Host and innkeeper package: Property + Liability + Loss of Rental Income (with Innkeepers’ Legal Liability)

Designed for Canadian short‑term rental hosts, B&Bs, boutique inns, and vacation rental operators who need a single, well‑curated insurance bundle that protects revenue, guests, and assets.

Who this is for

• Short‑term rental hosts operating whole homes, secondary suites, carriage houses, or multi‑unit portfolios

• Bed & breakfasts and boutique inns with on‑premise guest services

• Property managers and investors overseeing furnished rentals for nightly/weekly stays

The bundle: property + liability + business interruption

Summit curates a single package built from core coverages. We compare leading insurers and configure limits, deductibles, and endorsements for your operation.

Innkeepers’ legal liability: what it is and how it works

Innkeepers’ legal liability responds when a guest’s property is lost or damaged on your premises and you are legally responsible. Key points:

• Generally applies to property in your care, custody, or control (e.g., items in rooms, secured storage, or checked property).

• Typical sublimits are separate from CGL limits; we tailor to your occupancy, ADR, and guest profile.

• Common perils: theft, fire, water damage; intentional acts and mysterious disappearance may be excluded or require proof standards.

• Risk controls to support insurability and defendability:

• Provide in‑room safes and post clear procedures for valuables.

• Keep key‑control and staff access logs; document found‑property handling.

• Maintain camera coverage of common areas (respecting privacy laws) and secure storage for luggage.

Loss of rental income: when BI pays for hosts

Business Interruption (BI) is triggered by direct physical loss or damage from an insured peril under your property policy. For STR/B&Bs, that typically means fires, certain water events, wind/hail, vandalism, or equipment breakdown (if endorsed). What to know:

• Waiting period: Most BI forms include a time deductible (e.g., 24–72 hours) rather than a dollar deductible.

• Indemnity period: Select 12–24 months to cover peak season recovery, lead‑time for repairs, and re‑booking ramp‑up.

• Extra Expense: Covers costs to reduce downtime (portable boilers, temporary kitchens, expedited shipping for materials).

• Civil Authority and ingress/egress: May provide limited coverage when access to the property is restricted by order following nearby damage.

• Not covered: Market downturns, ordinance changes without accompanying covered damage, or losses from unlicensed/illegal operations.

Examples tailored to STR/B&Bs:

• Kitchen fire leads to smoke damage across two floors; BI replaces cancelled bookings for 14 weeks while repairs complete.

• Burst supply line renders a suite non‑habitable; Extra Expense funds accelerated contractor availability to reopen before peak season.

• Power surge fries HVAC boards during a heat wave; Equipment Breakdown plus BI covers emergency rentals and lost nights.

See Business Interruption for mechanics and exclusions.

Province‑specific notes (high‑level)

Regulatory and licensing requirements vary by province and municipality. Insurance policies generally require you to be operating legally and to comply with local bylaws, zoning, life‑safety, and permitting. Always verify current rules in your city/town before accepting bookings.

• British Columbia: Provincial STR rules and many municipal bylaws apply; principal‑residence and zoning restrictions are common. Confirm business licensing, safety inspections, and strata bylaws where applicable.

• Alberta: Calgary/Edmonton and resort communities have licensing, safety checklist, and record‑keeping requirements; verify occupancy limits and fire code compliance.

• Saskatchewan: Municipal permits and inspection regimes vary; ensure smoke/CO detectors, egress, and rural septic/heating systems meet code.

• Manitoba: Winnipeg and other municipalities may require registration and life‑safety standards; check condo/HOA rules for short‑term use.

• Ontario: Major cities (e.g., Toronto, Ottawa) and many towns require registration, primary‑residence rules, and tax remittance; confirm condominium declarations/bylaws.

• Nova Scotia: Tourist accommodation registration and local rules may apply; confirm platform reporting requirements and coastal/wind exposures.

