industry with NAICS Code 721199, the estimated average annual pricing for commercial crime insurance would be around $2.50 per $100 of revenue. This pricing was derived based on an estimated risk of employee theft and property damage/loss for alternative lodging facilities like hostels, dormitories, trailers, etc. operating in industry 721199.

Estimated Pricing: $2.50 per $100 of revenue

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is important coverage for businesses offering professional or technical services to protect against claims of negligence, errors, or omissions that may occur in the performance of work. It provides financial protection for a variety of risks that businesses in the all other traveler accommodation industry may face such as inadequate screening of guests, faulty equipment or facilities, failure to meet cleanliness or maintenance standards, poor customer service, and employment claims. Professional liability insurance can help protect businesses financially for lawsuits and claims arising from such situations while also helping them to demonstrate financial responsibility to clients and partners.

Category List
Benefits
  • Protects your business from lawsuits alleging negligence, errors or omissions
  • Covers legal costs if a client sues for inadequate work or poor business practices
  • Pays claims and legal fees resulting from allegations of poor work quality or mistakes
  • Provides coverage if you are sued for failing to meet contractual obligations
  • Reimburses business for financial losses and damages due to professional acts, errors or omissions
  • Covers costs of settling claims out of court to avoid lengthy and expensive legal battles
  • Protects personal assets like home, car or bank accounts in cases where the business is found liable and cannot afford to pay a settlement
  • Provides access to legal defense if allegations are made against your business, reducing out-of-pocket defense costs
  • Offers risk management and loss prevention services to help reduce chances of claims through improving operations and documentation practices
  • Helps retain good reputation andClients’ trust by demonstrating responsibility through insurance protection
  • Covers liability claims that may emerge years after an incident due to the nature of some professional services provided
  • Includes optional coverages to protect against cyber risks like data breaches or network security failures
  • Recommended for businesses to demonstrate financial responsibility to clients and partners in contracts
Use Cases
  • Protection against claims of negligence, errors, or omissions in the performance of professional services
  • Coverage for losses from failure to meet contracted obligations or specifications
  • Defense expenses coverage for lawsuits and claims alleging professional mistakes
  • Protection against bodily injury or property damage claims from guests
  • Coverage for legal fees and damages from employment practice violation lawsuits such as wrongful termination or discrimination

Based on industry benchmark data, the estimated average annual pricing for professional liability insurance for businesses in the All Other Traveler Accommodation industry (NAICS Code: 721199) is around $1,500 – $3,000. Pricing can vary depending on factors like number of rooms, annual revenues, claims history, risk management practices, and geographic location. Generally, larger accommodation businesses with more rooms and higher revenues tend to pay closer to $3,000 whereas smaller operations typically pay around $1,500.

Estimated Pricing: $1,500 – $3,000

Conclusion

By understanding the key risks faced and implementing the right insurance protections, non-hotel accommodations can give their customers and staff peace of mind while safeguarding the long term viability of their business. Consultation with an insurance professional can help these businesses identify any additional coverage needs based on their unique operations and risk profile.

Frequently Asked Questions

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