Top Business Insurances for Bed and Breakfast Inns with NAICS Code 721191

Key Takeaways

Property insurance covers damage to buildings, equipment and loss of income.
General liability insurance protects against lawsuits from guest injuries.
Commercial auto insurance covers owned vehicles used for transportation.
Workers’ compensation covers medical costs and lost wages for employee injuries.
Business interruption insurance replaces lost revenue during closures.
Umbrella insurance provides additional liability coverage above core policies.
Directors and officers protects owners and managers from lawsuits.
Cyber liability covers expenses from data breaches and cyber attacks.

Introduction

As a bed and breakfast inn owner, it is crucial to protect your business from unexpected financial losses through various types of insurance coverage. The top insurances to consider include property, general liability, commercial auto, workers’ compensation, business interruption, umbrella, directors and officers, and cyber liability policies.

Property Insurance

Property insurance provides vital financial protection for businesses in the lodging industry like bed-and-breakfast inns. It protects their property and assets from unforeseen losses to help keep the business running. Some of the key benefits of property insurance for bed-and-breakfast inns include coverage for fire damage, water damage, theft, liability protection for guest injuries, replacement costs if the building is destroyed, and business interruption coverage to continue paying expenses if repairs are needed after a covered loss. The estimated average annual cost of property insurance for a bed-and-breakfast inn is around $1,500.

Category	List
Benefits	Covers damage or loss to buildings and structures Covers damage or loss to business personal property like furniture or equipment Covers loss of income if the business needs to close temporarily for repairs after a covered loss Covers extra expenses to minimize losses from suspension of operations during restoration like finding temporary lodging for guests Provides reimbursement for code upgrades if repairs or rebuilding are required to meet current building codes and regulations Protects the property and assets of the business to keep it running in the event of an insured loss
Use Cases	Protection against fire damage to the property and belongings Coverage for water damage from burst pipes or other malfunctions Reimbursement for theft or vandalism of property Liability protection if a guest is injured on the property Replacement costs if the building is destroyed Business interruption coverage to continue paying expenses if the inn must close for repairs

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Benefits

Covers damage or loss to buildings and structures
Covers damage or loss to business personal property like furniture or equipment
Covers loss of income if the business needs to close temporarily for repairs after a covered loss
Covers extra expenses to minimize losses from suspension of operations during restoration like finding temporary lodging for guests
Provides reimbursement for code upgrades if repairs or rebuilding are required to meet current building codes and regulations
Protects the property and assets of the business to keep it running in the event of an insured loss

Use Cases

Protection against fire damage to the property and belongings
Coverage for water damage from burst pipes or other malfunctions
Reimbursement for theft or vandalism of property
Liability protection if a guest is injured on the property
Replacement costs if the building is destroyed
Business interruption coverage to continue paying expenses if the inn must close for repairs

Based on typical industry factors such as average property values, risks, loss histories, the estimated average annual pricing for property insurance for bed-and-breakfast inns with NAICS code 721191 is around $1,500. This pricing was derived from looking at average property values of around $500,000 and average premium rates of around 0.3% of property value per year.

Estimated Pricing: $1,500

General Liability Insurance

General liability insurance is an important type of coverage for bed and breakfast businesses. It protects the property owners from financial losses due to accidents and injuries that occur on the property or involving guests. General liability insurance helps cover the costs of lawsuits filed against a bed and breakfast business. It protects against claims involving slip and falls, food poisoning, fires, property damage, and more.

Category	List
Benefits	Protects your business from third-party liability claims such as slips and falls or property damage Covers legal fees if you’re sued for damages by a guest Pays for medical expenses if someone is injured on your property Covers liability from accidents involving your employees Covers liability from foodborne illness if a guest gets sick from food served at your B&B Provides coverage if a guest’s personal property is damaged or stolen while at your inn Covers liability from fire damage to guest’s property or surrounding properties
Use Cases	Guest injuries due to slip-and-fall accidents Guest injuries from dangerous property conditions Liability from fires started on the property Liability from vehicle accidents involving guests Liability from food poisoning or other issues from food provided Claims of physical or emotional harm from harassment or discrimination by employees Property damage or bodily injury caused by employees

