What Does Innkeeper's Liability Mean?
Innkeeper’s liability insurance covers motel and hotel operators for liability arising from their responsibility for the safekeeping of their guests' property.
These policies generally have a limit of $1,000 per guest, unless the loss is caused by an act of nature (such as a hurricane, storm, or tornado), civil unrest, or the guest's actions.
Insuranceopedia Explains Innkeeper's Liability
The liability statute varies from one state to another. For instance, in the state of Massachusetts, innkeepers are not liable for any losses except those involving clothes, luggage, and money. Moreover, in the event of such loss, the innkeeper is not liable for items that cost more than $300. If, however, the guest loses money or jewelry deposited in the hotel's safety deposit box, the innkeeper is liable for an amount of up to $1,000.
In the state of New Mexico, on the other hand, the statute specifies that the hotel is liable for the loss of the property caused by theft or negligence of the staff with a limit of $1,000, regardless of the item. Furthermore, the hotel will not be held accountable for valuables that guests failed to keep in the safety deposit box.
The statute of limitation is only applicable when the hotel has followed the requirements by conspicuously putting up notices regarding the availability of safes. If the hotel does not follow this requirement, they are responsible for paying the full value of the damaged or stolen property.