bedandbreakfasti

The Best Insurance for B&B

Owning and operating a bed and breakfast (B&B) is a unique business that requires specialized insurance coverage. Unlike traditional homes or businesses, B&Bs have a mix of personal and commercial liabilities that must be protected. If you own a B&B, it’s essential to have the right insurance coverage to ensure your property and business are adequately protected. In this article, we’ll explore the best insurance for B&Bs and why it’s critical to have proper coverage.

The first step in finding the best insurance coverage for your B&B is to work with a reputable insurance broker. A knowledgeable broker will help you identify the unique risks associated with running a B&B and customize your coverage accordingly. One of the most experienced bed and breakfast insurance brokers in the industry is Wister. They pioneered the modern B&B insurance policy, starting with four coverage areas: building(s), contents, income, and liability. They can also help with additional insurance options such as liquor coverage, workers compensation, commercial auto insurance, and more.

At Wister, they understand the value of B&B properties to the industry and the challenges related to insuring them. They will take the time to learn about your specific project and review your current policy to see if it meets your unique needs. Their team of experts will deliver custom comprehensive coverage and service specifically designed to suit your insurance needs.

When you own a B&B, you are opening yourself up to commercial liability claims. According to Wister, the #1 liability exposure in life is driving your car. Still, the #2 liability exposure is when you open your home to guests. This is where specialized B&B insurance comes into play. B&B insurance covers a range of liabilities, including standard slip & fall accidents, drownings, equine and bicycle accidents, invasion of privacy, assault & battery, and more. Wister has over 100 years of personal service and public insurance experience, making them the perfect ally to make sure your B&B insurance is sufficient.

B&B owners often have to manage commercial property insurance and personal policies. However, with Wister, you can manage the protection with one policy. B&B insurance doesn’t fit into one category as guests pose a business risk, while the owners fall under personal risk. With Wister’s coverage, you can have both public liability insurance and personal use of your B&B in one policy.

There are two major insurance forms for B&Bs: exclusion-based insurance and named perils insurance. Many B&B owners are unaware of the difference between the two forms. The special form (all-risk or exclusion-based) covers everything except what is explicitly excluded, while the basic or broad form (named perils) only covers specific perils listed in the policy. With named perils, the insurance contract lists what is covered. Basic named perils cover 11 things, including fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicle collisions, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, or volcanic action. Broad named perils cover everything basic does, but adds four more, including falling objects, the weight of snow/ice/sleet, water damage in the form of leakage, and collapse from specified causes. If your B&B experiences a peril that isn’t named in the policy, there would be no coverage. It’s essential to understand the difference between these two forms to choose the best insurance coverage for your B&B.

Lastly, it’s crucial to choose the right valuation insurance for your B&B. Replacement cost valuation insurance covers “new for old” without calculating depreciation in the event of a loss. For example, if your B&B experiences hail damage to your roof and it needs to be replaced, replacement cost valuation insurance will pay for the full replacement cost of the roof.