The proprietor of a Hotel or other holiday accommodation has a duty to take reasonable care of the property of its guests. If the property is lost or damaged through the default, neglect or wilful act of the proprietor or someone working for him, i.e. a theft of a guest's property through inadequate security of a bedroom, the proprietor could be held to be liable. In such circumstances, the Public Liability section of the proprietor's business insurance policy would provide protection.
Additionally, cover under a Hotel Insurance package or similar business insurance policy can be extended to include an amount for guests effects up to a certain sum insured, regardless of whether there was negligence on the part of the proprietor or not. Such cover will extend to the risks provided by the insurance policy, typically fire, storm, flood, theft, malicious damage etc. However, the section would normally be subject to a policy excess. Often this extended cover is taken to maintain good relationships with guests.
A hotel proprietor is well advised to seek the protection of the Hotel Proprietors Act 1956. The act states that the proprietor's liability for any loss or damage to guest's property is limited to £100 per guest, subject to a limit for any one article of £50. This extends to any non-negligent loss or damage to guests property, except in the case of property which has been deposited for safe custody. The Public Liability Insurance section of the hotel insurance policy should cover any claims made under the Act. Most importantly for it to apply a Hotel Proprietors Act notice detailing its provisions must be displayed in a prominent position for guests to see.
If you would like more information or advise on this topic, please contact
Melanie Birchell at Pavey Group
Email: Melanie.Birchell@paveygroup.co.uk
Tel: 01803 408 045
Richard Baker
Stephens Scown Solicitors
Expert on: the holiday and caravan park sector
Dominic Hollingsworth
Kitsons LLP
Tim Borton
Bishop Fleming
Expert on: Finance, Tax and VAT
Melanie Birchell
Pavey Group
Expert on: Tourism and Leisure Insurance
Simon Sanger-Anderson
Tozers Solicitors
Expert on: Employment law
South West Tourism's Board of Directors welcome and encourage your questions.
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Comments
Tendai, Zimnat Lion Insurance Company
brilliant answer and advice
Comment made: Thursday 24th September 2009
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