Insuring your space
Understanding the importance of insurance can bring many benefits when it comes to getting the right cover for you and your space. Knowing what you need and why you need it can be a bit of a minefield, so we have gathered all the information for you. Insurance gives you a safety net and protection against things you’ve probably never considered, like hot tubs, employees, safety and even storms.
A good insurance provider can give you advice about the types of insurance required, discuss your site in detail and assist you in the handling of claims.
You need to ensure that any provider knows as much about your space and site as possible. You must disclose the type of property you have and it’s construction and any activities you are providing to guests.
COVER YOU MUST HAVE:
Employer’s Liability
If you have any paid employees or volunteers (cleaners, maintenance etc) assisting with your site then you must, by law, have Employers Liability, which covers you against claims by your employees/volunteers for injury they have suffered as a result of your negligence.
Public Liability
This covers you against claims by third parties (including your guests) for injury or damage to their property. This is critical cover for all businesses and is a contractual requirement of being listed with Canopy & Stars.
COVER YOU SHOULD HAVE:
Asset Protection
Your space is core to your business and you should protect it against Fire, Flood, Storm, Theft, Malicious Damage and the other standard insurance perils by covering your structures along with the contents and any groundworks in your insurance policy.
Business Interruption
Provides cover for lost rental income in the event your place is destroyed or damaged following a fire, storm, etc and you have to cancel bookings as a result. For instance, a fire at the beginning of the summer season could affect your entire yearly income. Business Interruption insurance covers you should, for instance, frozen pipes or falling trees cause damage to your unit preventing guests from being able to come.
Key Person
Provides cover for accidents to “key persons” within your business and pays out either a weekly benefit or a lump sum in the event you are disabled by an accident and cannot run the Unique Place to Stay as a result. If you are reliant on your income from the Unique Place to Stay, you should consider this cover as it would enable you to hire staff to continue running the place and to cover any additional costs incurred as a result of the accident.
COVER YOU COULD HAVE:
Professional Indemnity
Covers you against claims regarding any advice you provide, as well as any designs, patterns or recommendations you may make which cause financial harm to a third party. This is only relevant if you start providing consultancy on how to set up or run a Unique Place to Stay or designs for building or modifying structures.
Directors & Officers / Trustee Liability
Only relevant if you incorporate as a Limited Company; it covers the Company’s Directors & Officers against claims by stakeholders that they have made an error or omission in their role.
We strongly recommend that as owners, you also get Material Damage/Property cover for your place and you also cover Rental Income - this protects you against fires, storm damage, malicious damage etc and the subsequent lost income as a result.
Most commercial insurance policies exclude theft from units unless they are locked and you can demonstrate 'forcible or violent entry' to or from it. Theft by guests or whilst units are not locked is typically excluded.
Any additional activities may increase the premium, in particular, use of swimming pools, lakes and hot tubs.
Safari Tents must be sited carefully as they appear to be susceptible to storm/high wind damage.
Remember: If something is not stated on the policy, it’s not covered.
