Bed and Breakfast Operations

I am planning to operate a Bed and Breakfast in my home this summer. In the midst of all the painting and wallpapering, I began to wonder if I had enough insurance. What would happen if any of the guests injured themselves in my home, or if some of their personal belongings were stolen? Would my insurance cover this?

While you're filling in the cracks in your walls, make sure you plug any gaps in your insurance coverage too!

You will probably need additional liability insurance to protect you if someone injured him or herself on your property and decides to sue you. Although your homeowner's package policy includes liability coverage, it will probably not apply to paying guests, just as it doesn't apply to clients. For example, if you had a home office, you would need special liability insurance to protect you should a visiting client injure themselves. Your insurer may view paying guests in the same way and require you to get the appropriate liability coverage. However, this policy could vary from one insurer to the next, so check with your insurance representative.

Your best bet is to ask your insurance representative what additional coverage, if any, you will need. Then, with your insurance needs looked after, you can spend your summer looking after your guests instead!

As far as stolen belongings, your guests are on their own. Most homeowners policies specifically exclude (do not cover) property belonging to "roomers or boarders". So, if your guest leaves her camera on your front porch and it is stolen, it won't be covered under your insurance policy. The good news is that she should be able to claim for her loss under her own homeowners or tenant's policy.