Commercial property insurance

Hotel & Motel Insurance

A hotel or motel carries a property risk and a hospitality risk under the one roof: guests sleeping on site every night, a reception till, a laundry and plant running around the clock, and often a licensed bar. Standard commercial property cover was not built with an occupied building in mind, which is why this is placed as its own class rather than folded into a generic property policy.

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Quick Quote

60 seconds

Building, contents and fit-out combined. A ballpark is fine.

The company, trust or individual name on the title or lease.

No obligation. Subject to eligibility and underwriting.

Cover

What hotels and motels need covered

Building, Guest Rooms and Fit-out

The structure, guest room fit-outs, reception, furniture and fittings need a sum insured based on full reinstatement, not purchase price. Motels built decades apart on the same strip carry very different rebuild costs once current codes and accessibility upgrades are priced in.

Liability to Guests and Visitors

Guests are on site around the clock, not passing through for an hour, which changes the liability picture: a pool, stairwells, a car park and a bar all carry exposure whenever a room is occupied, day or night. This is the cover most head-lease and franchise agreements require evidence of before they will let you trade.

Loss of Room Revenue

A fire or storm that closes wings or the whole property does not just stop trade for a day. Reinstatement of a licensed, multi-room building runs on approval and re-licensing timeframes, not a builder's estimate, so the indemnity period needs to be long enough to cover a rebuild most owners underestimate.

Licensed-Premises and Liquor Liability

Where a bar operates on site, serving alcohol brings its own liability exposure separate from general guest injury, and it is usually excluded unless declared and rated for. Tell us if the licence covers guests only or the public as well, since that changes the placement.

Money and Theft

Cash at reception, a safe used for guest valuables and stock in a mini-bar or shop are all theft targets in a building the public can walk into at any hour. Declare takings at a realistic daily figure rather than an average, since a long weekend can hold far more than a quiet midweek night.

Machinery Breakdown

Laundry equipment, lifts, pool plant, air conditioning and kitchen equipment all fail on their own account, which property perils do not answer. A single laundry breakdown can take housekeeping offline property-wide, so this is worth electing rather than assuming it is bundled in.

Cover, limits and examples shown are general in nature and subject to eligibility, underwriting and the terms of the issued policy.

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Reviews are for Stonewell Insurance, the business behind Commercial Property Cover. Authorised Representative of McLardy McShane Partners Pty Ltd (AFSL 232987).

FAQ

Hotels and motels insurance questions.

Speak with our team on 1300 080 323.

What insurance does a hotel or motel need?
Property cover for the building and fit-out; liability to guests, staff and the public; loss of room revenue if an insured event closes rooms; money cover for reception and safes; and machinery breakdown for laundry, lifts and plant. A licensed bar needs liquor liability added specifically.
Is a motel treated differently to a hotel for insurance?
Not as a rule — both are rated on occupancy, guest numbers, whether a bar or function space operates on site, and construction, rather than on the name over the door. A larger hotel with a licensed venue and function rooms will usually carry a broader liability exposure than a small roadside motel.
Does the policy cover an on-site bar or licensed area?
Only if it is declared and rated for. Liquor liability is a distinct exposure from general guest injury, and an undeclared licensed area is one of the more common gaps we find at renewal on properties bought with a bar already trading.
What happens if a fire closes part of the property?
Loss of room revenue can replace the income those rooms would have earned while they are rebuilt, provided the indemnity period is long enough. Reinstating a licensed, multi-room building routinely takes longer than a single dwelling, so this figure deserves real thought rather than a default.
How much does hotel or motel insurance cost?
There is no single price. Room count, construction, whether a bar or function space operates on site, location, and claims history all move it. We compare options across a panel of insurers and come back with terms for the property.

Ready to get hotels and motels covered?

Tell us about the property in about 60 seconds and we come back to you with options.

Commercial Property Cover is a trading name of Stonewell Insurance Pty Ltd (ABN 23 645 965 699), Corporate Authorised Representative No. 1285612 of McLardy McShane Partners Pty Ltd (ABN 14 064 465 309, AFSL 232987).