How much does hotel insurance cost?
What a hotel or motel pays for insurance is set by its own numbers: rooms, building value, pool, restaurant or bar, payroll, claims history and state, so two hotels with the same room count can pay very different amounts. This page does not give one price; it shows what published figures imply for three sized hotels and what the first quote can leave out. It covers the five core commercial coverages a hotel buys (general liability, commercial property, business income, workers' comp and innkeeper's liability) and liquor liability if you pour, not personal insurance.
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- There is no honest single price for "a hotel." The type of property, building value, pool, bar, payroll, claims and state set the number for each one.
- Three sized profiles are shown below, each resting on a published source, followed by three anonymized accounts that show what a first quote can leave out.
- State matters most through workers' comp: across the eight states we cover, the 2024 Oregon rate study puts workers' comp rate levels between 82% and 182% of the study median.
What do hotels pay?
Here are three hotels, sized by rooms, with what each kind of property carries and what the published figures put the whole program at per year. Each row says which source it rests on. For what each coverage does, see what insurance a hotel needs.
The per-room figures come from a hotel-industry study of what owners spent on insurance in 2022 across a same-store sample of 2,565 properties: $528 per available room at limited-service hotels, $2,464 at resorts and $939 across the whole sample. (Source: CBRE Hotel Research, February 2024) They are all-in spending, and prices have moved since 2022.
| Hotel | Who | What it carries | What it pays a year |
|---|---|---|---|
| A 60-room limited-service hotel | No restaurant or bar, a small breakfast area, a handful of staff. | Liability for guests, property, workers' comp, lost income and coverage for guests' belongings; no liquor, because nothing is poured. | $31.7K a year (60 × $528). Rests on the 2022 limited-service average in the hotel-industry study. |
| A 150-room resort hotel | A pool, a restaurant and bar, events and a seasonal staff. | All five core coverages, plus liquor liability for the bar and a larger lost-income limit for the peak season. | $369.6K a year (150 × $2,464). Rests on the 2022 resort average in the hotel-industry study. |
| A 20-room boutique inn | No restaurant, a small breakfast served to guests, a few staff. | Liability for guests, property, workers' comp and lost income; no liquor, because nothing is poured. | $18.8K a year (20 × $939). The study gives no boutique figure, so this row uses its all-hotel average. |
Built from published sources, with round room counts, not from Anvo accounts. Each row applies a 2022 sample average to a stated room count; the rows are an illustration of scale, not a quote or a range for hotels in general. The inn's row uses the all-hotel average because the study reports none for boutique properties.
Renewals move these figures. A trade-press report citing a brokerage's first-quarter 2026 hospitality market report says liability prices rose 5% to 15% from late 2025 to early 2026 for hotels with a favorable claims record, and 15% to 30% for those without one. On a round $20,000 liability policy, that is $21,000 to $23,000 (up 5% to 15%: $20,000 × 1.05 to $20,000 × 1.15) with a favorable record and $23,000 to $26,000 (up 15% to 30%: $20,000 × 1.15 to $20,000 × 1.30) without one. The same report says umbrella rates rose 10% to 20% and that the group of insurers writing hotels fell from about 25 five years ago to about 10 in 2026. (Source: Hotel Dive, October 2026) Price is not a sign of the right coverage, which is why checking whether your coverage is enough comes before comparing prices.
A lower price is not always the better deal. In each of these three hotels, the first quote was missing something; the table shows what was added and what it did to the price.
| Business | First quote had | Corrected program has | Yearly price |
|---|---|---|---|
| 90-room select-service hotel | Lost income up to $150K, about three months, and nothing after reopening | 18 months of lost income, plus extra months after reopening while bookings recover | Up $3.2K a year, for the longer lost-income cover |
| A second 90-room select-service hotel | Building value about $2.8M too low, no cyber cover, a $3M umbrella | Building at its higher value, $2M of cyber cover, a $5M umbrella | Down $8K ($62K → $54K), after moving to a hotel-focused insurer program whose credits offset the added cover |
| 120-room franchised hotel | A $5M umbrella, no cyber cover, no cover for employee lawsuits | A $10M umbrella, $2M of cyber cover, $1M for employee lawsuits | Up $8.4K a year, for the three additions ($4.2K + $2.8K + $1.4K) |
Illustration only, from rounded figures and anonymized accounts from Anvo's placements, with details generalized. Whether a claim like these is covered depends on the policy wording; it is not a statement of what any policy pays. Ask your agent to show you where each one sits in your own program.
What the gaps could have cost: a four-month closure at the first hotel cost about $280K in lost income, and the $150K limit would have left about $130K with the owner ($280K − $150K). A building insured for less than the property rule requires can see a partial loss paid at a reduced share, and a data breach or a large lawsuit could pass the second hotel's old limits. A large guest claim, a data breach or an employee lawsuit could land on the third owner's own accounts.
What would move this number?
Seven things move a hotel's price. Some you control; the rest you can document.