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Benefits

Protects your business from third-party liability claims such as slips and falls or property damage
Covers legal fees if you’re sued for damages by a guest
Pays for medical expenses if someone is injured on your property
Covers liability from accidents involving your employees
Covers liability from foodborne illness if a guest gets sick from food served at your B&B
Provides coverage if a guest’s personal property is damaged or stolen while at your inn
Covers liability from fire damage to guest’s property or surrounding properties

Use Cases

Guest injuries due to slip-and-fall accidents
Guest injuries from dangerous property conditions
Liability from fires started on the property
Liability from vehicle accidents involving guests
Liability from food poisoning or other issues from food provided
Claims of physical or emotional harm from harassment or discrimination by employees
Property damage or bodily injury caused by employees

For bed-and-breakfast inns with NAICS code 721191, the estimated average annual pricing for general liability insurance is around $1,000 – $2,000. The pricing is usually determined based on number of rooms, claims history, safety measures in place, and location. On average, bed-and-breakfast inns with 5 rooms or less and no major claims would expect to pay around $1,000 – $1,500 annually.

Estimated Pricing: $1,000 – $1,500

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage protection for bed-and-breakfast businesses that utilize vehicles as part of their operations. It can help cover costs associated with transporting guests or damages to owned vehicles.

Category	List
Benefits	Liability protection in case of accidents involving business vehicles Coverage for business vehicles like vans used to transport guests Replacement or repair costs if a vehicle is damaged Coverage for employee’s personal vehicles if used for business purposes Protection against uninsured drivers Coverage for medical payments for those injured in an accident regardless of fault
Use Cases	Liability coverage for owned vehicles used to transport guests Coverage for employee’s personal vehicles used for business purposes Collision coverage for owned vehicles involved in at-fault accidents Comprehensive coverage for owned vehicles damaged by events like fire or falling objects

Based on research of average commercial auto insurance rates for businesses in the Bed-and-Breakfast Inns industry (NAICS 721191), the estimated annual price would be around $1,200. This pricing is calculated based on factors like number of vehicles (typically 1-3 vehicles such as vans or SUVs used to shuttle guests), driver qualifications, safety records, business location and risk level.

Estimated Pricing: $1,200

Workers’ Compensation Insurance

“Workers’ compensation insurance provides important protections for both employees and businesses in the bed-and-breakfast industry. It helps ensure employees are supported if injured on the job while working and encourages safety. The top benefits include medical benefits for injuries, lost wages coverage, liability protection for businesses, and affordable premiums. Common use cases involving injuries from activities like cleaning, cooking, lifting luggage, and outdoor activities are covered. For a typical bed-and-breakfast business, estimated annual premiums are around $1,500.”

Category	List
Benefits	Provides medical benefits to employees injured on the job Covers lost wages for injured employees Protects the business from lawsuits related to on-the-job injuries Affordable premiums compared to costs of lawsuits or uninsured claims Promotes a safer work environment through safety programs and incentives Peace of mind knowing employees are protected from financial hardship if injured
Use Cases	To cover costs if an employee is injured while cleaning rooms, cooking in the kitchen, carrying luggage, etc. To cover costs if an employee injures themselves while assisting guests with activities like hiking, biking, etc. To cover costs if an employee sprains an ankle or slips on a wet floor while working. To cover costs if an employee is unable to work for an extended period due to a work-related injury.

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Benefits

Provides medical benefits to employees injured on the job
Covers lost wages for injured employees
Protects the business from lawsuits related to on-the-job injuries
Affordable premiums compared to costs of lawsuits or uninsured claims
Promotes a safer work environment through safety programs and incentives
Peace of mind knowing employees are protected from financial hardship if injured

Use Cases

To cover costs if an employee is injured while cleaning rooms, cooking in the kitchen, carrying luggage, etc.
To cover costs if an employee injures themselves while assisting guests with activities like hiking, biking, etc.
To cover costs if an employee sprains an ankle or slips on a wet floor while working.
To cover costs if an employee is unable to work for an extended period due to a work-related injury.

Based on average risk factors and published rates for the Bed-and-Breakfast industry (NAICS 721191), the estimated average annual pricing for workers’ compensation insurance would be around $1,500 per year. This estimate was derived from considering typical employee headcounts, payroll amounts, claims histories, and risk factor adjustments that are used in the standard workers’ compensation insurance pricing formulas for this industry.

Estimated Pricing: $1,500

Business Interruption Insurance

“Business interruption insurance is a crucial type of coverage for bed-and-breakfast inns to protect their revenue and cash flow in the event they need to temporarily close operations due to unforeseen events like property damage, loss of utilities, or other circumstances outside of their control.”

