What insurance does a restaurant or hotel in Sint Maarten need?

Key facts

Which policies do restaurants and hotels in Sint Maarten usually look at?

They usually look at several policies together, because one incident can involve more than one of them. A kitchen fire may damage the building and equipment, close the business for weeks and injure a member of staff. A guest who slips on a wet floor may bring a liability claim. Looking at the policies side by side shows gaps and overlaps. None covers everything, and each has its own exclusions. Terms differ between insurers, so these are points to discuss, not a description of what every policy does.

• Liability to guests and visitors: general liability insurance is designed to respond to certain claims of injury or property damage to other people, and public liability insurance looks at the same question from the point of view of people who visit the premises. Food and drink that are served may also raise a product liability question.
• Buildings, kitchen equipment and contents: property insurance can address fire, storms and theft for the premises, furniture, equipment and stock.
• Income lost while closed: business interruption is often an extension to the property policy, with its own waiting period and limit.
• Staff: workers’ compensation insurance relates to employee injury or illness connected to work.
• Delivery and shuttle vehicles: commercial auto insurance applies where vehicles are used for the business.
• Online bookings and card payments: cyber liability insurance relates to data breaches and system downtime.
• Weddings, parties and functions: event insurance may be relevant to cancellation or a one-off event on the premises.
• Alcohol: bars and restaurants that serve alcohol may want to ask whether claims linked to serving alcohol are covered or excluded.

What does hurricane season mean for a hospitality business?

The Atlantic hurricane season runs from 1 June to 30 November, so a hospitality business is exposed to it for about half of every year. Property policies may treat wind, flood and storm surge differently, may apply a separate named-storm deductible, and may limit cover for items that are exposed to the weather. The hurricane insurance page explains the terms. Because many hospitality businesses depend on seasonal visitors, it is also worth asking how a closure after a storm would be treated before the season starts.

What will an insurer ask a restaurant or hotel owner?

An insurer will ask about the premises, the operation and the people. Having the answers ready can make a quotation quicker and more accurate:

• The type of premises, how it is built and how old it is.
• The number of rooms, seats or covers, and the opening hours.
• How food is cooked, and what fire protection is installed.
• Whether the business has a pool, a beach area, water activities or live entertainment.
• The number of staff, their roles and whether any are seasonal.
• Annual turnover and the value of stock, equipment and contents.
• Any previous claims or losses.

What should an owner check before renewing a policy?

Check that the sums insured still match what it would cost to rebuild and re-equip, then read the exclusions and deductibles. A short checklist:

• The building and contents values are current.
• You know the deductible for a named storm and for other losses.
• Outdoor furniture, signage, pools and docks are listed, or you know they are excluded.
• Income cover has a waiting period and limit you can live with.
• Staff are covered under the arrangement that applies to your business.
• Your landlord or lender has the evidence of cover that it asked for.
• You have photographs or an inventory of equipment and stock.

Does a villa, guest house or short-term rental need different cover?

Usually yes, because some home policies limit or exclude cover when the property is let to paying guests. It is worth asking the insurer about letting before the first booking. The homeowners and renters insurance page explains what a home policy usually describes.

Is hospitality cover different on the French side of the island?

It can be. Insurers, rules and supervision differ between Sint Maarten and Saint-Martin, and guests and suppliers cross the border every day. Where the premises are located matters when cover is arranged, and some businesses operate on both sides. The guide on insurance on the Dutch and French sides explains what Enterprise Insurance can and cannot arrange.