- Pool and spa — up, and the biggest single liability question. Child pool and spa drownings averaged 376 a year in 2021 to 2023, and nearly 80% of the children were under five. (Source: U.S. Consumer Product Safety Commission, June 2026) Fencing, drain covers, a lifeguard or trained operator and inspection records help your liability coverage price.
- Restaurant, bar and events — up as alcohol's share grows. The standard liability policy leaves out claims from serving alcohol; that is a separate policy, and insurers call it liquor liabilityLiquor Liability Coverage if your business is sued after serving or selling alcohol to someone who then injures another person or causes damage. Insurers call it liquor liability. more →. Read how alcohol coverage works before you take a quote.
- Building age, construction and sprinklers — up for older or frame buildings, down when documented. U.S. hotels and motels averaged about 3,900 fires a year, 15 deaths and $100 million in property loss in 2014 to 2016, the latest period published. (Source: U.S. Fire Administration) Roof age and wiring and plumbing updates also matter on property coverage.
- Payroll and the mix of jobs — up as payroll grows. Accommodation recorded 2.3 injury and illness cases that cost days away, restricted duty or a transfer per 100 full-time workers in 2024. (Source: Bureau of Labor Statistics) Workers' comp is priced on payroll by job type, then checked after the year in a premium audit.
- Claims history — up with each claim. Underwriters ask for several years of claims, and the market report above separates hotels with favorable records from those without.
- Deductible — down as it rises. The amount you pay yourself on a claim before the insurer pays — the deductibleDeductible The amount you pay yourself on a covered claim before the insurance company pays the rest. Insurers call this a deductible. more → — trades premium for cash you keep on hand.
- Franchise and lender requirements — up if they ask for more. Your franchise agreement or loan can set minimums your program must meet; read the insurance section before you compare quotes.
How much does the state change the price?
The state changes the price mainly through workers' comp rates. The ranking below is Oregon's 2024 workers' comp rate study, where 1 is the most expensive of 51 jurisdictions and 100% is the study median. (Source: Oregon Department of Consumer and Business Services) Each state also has its own law on what a hotel owes for a guest's lost belongings, which is why the guest-belongings coverage matters.
- Kansas — ranked 35th, at 83% of the median. A hotel's liability for guest belongings is $250 unless the property was handed in for safekeeping or the hotel agreed in writing to more. (Source: Kansas Statutes 36-402)
- Missouri — ranked 16th, at 120%. The cap is $200 in total for money, jewelry, apparel and baggage unless the hotel agrees in writing to more, and the law applies only if its notice is posted. (Source: Missouri Revised Statutes 419.010)
- New York — ranked 3rd, at 182%, the highest of the eight. Liability for property left in the hotel's safe is limited to $1,500 absent a written agreement, and for other property to $500 unless the loss came from the keeper's fault. (Source: New York General Business Law 200) (Source: New York General Business Law 201)
- Pennsylvania — ranked 21st, at 105%. A hotel is generally not liable for guest property unless it fails to keep a safe, suitable door locks and the law posted in at least 10 conspicuous places, and it need not accept more than $300 from one guest. (Source: 48 Pa.C.S. 1323, via FindLaw)
- Massachusetts — ranked 31st, at 89%. A guest recovers at most $300 for most belongings and $1,000 for valuables deposited for safekeeping. (Source: Massachusetts General Laws c.140 s.10)
- Louisiana — ranked 9th, at 129%. Liability for belongings not handed to the innkeeper is limited to $500 if the hotel provides a safe and posts notice of it. (Source: Louisiana Civil Code art. 2945)
- Maryland — ranked 37th, at 82%, the lowest of the eight. The hotel owes nothing for valuables if a safe is provided and the guest does not use it, and its liability on deposited valuables is $300 unless a higher value is declared. (Source: Maryland Business Regulation 15-103)
- Washington — ranked 12th, at 123%. Washington charges workers' comp premium by hours worked, and the 2026 base rate for hotels and motels is $1.2117 per hour, about 11% above 2025, before the employer's own adjustments. (Source: Washington Department of Labor & Industries)
A state's low cap on guest belongings does not remove the need for coverage: the caps are low, some depend on your posting the notice and offering a safe, and your policy's limit for guests' belongings decides what is there to pay. To see where you fall, start with what to prepare for a hotel quote.
Frequently asked questions about hotel insurance cost
A clean record protects you from a claims surcharge, but it does not freeze the price. Rebuilding costs, payroll and market-wide liability rates can all rise, and fewer insurers write hotels than a few years ago. Ask your agent to show which of those moved your number.
Not directly. Per-room cost is a way to compare spending between properties, but the policy is figured from building value, payroll, the pool, any bar and your claims record. Treat a per-room number as a rough benchmark, never as a rate.
Often, yes. Many insurers offer installments, and a down payment plus monthly payments through a finance company is common. Installments can carry fees or interest, so ask for the total cost of each plan.
Find out what your hotel would pay
Send us your room count, payroll, pool and bar details and current policies, and we'll price your property against the markets that write hotels like yours.