• New Brunswick: Municipalities increasingly require permits and safety attestations; verify wood‑burning appliance and pool/hot‑tub standards.

• Newfoundland and Labrador: Seasonal properties should address wind, freeze, and access limitations; confirm any tourism registration and fire code items.

• Prince Edward Island: Registration and local tourism requirements may apply; document emergency procedures and guest communications.

If you host on behalf of owners, see Property Management Insurance.

Why Summit for short‑term rentals and B&Bs

• Independent brokerage comparing multiple Canadian insurers for value and fit

• Fast, responsive service and dedicated account management as your occupancy and portfolio evolve

• Claims advocacy that coordinates adjusters and restoration partners; start at Claim Services

• Hospitality expertise: see Hotel, Motel, Inn & Vacation Rental Insurance and complementary Landlord Insurance

Pricing and limits: what drives your premium

• Property characteristics: construction, year built, updates (roof, plumbing, electrical), protection class

• Occupancy pattern: nights booked, seasonality, minimum stay, event usage

• Amenities: pools/hot‑tubs, fireplaces/wood stoves, docks/watercraft, EV chargers

• Risk controls: monitored alarms, water‑leak detection, fire suppression, exterior lighting, guest screening

• Revenue and portfolio size: ADR, annual gross rent, number of units/locations

• Claims history and local peril profile: fire, water, wind/hail, theft

Typical targets we help hosts assess:

• Liability: $2M–$5M primary; umbrella to $10M for higher‑exposure properties

• Property: replacement cost with accurate building valuations and seasonal occupancy endorsements

• BI (loss of rents): 12–24 months indemnity; consider peak‑season dependency and rebuild timelines

What to prepare for a quote

• Address(es), construction details, photos/floor area, recent updates

• Operations summary: booking platforms, average occupancy/ADR, amenities, house rules

• Life‑safety: alarms, detectors, extinguishers, inspection cadence

• Prior insurance and 5‑year loss runs (if applicable)

Start with our core product pages: Commercial Property, General Liability, and Business Interruption.

FAQs

Do I need a special policy if I already have homeowners insurance?

Yes. Standard homeowners policies often exclude or severely limit coverage for short‑term rental activity. Hosts typically need a commercial/landlord or hospitality‑oriented package that includes CGL, property, and BI tailored to paid guest stays.

What exactly is Innkeepers’ Legal Liability?

It’s insurance that covers your legal liability for loss or damage to guests’ property while on your premises and in your care, custody, or control. It is separate from CGL and usually carries its own sublimit and conditions.

How is “loss of rental income” calculated after a claim?

Insurers look at historical financials, seasonality, forward bookings, and market trends to estimate what you would have earned during the period of restoration. A time deductible (waiting period) applies, and coverage ends when the property should reasonably be repaired.

Are platform guarantees enough for protection?

Platform guarantees are not a substitute for an insurance policy. They typically contain limitations, exclusions, and discretionary payments. A dedicated policy provides contractual rights, defined limits, and claims handling standards.

Will my policy cover guest injuries in common areas like decks or docks?

Yes, that exposure is typically addressed under CGL, provided you maintain reasonable safety and comply with building codes (rails, non‑slip surfaces, lighting, and signage). Higher‑risk amenities may require specific underwriting approval.

Does BI cover cancellations from bylaw changes or licensing issues?

No. BI usually requires direct physical loss or damage from a covered peril. Operating without required permits, licenses, or code compliance can jeopardize coverage.

How quickly can coverage be placed?

For many risks, we can quote and bind coverage quickly once underwriting information is complete. Complex properties or higher liability limits may require additional review.

What limits should small B&Bs consider?

Start with $2M CGL and evaluate $5M with an umbrella for properties with pools, water access, or events. Choose BI indemnity of at least 12 months; 24 months is prudent if rebuilds could be lengthy.

For tailored advice and a comparative quote, contact Summit’s team. We’ll curate the right mix of property, liability, and loss‑of‑rents coverage for your operation.