Hotel Civil Liability Insurance

What is Civil Liability insurance?

Civil Liability insurance guarantees the insured their non-contractual civil liability for damages caused to other people, always within the exercise of the activity declared when contracting the policy.

What Civil Liability coverage does a Hotel need?

Civil Liability insurance mainly covers the compensation that the insured must assume as a result of material or personal damage caused to a third party. The main coverage of RC Hotel insurance are:

• CR Exploitation: covers claims arising from hotel activity. Example, the fall of a guest in the facilities due to poor condition of the pavement.
• RC Products: covers claims for damages arising from the consumption of products supplied by the Hotel. Example, food poisoning of a host. 
• CR Employers/Crusader: for claims for damages to own employees or employees of subcontracted companies.
• RC Assets entrusted: customer garments in cloakrooms and laundries, goods deposited at reception, etc.

Is theft of guest property covered by RC Hotel insurance?

It can be included in the civil liability insurance, the guarantee of theft of customer goods deposited in rooms or safes. Although, the usual thing is that it is covered through the Hotel All Risk Insurance, in which a certain amount can be covered for the theft of belongings, money or even jewelery from guests. 

Is legal defense covered in Hotel Civil Liability insurance?

Is it mandatory to take out Civil Liability insurance for Hotels in the Canary Islands?

It is not mandatory to take out civil liability insurance for a Hotel in the Canary Islands, but it is highly recommended. Hotels are exposed to many complaints, mainly from their guests. The RC Hotel insurance will assume compensation for damages caused to clients or third parties for which the Hotel is responsible, or if it is not responsible, the company will assume the legal defense of the Hotel. 

What insured capital is recommended for RC Hotel insurance in the Canary Islands?

The insured capital is the amount that the insurer undertakes to indemnify in the event of a claim. This amount must be established in the policy based on: type of Hotel, volume of clients and annual billing, services offered, etc. These variables serve to measure the degree of risk and set the insured capital, although in general for RC Hotel insurance in Tenerife or Las Palmas, we recommend a minimum capital of 1 million Euros.