Boutique hotels are distinct for their aesthetic appeal, local engagement, and personalized service. This individuality necessitates tailored insurance solutions to protect against potential risks, recognizing the importance of their connection to the communities they serve.
Juan Fourie at Santam, South Africa’s largest short-term insurer with a market share in excess of 22%, emphasizes that boutique hotels are intentionally designed to harmonize with their surrounding communities and often incorporate the cultures and atmospheres of the neighbourhoods in which they are situated.
“The type of traveller that enjoys staying at a boutique hotel is not defined by their age, but more by their attitude towards life.
According to a survey by the Curio Collection by Hilton, 91% of guests who adore the boutique hotel experience said they are curious humans who seek unexpected and authentic experiences, which are often found at one of these properties,“ says Fourie.
For someone who owns a boutique hotel, it's crucial to ensure their business is safeguarded from specific risks that are common in the hospitality industry.
These risks include disruptions to business operations, instances of customers leaving without paying (bilking), damage to refrigerated stock, breakage of glass and sanitary items, and cases of food poisoning.
The importance lies in the need to protect the hotel's financial stability and reputation. To do this, it's essential to have insurance coverage for these events.
According to Fourie, owners of boutique hotels should make sure that they also consider the following types of insurance cover for their establishment:
Contents cover
Boutique hotels often boast beautiful decor, which is part of the appeal. Whether this is unique pieces of furniture, or linen and bedding, make sure you cover these items for the correct value.
Guests’ personal effects
The typical guest staying at a boutique hotel is curious and adventurous. They are may own expensive electronic equipment and cameras and could even bring their bicycle on holiday with them.
Ensure that you have adequate cover for personal belongings of travellers should the unforeseen happen.
Cancellation of bookings
Life happens and guests may be forced to cancel their booking, leaving you in a tight spot. You can take out cover against this eventuality.
External signs
A sign speaks a thousand words. If yours gets damaged, you want it replaced as soon as possible so that people can find their way to your hotel.
But these things are often expensive to fix or replace. You can take out insurance against damage to external signs, blinds and canopies, even if they are not on your premises.