SWG PROPERTY: Commercial Property – Insuring Hotel and Motel Properties for the Holidays and Beyond

Dec 2019

Hotels and motels need property protection in the event of a storm, flooding, landlord disputes, equipment/system breakdowns, or damages due to theft or unfortunate accidents, to name a few. Weather-related power outages, blizzards, ice storms, and other intense weather events can not only damage property but also interrupt business. Since hotels and motels rely on a physical location, any damage from accidents, bad weather, or other common occurrences can incur major losses if customers cancel or business operations are compromised. So, it’s a good idea for these businesses to prepare for intense weather and catastrophic events, even though they occur rarely.

Why Hotels and Motels Need Tailored Property Insurance

A savvy broker knows the ins and outs of hotel/motel operations and can anticipate the unexpected risks that could lead to property damage, business interruption, or legal action. Following are examples of what can go wrong at a hotel or motel property:

  • Property landlords sue the hotel operator for breach of lease, claiming the business failed to furnish and equip the property in accordance with the standards of a first-class luxury hotel. (1)
  • A fire breaks out in a historic hotel. Fire fighters are unable to salvage the property or its contents. (2)
  • A carbon monoxide leak pulls a motel’s business to a halt, sending several people to the hospital. Gas to the building is shut off for a lengthy ventilation process. (3)
  • A hotel guest hangs dry cleaning on a sprinkler head in their room, activating the sprinklers and causing water damage to the property. (4)

SWG Offers Specialized Coverage for Hotels and Motels

SWG PROPERTY – Commercial Property insurance is designed to cover hard-to-place property accounts. We can accommodate most realty-type risks, from stand-alone rentals and vacant dwellings, to large commercial risks, with an in-house capacity of up to $6,000,000 ($4,000,000 for Quebec).

Coverage Highlights:

  • Broad Form or Named Perils
  • ACV or Replacement Cost

Other Coverages Include:

  • Business Interruption
  • Flood, Earthquake, Sewer Backup
  • Crime – including Employee Dishonesty & Broad Form Money & Securities.
  • Mechanical Breakdown

Extension packages are available for building bylaws, fine art, exterior building glass, building damage by theft, system breakdown coverage, and more. See the SWG PROPERTY page for more details.


  1. https://www.insurancebusinessmag.com/ca/news/hospitality/landlords-sue-hotel-for-not-being-luxurious-enough-87858.aspx
  2. https://winnipeg.ctvnews.ca/fire-destroys-town-centre-hotel-in-the-pas-1.3493131
  3. https://www.thepostmillennial.com/winnipeg-hotel-gas-leak-hospitalizes-46-leaves-15-in-critical-condition/
  4. https://www.newswire.ca/news-releases/nexpoint-hospitality-trust-announces-third-quarter-2019-financial-results-and-declares-quarterly-distribution-885508580.html