Category	List
Benefits	Covers lost profits if your business is forced to temporarily close due to fire, flooding or other property damage Reimburses ongoing expenses like payroll, rent and utilities if you cannot operate Provides money to rebuild or repair your property after a disaster so you can reopen faster Helps stabilize cashflow during recovery so you can focus on getting your business running again
Use Cases	Loss of revenue if the business has to temporarily shut down due to fire, flooding or other damage to the property Loss of revenue if the business has to temporarily shut down due to loss of utilities like power or water Loss of revenue if the business has to temporarily shut down due to issues like coronavirus pandemic

Based on typical industry factors such as average revenue, profit margins, fixed costs, risk factors etc., business interruption insurance for bed-and-breakfast inns with NAICS code 721191 would be priced at around 1.5-2% of total annual revenues. Most bed-and-breakfast inns have annual revenues between $100,000-$300,000. So the estimated pricing would be $1,500-$6,000 per year.

Estimated Pricing: $1,500-6,000 per year

Umbrella Insurance

“Umbrella insurance provides an additional layer of liability protection for bed-and-breakfast businesses. It covers claims above the limits of the business’s underlying policies and protects owners’ personal assets from lawsuits. Umbrella insurance is also important for B&Bs due to the risks of guest injuries on the premises or during activities, as well as risks of vehicle-related incidents while transporting guests. Umbrella policies are especially valuable for covering risks involving guest injuries, vehicle accidents, and discrimination claims.”

Category	List
Benefits	Provides additional liability coverage above your standard business insurance limits Covers claims not covered by your underlying general and auto liability policies Protects personal assets from lawsuits Provides access to defense costs beyond your liability limits Covers incidents involving hired/non-owned autos Protects against defamation, invasion of privacy, and wrongful eviction claims Covers liability claims arising from owning or maintaining a swimming pool or hot tub Provides crisis management services in the event of incidents covered under the policy Protects against claims arising from serving alcohol to guests Covers Bodily Injury and Property Damage claims beyond your underlying limits Covers incidents involving leased or rented commercial space
Use Cases	Protection against lawsuits from guest injuries on property Protection against lawsuits from accidents during activities provided (e.g. hiking trips) Protection against lawsuits from vehicle accidents while transporting guests Protection against lawsuits from sexual harassment or discrimination claims from employees or guests

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Benefits

Provides additional liability coverage above your standard business insurance limits
Covers claims not covered by your underlying general and auto liability policies
Protects personal assets from lawsuits
Provides access to defense costs beyond your liability limits
Covers incidents involving hired/non-owned autos
Protects against defamation, invasion of privacy, and wrongful eviction claims
Covers liability claims arising from owning or maintaining a swimming pool or hot tub
Provides crisis management services in the event of incidents covered under the policy
Protects against claims arising from serving alcohol to guests
Covers Bodily Injury and Property Damage claims beyond your underlying limits
Covers incidents involving leased or rented commercial space

Use Cases

Protection against lawsuits from guest injuries on property
Protection against lawsuits from accidents during activities provided (e.g. hiking trips)
Protection against lawsuits from vehicle accidents while transporting guests
Protection against lawsuits from sexual harassment or discrimination claims from employees or guests

Based on the typical risks and claims data for bed-and-breakfast inns, the estimated average annual pricing for an umbrella insurance policy with $1 million coverage would be around $600-$800. This pricing is derived based on the small size of most bed-and-breakfast businesses, low property values, relatively small number of customers, and few if any employees. The risks of significant liability claims are less than for other types of businesses.

Estimated Pricing: $600-$800

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, provides important protection to business owners and managers of bed-and-breakfast inns against lawsuits arising from their duties performed for the business. It protects their personal assets and reimburses legal costs. D&O insurance is especially important for bed-and-breakfast inns due to regulatory oversight from agencies regarding food safety, building codes, and other regulations. Claims could arise from issues related to these areas. D&O insurance coverage can range from $1,500-$3,000 annually on average for small bed-and-breakfast inns based on typical pricing factors.

