Hospitality Insurance for Myrtle Beach Businesses

What Is Hospitality Insurance?

Hospitality insurance is specialized commercial coverage designed for hotels, motels, bed and breakfasts, vacation rentals, and other lodging businesses. Rather than piecing together generic policies, hospitality insurance bundles the specific coverages lodging operations need—property protection, premises liability, liquor liability, guest property coverage, and more—into a comprehensive program tailored to how hotels and motels actually operate.

Myrtle Beach's tourism economy depends on hospitality businesses. From oceanfront resorts to boutique inns, lodging operations face exposures that standard commercial policies don't adequately address. Hospitality insurance recognizes that when you invite guests onto your property to sleep, eat, swim, and relax, you accept responsibility for risks that other businesses simply don't face.

Why Myrtle Beach Hospitality Businesses Need Specialized Coverage

The Grand Strand welcomes millions of visitors annually, and Myrtle Beach hospitality businesses operate at the center of that activity. High guest volume, 24-hour operations, and the full range of amenities travelers expect create liability and property exposures that demand specialized insurance protection.

• Constant guest traffic multiplies premises liability exposure — Every guest walking through your lobby, swimming in your pool, or sleeping in your rooms represents potential liability. Hospitality insurance provides the liability limits and coverage breadth that high-traffic lodging operations require.


• You're responsible for guest safety around the clock — Unlike retail stores that close at night, hotels operate continuously. Security incidents, slip and fall accidents, and medical emergencies can happen at 3 AM when staffing is minimal. Your coverage must account for this reality.


• Food and alcohol service adds significant liability — Hotels offering restaurants, bars, room service, or even continental breakfast face food contamination and liquor liability exposures. A single foodborne illness outbreak or intoxicated guest incident can generate substantial claims.


• Guest property in your care creates bailee exposure — When guests store valuables in room safes, leave cars with valet services, or check luggage with the front desk, your business becomes responsible for that property. Standard policies don't cover this exposure adequately.


• Hurricane and storm exposure threatens coastal properties — South Carolina's coast faces annual hurricane threats. Hospitality insurance programs for Myrtle Beach properties must address wind damage, flood exposure, and the extended business interruption that follows major storms.

What Does Hospitality Insurance Cover?

Hospitality insurance packages combine multiple coverages into a single program designed for lodging operations. Here's what comprehensive hospitality coverage typically includes for Myrtle Beach hotels and motels:

Commercial Property Coverage

Property coverage protects your building, furniture, fixtures, equipment, and inventory against covered perils including fire, wind, theft, and vandalism. For hospitality businesses, this means coverage for guest room furnishings, lobby décor, kitchen equipment, laundry facilities, and all the specialized property that keeps a hotel operational. Myrtle Beach properties should ensure adequate coverage for the full replacement cost of buildings and contents.

General Liability Insurance

General liability covers bodily injury and property damage claims from guests and visitors. When a guest slips on a wet floor, trips on damaged carpet, or suffers burns from malfunctioning room equipment, general liability responds to the claim. For hospitality businesses serving thousands of guests annually, adequate liability limits are essential.

Liquor Liability Coverage

If your property serves alcohol—whether through a full-service bar, poolside service, or minibar—liquor liability coverage is mandatory. This coverage protects against claims arising from intoxicated guests, including accidents they cause after leaving your property. South Carolina dram shop laws create significant exposure for hospitality businesses serving alcohol.

Innkeeper's Liability and Bailee Coverage

Innkeeper's liability—sometimes called bailee coverage—protects against claims for guest property lost, stolen, or damaged while in your care. This includes items in room safes, vehicles with valet parking, luggage stored by the front desk, and personal property left in rooms. Hotels throughout North Myrtle Beach, Surfside Beach, and the Grand Strand need this specialized coverage.

Business Interruption Insurance

When covered property damage forces your hotel to close, business interruption coverage replaces lost income and pays ongoing expenses during the restoration period. For Myrtle Beach hospitality businesses, this coverage is critical—a fire or hurricane damage during peak summer season can result in months of lost revenue. Extended business interruption coverage accounts for the time needed to rebuild occupancy after reopening.

