Chapter 3 - hotel and guest houses

Question 1

Hotels - What act from 1956 applies the circumstances in which strict liability applies and the amount the hotel is liable for?

Answer 1

Hotel Proprietors Act 1956

Question 2

Hotels - Under the Hotel Proprietors Act 1956 - what is the liability of the hotelier limited to?

Answer 2

£50 for any one article or £100 for the property of any one guest.

Provided the hotelier displays a notice providing details of the act in a conspicuous place.

Question 3

Hotels - What act increases the Hotel Proprietors Act and for what region?

Answer 3

London Local Authorities Act 2004. Increasing the limits payable by hotels within Greater London to £750 for any one article and £1,500 for the property of any one guest.

Question 4

Hotels - What does strict liability not extend to in term of the hotel proprietors liability?

Answer 4

Motor Vehicles or there contents
Animals
Items deposited with the hotel for safe keeping
Theft my employees of the hotel

Question 5

Hotels - Since motor vehicles or their contents and animals are excluded by the Hotel Prorietors Act, what would cover there liabilities?

Answer 5

The hotel and guest policy, subject to the notice being displayed and some insurers impose an inner limit of typically £25,000.

Question 6

Hotels - Is goods in transit covered as standard?

Answer 6

Yes

Question 7

Hotels - Is damage to external blinds and signs covered as standard?

Answer 7

yes

Question 8

Hotels - Is replacment locks and keys following theft covered as standard?

Answer 8

yes

Question 9

Hotels - Is temporary removal of documents covered as standard?

Answer 9

no

Question 10

Hotels - Are seasonal stock increases covered as standard?

Answer 10

Yes

Question 11

Hotels - What is different about the standard theft cover on a hotel package compared to a normal package?

Answer 11

It is full theft cover and is not restricted to theft involving forcible and violent entry to or exit from the premises?

Question 12

Hotels - What is excluded under the full theft cover?

Answer 12

Collusion ie conspiracy or plan

Question 13

Hotels - What is covered under Property in the open and under what limits?

Answer 13

Things like picnic tables or garden benches in the hotel grounds.
Between £500 - £2000 cover

Question 14

Hotels - How much is covered under Guests’ personal effects and motor vehicles?

Answer 14

Personal Effects - £1000 to £2500
Moto - £10,000 for any one vehicle

Question 15

Hotels - Under guests’ personal effects and motor vehicles, what is excluded?

Answer 15

Liability for guests’ property deposited with the hotel for safekeeping unless valuables and money are kept in a safe or strongroom.

Question 16

Hotels - What kind of cover is Guests’ personal effects and motor vehicles?

Answer 16

This is a property damage cover.

Question 17

Hotels - Does guests personal effects and motor vehicle cover and Employees’ personal property cover have to comply with the Hotel Proprietors’ Act?

Answer 17

It applies regardless of the issues of negligence and strict liability discussed in relation to the Hotel Proprietors’ Act.

Question 18

Hotels - How much cover is there under Employees’ personal property?

Answer 18

Between £750 - £1000 per employee

Question 19

Hotels - What cover is there for “loss or damage caused by leakage of bulk beverage supplies”?

Answer 19

There is no cover for the replacement of the beverage itself.

Question 20

Hotels - What is the single article limit for any paining and other works of art?

Answer 20

£5000

Question 21

Hotels - What cover is there for disease, infestation or defective sanitation, and what element of the policy would pick this up?

Answer 21

This extends the business interruption cover to include loss of gross profit following disease, infestation or defective sanitation at the premises, subject to a limit of £25,000.

Question 22

Hotels - Is buildings covered as standard?

Answer 22

No - optional extra

Question 23

Hotels - Is freezer contents covered as standard?

Answer 23

No - optional extra

Question 24

Hotels - Is fidelity insurance covered as standard?

Answer 24

No - optional extra

Question 25

Hotels - Is portable equipment covered as standard?

Answer 25

No - optional extra

Question 26

Hotels - Is terrorism covered as standard?

Answer 26

No - optional extra

Question 27

Hotels - Is computer breakdown covered as standard?

Answer 27

No - optional extra

Question 28

Hotels - Is legal expense cover covered as standard?

Answer 28

No - optional extra

Question 29

Hotels - What is different about hotel legal expense cover?

Answer 29

this includes cover for appealing to the relevant statutory or regulatory body following the revocation, change or refusal to renew a statutory licence

Question 30

Hotels - Is personal accident included as standard?

Answer 30

No - optional extra

Question 31

Hotels - Is loss of licence covered as standard?

Answer 31

No - optional extra

Question 32

Hotels - What is loss of license cover?

Answer 32

Cover for the reduction in the insured’s interest in the premises or business due to non-renewal or withdrawal of the license to sell liquor due to causes beyond the insured’s control.

Question 33

Hotels - What sum insured is there on loss of license cover?

Answer 33

£100k - £200k

Question 34

Hotels - Do loss of license cover the expenses involved in trying to regain the license?

Answer 34

Yes

Question 35

Hotels - Is outside catering covered as standard?

Answer 35

No - optional extra

Question 36

Hotels - What is included in outside catering cover?

Answer 36

Cover for injury to the public and damage to their property, plus damage to the insured’s own equipment.

Question 37

What sum insured’s are there for outside catering?

Answer 37

Public liability cover is subject to a standard policy limit of £2m.
A sum insured of £2,000 typically applies for damage to the insured’s own equipment.