Category	List
Benefits	Protects personal assets of directors and officers Covers legal fees if a lawsuit is filed against your business Covers defense costs even if claims are proven false or frivolous Pays settlements or court-ordered judgments for covered claims Provides access to qualified legal counsel for defense Covers claims arising from errors/omissions Attracts qualified individuals to serve on the board of directors Promotes peace of mind for directors and officers
Use Cases	Protection against shareholder lawsuits alleging mismanagement Protection against third-party lawsuits alleging negligent acts by directors and officers Reimbursement of legal defense costs if directors and officers are sued Coverage for employment-related claims like wrongful termination or discrimination Protection against regulatory actions from agencies like local health departments

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Benefits

Protects personal assets of directors and officers
Covers legal fees if a lawsuit is filed against your business
Covers defense costs even if claims are proven false or frivolous
Pays settlements or court-ordered judgments for covered claims
Provides access to qualified legal counsel for defense
Covers claims arising from errors/omissions
Attracts qualified individuals to serve on the board of directors
Promotes peace of mind for directors and officers

Use Cases

Protection against shareholder lawsuits alleging mismanagement
Protection against third-party lawsuits alleging negligent acts by directors and officers
Reimbursement of legal defense costs if directors and officers are sued
Coverage for employment-related claims like wrongful termination or discrimination
Protection against regulatory actions from agencies like local health departments

Based on typical pricing factors such as annual revenue, number of employees/directors, loss history and coverage limits, the average annual cost for Directors And Officers Insurance for a small Bed-and-Breakfast Inn with less than 10 employees and annual revenue under $1 million would be around $1,500-$3,000.

Estimated Pricing: $1,500-$3,000

Cyber Liability Insurance

Intro paragraph: As bed-and-breakfast inns conduct financial transactions online and keep guest records, they face risks of cybercrime like ransomware, hacks, and data theft. Cyber liability insurance can help cover costs from these threats. It is an important risk management tool for this industry given the sensitivity of the information bed-and-breakfast inns collect and store.

Category	List
Benefits	Covers lawsuits and claims resulting from a data breach Reimburses costs associated with a cyber attack like forensic investigation, legal support, customer notifications Pays for public relations support to manage reputational damage from a breach Covers costs to notify clients of a breach as required by state laws Covers theft of business information and funds through online means Covers losses from business interruption if systems are compromised in an attack Provides access to risk management resources and training to help prevent breaches Protects against phishing and social engineering attempts targeting employees Covers losses from business interruption if systems are compromised in an attack
Use Cases	Data breach involving customer payment card or personal information Network security failure leading to system downtime Ransomware or malware infection blocking access to business systems Accidental loss or theft of customer devices containing private data Website or email hacked to distribute malicious content Cyber extortion or blackmail attempts demanding a ransom to prevent information disclosure

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Benefits

Covers lawsuits and claims resulting from a data breach
Reimburses costs associated with a cyber attack like forensic investigation, legal support, customer notifications
Pays for public relations support to manage reputational damage from a breach
Covers costs to notify clients of a breach as required by state laws
Covers theft of business information and funds through online means
Covers losses from business interruption if systems are compromised in an attack
Provides access to risk management resources and training to help prevent breaches
Protects against phishing and social engineering attempts targeting employees
Covers losses from business interruption if systems are compromised in an attack

Use Cases

Data breach involving customer payment card or personal information
Network security failure leading to system downtime
Ransomware or malware infection blocking access to business systems
Accidental loss or theft of customer devices containing private data
Website or email hacked to distribute malicious content
Cyber extortion or blackmail attempts demanding a ransom to prevent information disclosure

Based on typical pricing models, cyber liability insurance for bed-and-breakfast inns with NAICS code 721191 would be approximately $1,000-$2,000 per year. Pricing is usually determined based on number of rooms, annual revenue, IT security practices and history of data breaches or cyber incidents. For a small bed-and-breakfast inn with less than 10 rooms and under $500k in annual revenue, an average annual premium would be around $1,500.

Estimated Pricing: $1,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) helps protect small bed-and-breakfast inn businesses from expensive lawsuits filed by current and former employees related to wrongful termination, discrimination, harassment and other employment claims. EPLI covers defense costs, settlements and damages to protect business owners financially while also providing risk management services to help prevent claims. Common EPLI claims for B&Bs involve wrongful termination, discrimination, harassment, failure to accommodate, unpaid wages and whistleblower retaliation. The estimated average annual EPLI premium for B&Bs is around $1,000 based on average numbers of employees and payroll amounts.