Equipment Breakdown Coverage

Hotels depend on HVAC systems, elevators, commercial kitchen equipment, and laundry machinery. Equipment breakdown coverage pays for repairs and resulting losses when mechanical and electrical equipment fails. A broken air conditioning system during a South Carolina summer isn't just an inconvenience—it's a business emergency.

Swimming Pool Liability

Pool areas represent one of the highest liability exposures for hospitality businesses. Drowning, diving accidents, slip and falls on wet decks, and drain entrapment incidents can result in catastrophic claims. Hospitality insurance programs include pool liability coverage with limits appropriate for this exposure.

Assault and Battery Coverage

Hotels can face claims alleging inadequate security when guests are assaulted on the property. Assault and battery coverage—often excluded from standard liability policies—protects against these claims. Properties in Conway, Georgetown, and throughout the Grand Strand should verify this coverage is included.

Special Exposures Facing Myrtle Beach Lodging Businesses

Beyond standard coverage needs, Myrtle Beach hospitality businesses face several exposures that require specific attention in your insurance program:

Bed bug claims have increased dramatically across the hospitality industry. Guests alleging bed bug exposure may claim medical expenses, property damage, and emotional distress. Some hospitality policies include bed bug liability coverage, while others exclude it entirely. Verify how your policy addresses this exposure.

Hurricane and named storm damage threatens every coastal hospitality property. Standard property policies may exclude or sublimit wind and flood damage, leaving hotels underinsured for the most likely catastrophic loss. South Carolina hospitality businesses need to review wind and flood coverage carefully, potentially securing separate policies for adequate protection.

Cyber liability affects hotels that process credit card transactions and store guest information. Payment card data breaches, reservation system hacks, and identity theft incidents create liability and notification expenses. Cyber coverage is increasingly important for hospitality operations.

Event and wedding liability applies to hotels hosting banquets, conferences, and celebrations. These events bring additional guests onto your property, often with alcohol service and activities beyond normal hotel operations. Special event coverage ensures adequate protection when your property becomes a venue.

How Much Does Hospitality Insurance Cost in South Carolina?

Hospitality insurance premiums vary significantly based on your property's size, location, amenities, and loss history. A small bed and breakfast pays far less than a 200-room oceanfront resort with multiple restaurants and a conference center.

Factors affecting your hospitality insurance premium include:

• Property value and construction — Larger buildings with higher replacement costs generate higher property premiums. Fire-resistive construction typically costs less to insure than wood-frame buildings.


• Number of rooms and annual occupancy — More rooms and higher occupancy mean more guest exposure, affecting liability premiums.


• Amenities offered — Pools, restaurants, bars, fitness centers, and spas each add exposure and premium. Properties with extensive amenities pay more than limited-service hotels.


• Alcohol sales volume — Liquor liability premiums reflect your alcohol revenue. Properties with high bar sales face higher premiums than those offering only beer and wine.


• Claims history — Prior losses significantly impact hospitality insurance pricing. Properties with frequent guest injury claims or property losses pay more than those with clean histories.


• Coastal location — Myrtle Beach properties pay more for wind coverage than inland locations due to hurricane exposure.

Because hospitality insurance involves numerous coverage components, working with an independent agency that understands lodging operations helps ensure you're not overpaying for unnecessary coverage or underinsured for critical exposures.

Why Work with Moore & Associates for Hospitality Insurance?

Moore & Associates has served Myrtle Beach and the South Carolina coast since 1979—decades of experience insuring the hospitality businesses that drive our local economy. As an independent agency, we shop your coverage across multiple insurance carriers specializing in hotels, motels, and lodging operations. We're not limited to one company's products, which means we can find programs that actually fit how your property operates.

Hospitality insurance requires understanding the specific exposures your property faces. A boutique inn in Pawleys Island has different needs than a family resort in Murrells Inlet or a business hotel near the Convention Center. Our local agents take time to understand your operation, review your current coverage, and recommend programs that address your actual risks—not generic packages designed for properties nothing like yours.

Get a Hospitality Insurance Quote in Myrtle Beach, South Carolina

Our hospitality insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.