Innkeeper’s Liability

What Does Innkeeper’s Liability Mean?

Innkeeper’s liability insurance covers motel and hotel operators for liability related to their responsibility for safeguarding guests’ property. These policies typically have a coverage limit of $1,000 per guest, unless the loss results from natural events (such as a hurricane, storm, or tornado), civil unrest, or actions taken by the guests themselves. Most operators get this coverage built into a broader hotel insurance or motel insurance package rather than as a standalone policy.

Insuranceopedia Explains Innkeeper’s Liability

Liability statutes for innkeepers vary from state to state. For example, in Massachusetts, innkeepers are only liable for losses involving clothing, luggage, and money. However, they are not responsible for items valued over $300 unless the loss involves these specific items. If a guest’s money or jewelry is lost from the hotel’s safety deposit box, the innkeeper is liable for up to $1,000. These statutory caps are why operators often buy hospitality business insurance with higher liability limits than the minimum the law sets.

In New Mexico, the statute specifies that the hotel is liable for property losses due to theft or staff negligence, with a coverage limit of $1,000, regardless of the item’s nature. However, the hotel is not responsible for valuables that guests fail to store in the safety deposit box.

The statute of limitations applies only if the hotel has met the requirement of clearly displaying notices about the availability of safes. If the hotel does not provide such notices, it is responsible for covering the full value of any damaged or stolen property.