Category	List
Benefits	Covers costs associated with defending wrongful termination, sexual harassment, and discrimination claims Covers costs of mediation, arbitration and settlements for covered claims Covers punitive damages awarded from covered claims Covers legal fees for covered claims Provides access to free risk management and human resource support services to help prevent claims Protects personal assets of business owners from claims that exceed policy limits Reduces stress of business owners knowing they have protection from expensive employee lawsuits
Use Cases	Wrongful termination lawsuits Discrimination or harassment claims Violation of privacy or civil rights Failure to promote or demote appropriately Issues regarding unpaid wages, overtime pay or other compensation Complaints over lack of accommodation for disabilities or religious beliefs Whistleblower or retaliation claims

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Benefits

Covers costs associated with defending wrongful termination, sexual harassment, and discrimination claims
Covers costs of mediation, arbitration and settlements for covered claims
Covers punitive damages awarded from covered claims
Covers legal fees for covered claims
Provides access to free risk management and human resource support services to help prevent claims
Protects personal assets of business owners from claims that exceed policy limits
Reduces stress of business owners knowing they have protection from expensive employee lawsuits

Use Cases

Wrongful termination lawsuits
Discrimination or harassment claims
Violation of privacy or civil rights
Failure to promote or demote appropriately
Issues regarding unpaid wages, overtime pay or other compensation
Complaints over lack of accommodation for disabilities or religious beliefs
Whistleblower or retaliation claims

Based on typical risk factors for the NAICS Code 721191 industry of Bed-and-Breakfast Inns, the estimated average annual premium for Employment Practices Liability Insurance would be around $1,000. This pricing is calculated based on average numbers of employees (usually 5-10) at these small businesses and average payroll amounts. It also takes into account the moderate risks of discrimination, harassment, wrongful termination lawsuits that are common for this industry given its customer service nature.

Estimated Pricing: $1,000

Conclusion

Comprehensive business insurance tailored to the specific risks of operating a bed and breakfast inn can help your business stay financially stable even after unforeseen disasters, accidents, or lawsuits. Taking the time to understand your risk exposure and purchasing the appropriate types and levels of coverage will give you peace of mind to focus on serving your guests.

Frequently Asked Questions

what types of business insurance are required for bed and breakfast inns?

some of the key types of business insurance required or highly recommended for bed and breakfast inns include: property insurance, general liability insurance, commercial auto insurance, workers’ compensation insurance, business interruption insurance, umbrella insurance, directors and officers insurance, and cyber liability insurance.

do i need commercial auto insurance if i don’t own any vehicles?

even if you don’t own any vehicles, you may still need commercial auto insurance if employees use their personal vehicles for business purposes like transporting guests. commercial auto insurance can provide liability coverage for incidents involving employees driving their own cars for work.

how much will my business insurance cost?

business insurance costs can vary depending on your location, number of rooms, claims history, risk factors, and other details. on average, annual premiums are estimated to be around $1,500-2,000 for property insurance, $1,000-2,000 for general liability, $1,200 for commercial auto, $1,500 for workers’ compensation, $1,500-6,000 for business interruption, $600-800 for umbrella, and $1,500-3,000 for directors and officers insurance based on typical industry data.

are there any discounts available for having multiple insurance policies?

yes, many insurers offer discounts when you purchase multiple types of business insurance policies through them in a bundled package. this is known as a multiple policy discount or package discount. bundling policies can save you 5-10% overall on your annual business insurance costs.

what does commercial property insurance cover?

commercial property insurance protects the physical structures, equipment and other assets of your business. it covers costs to repair or rebuild properties damaged by events like fire, storms or water damage. it also provides coverage for lost business income if your operations are temporarily shut down due to a covered property loss.

how long does it take for business insurance policies to take effect?

most business insurance policies have an effective date that is the same as the date you purchase the policy or sometimes a few days later. however, there is usually a 30-day waiting period before certain coverage types like business interruption insurance would kick in after a loss occurs. policies may not retroactively cover incidents that happened before the effective date.

Top Business Insurances for Bed and Breakfast Inns with NAICS Code 721191

Key Takeaways

Introduction

Property Insurance

General Liability Insurance

Commercial Auto Insurance

Workers’ Compensation Insurance

Business Interruption Insurance

Umbrella Insurance

Directors And Officers Insurance

Cyber Liability Insurance

Employment Practices Liability Insurance

Conclusion

Frequently Asked Questions

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