Frequently Asked Questions

Our Bed & Breakfast program is unique because it was designed for the specific needs of innkeepers. It combines business insurance with your personal insurance coverage, eliminating the need for two separate policies. Because every inn is unique, our program can be further customized to fit your operations.

The policy would cover antiques at acquisition cost (receipts for antiques showing purchase cost required). If you would like additional coverage we have a Fine Arts Floater available. We would need a professional appraisal verifying the replacement cost.

We automatically include bicycles owned by your bed & breakfast, tennis courts, and swimming pools (locked fences, marked depths, no diving boards or slides, and signs that say no life guard on duty.) Once you list all activities on your questionnaire, we will review it and analyze on a case-by-case basis. For example, if you offer horseback riding, we have additional coverages available so that you are properly protected.

We realize that many of our member inns are very small properties with only two or three rented rooms in what may have formerly been their home. With the limited income potential, commercial insurance may seem like an unnecessary burden on an already stretched too thin budget.
Quite simply, commercial liability is the only way to protect your guests in the event of an accident, and the only for Bed & Breakfast to protect itself against your possible negligence. Home-owners policies carry an exclusionary clause against any “business” that you conduct in your home. Should a guest be injured while at your B&B, the liability insurance associated with your homeowners insurance will not cover them. Even any additional “umbrella policy” that you may carry for additional liability coverage will not cover a business. Should your B&B be protected by a corporate structure, the guest may not even be able to sue or be reimbursed by you personally.

  • We received several inquiries from Innkeeper asking us how their General Liability is calculated on their Innkeepers policy. There are a number of ways to calculate the liability premium that Innkeepers are charged by their insurance carrier. The method that we use is based on the number of rooms, as we feel this is the fairest way since the Innkeeper only has a maximum number of guests that could spend the night at their Inn.
  • This calculation "the number of rooms" is non-auditable by the general liability insurance carrier. It makes no difference on how much revenue you make, per room, our concern is how many people are staying there.
  • The next method that we have seen, by some of our competitors, is a gross receipts basis, where they calculate the liability based on the estimated revenue that the Inn generates. This method is an auditable method, meaning that at the end of the policy period, they will ask you for a statement on your gross receipts and adjust your liability rate accordingly.
  • Using this method generates more premiums for the insurance carriers since the exposure ("number of people") has not changed. If you increase your room charge during the policy period, you can expect an audit form from the insurance company asking you to disclose your room receipts. They will calculate against your original estimate and then send you a bill or a refund for the difference.
  • Also if you engage in other activities or services such as catering, tours, retail sales etc., these activities also have premium costs associated with them.
  • By keeping the room rate constant and non-auditable it makes insurance cost more predictable for the Innkeeper.

The Heritage Bed and Breakfast Insurance Program

An insurance program designed to meets the unique and specific needs of Bed & Breakfast establishments.