Rest Easy: A Guide to Bed & Breakfast Insurance in Texas

Texas is known for Southern hospitality. The bed & breakfast industry is one way Texans embody a welcoming spirit that makes everyone feel at home in our state. Owning and operating a B&B is more than just providing a cozy room and a delicious breakfast though. It’s a business, and like any business, it faces risks. That’s why having the right insurance coverage is crucial for protecting your investment and ensuring your continued success. At Rollo Insurance, we understand the specific needs of Texas B&B owners and can help you create a comprehensive insurance plan. Our mission is for you to spend less time worrying about insurance and more time helping your guests enjoy their stay at your wonderful bed & breakfast.

What’s keeping bed & breakfast owners up at night?

B&Bs blend the intimacy of a private home with the operational demands of a small business. B&B owners can do it all, but that also increases risk for: 

• Property Damage: B&Bs are often housed in older, historic buildings that your guests love. These buildings are more susceptible to damage from fire, storms, or other perils. Beyond the structure itself, you also need to protect your furnishings, appliances, and guest amenities.
• Liability Claims: Guests can get injured on your property due to slips, falls, or other accidents. You could also be held liable for food poisoning, allergic reactions, or other incidents. Protecting yourself from these potential liabilities is essential.
• Food Service Risks: Preparing and serving food to guests adds another layer of risk. Proper food handling, storage, and preparation are crucial to prevent foodborne illnesses. Having insurance to cover potential food-related incidents is vital.
• Guest Belongings: Guests entrust you with their belongings. Theft, damage, or loss of these items can lead to liability claims and damage your reputation.
• Business Interruption: If a fire, storm, or other event forces you to close your B&B temporarily, you’ll lose income. Business interruption insurance can help cover your lost earnings and ongoing expenses during the downtime before you get back to hosting your guests.
• Personal Liability: In some cases, your personal assets could be at risk if a guest is injured or if a lawsuit is filed against your business. Understanding the implications for personal liability is critical.
• Innkeeper’s Liability: This specialized coverage addresses the unique risks associated with running a B&B, often covering things like loss of guest property, wrongful eviction, and discrimination claims.

You won’t lose sleep with these coverages.

A well-rounded B&B insurance policy should include the following coverages:

• Property Insurance: This covers the physical structure of your B&B, including the building itself, attached structures, and permanent fixtures. 
• General Liability Insurance: This protects you from claims of bodily injury or property damage caused by your business operations. 
• Business Interruption Insurance: If your B&B is forced to close due to a covered event, such as a fire or storm, business interruption insurance will reimburse you for lost income and help cover ongoing expenses like mortgage payments, utilities, and employee salaries.
• Food Liability Insurance: This is essential for B&Bs that serve food. 
• Innkeeper’s Liability Insurance: This specialized coverage is designed for the hospitality industry and addresses risks specific to B&Bs, such as loss of guest property, wrongful eviction, and discrimination claims.
• Cyber Liability Insurance: In today’s digital world, cyberattacks are a growing threat. Cyber liability insurance can protect your business from the financial consequences of a data breach, including notification costs, legal fees, and regulatory fines.
• Workers’ Compensation Insurance: If you have employees, workers’ compensation insurance is typically required by law. It covers medical expenses and lost wages for employees who are injured on the job

B&B vs. Airbnb vs. Hotel: Are they all the same?

While all three offer lodging, their insurance needs differ significantly:

• Airbnb: Airbnb hosts often rely on their homeowners’ insurance, but this may not provide adequate coverage for business activities. Airbnb offers some host liability insurance, but it has limitations. Hosts should consider supplemental insurance to cover gaps in coverage. The level of coverage needed will also depend on if the host is renting out a room in their primary residence, or if they own a separate property used solely as an Airbnb.
• Hotel: Hotels typically have comprehensive commercial insurance policies that cover a wide range of risks, including property damage, liability, business interruption, and workers’ compensation. Their scale of operation and higher volume of guests necessitate more extensive coverage.
• B&B: B&Bs fall somewhere in between. They need more robust coverage than a homeowner renting out a room on Airbnb, but their needs are often different from a large hotel. Their unique blend of residential and commercial aspects requires tailored coverage. Innkeeper’s liability is a key difference between B&B insurance and that of a hotel or Airbnb.

Key Considerations for B&B Insurance

• Occupancy: The number of guests you host and the frequency of bookings will affect your insurance needs.
• Amenities: If you offer amenities like a swimming pool, hot tub, or on-site activities, you’ll need additional coverage.
• Location: The location of your B&B can influence your risk profile. For example, if you’re located in a flood-prone area, you’ll need flood insurance.
• Building Age and Construction: Older buildings may require specialized coverage.
• Food Service: The type of food service you provide will impact your food liability insurance needs.

It’s time to put your insurance worries to rest. 

At Rollo Insurance, we understand the insurance needs of Texas B&B owners. We can help you assess your risks, identify the right coverage, and create a comprehensive insurance plan that fits your budget. Contact us today for a free consultation and let us help you rest easy knowing your B&B is protected.