1) Fire & Specified Perils (Property Damage)
As in a conventional Fire Policy, this Section covers Property Damage due to FIRE & LIGHTNING as the basic cover and usually extended to cover following additional perils: Explosion, Impact Damage, Aircraft Damage, Bursting and Overflowing of Water Tanks, Apparatus or Pipes and named Natural Perils (flood, earthquake, volcanic eruption, hurricane, typhoon, windstorm, hailstorm, thunderstorm, tornado, tsunami and tidal waves).

As most of the Hotels are equipped with Boilers, a separate Boiler Insurance must be obtained to cover own damage and possible liability to third-parties due an explosion.

Further, policy could be extended to cover Riot, Strikes and Civil Commotion, Terrorism and Malicious Damage (social perils).

2) Theft
Loss of or damage to own property due to burglary involving forcible or violent entry/ exit would be covered. This cover could be extended to cover guests’ belongings whilst contained within the locked room and, in case of jewellery/ valuables, whilst in safes/ custody of the Hotel.

3) Public/ Legal Liability
Covers liability to third parties (guests), where the Insured becomes legally liable to pay damages consequent upon:

1) accidental bodily injury to or illness contracted by any person;
2) accidental loss of or damage to property.

Costs and expenses of litigation too will be paid within the Limit provided in the policy.

This insurance applies to above that takes place within the Hotel premises and usually subject to Sri Lankan jurisdiction. Any changes to the Jurisdiction could be arranged based on the requirement of the Hotelier– covering Worldwide including USA and Canada, or Worldwide excluding USA and Canada.


4) Plate Glass
Covers accidental breakage, damage or loss of Fixed Glass or Signed Boards as described the Schedule and it could be extended to cover damage to frames up to agreed Limits.


5) Money
Protects loss/ damage to money whilst held in Hotel premise (in drawer or safe) and, in transit (to and from banks and clients).

Definition of money– bank and currency notes (including foreign currency notes), current coins, cheques, postal orders, current postage and revenue stamps.

6) Electronic
This Section offers a comprehensive insurance covering an array of perils on ‘all risks’ basis and accidental damage to Hotel’s electronic items, e.g. computers, uninterrupted power supply (UPS) units, servers, fax machines, new-age digital/ plasma TV’s, etc.

Riot, Strikes and Civil Commotion and Terrorism covers are obtained as additional perils.

Though this extension has 3 sub-sections, most commonly issued policies has only Section 1 - Material Damage. The other two are Reinstatement of Data, and Business Interruption (Loss of Gross Profit), respectively.

7) Workmen’s Compensation
Provides compensation to the Hotel Staff (who are in immediate service) who may sustain physical personal injury by accident or disease arising out of and in the course of his employment where the Employer becomes liable to pay compensation as per the Policy or at Common Law. Policy provides cover based on the Workmen’s Compensation Act 1934 (Amended).


8) Fidelity Guarantee
Provides indemnity to the Employer against direct pecuniary loss caused by act of fraud or dishonesty (financial crimes) committed by the Employees during the period of insurance specified in the Schedule.
Requirements under this insurance:

- The loss should occur in connection with the Employee’s position (designation) specified in the Scheduled
- The loss should be discovered within 6-months after the death, termination, retirement of such Employee   or 6-months after the expiry of the Policy, whichever of these events shall happen first.
- Only confirmed, permanent Employees could be covered
- Proper control systems and checks should in place

The Insured (Employer) has the option of obtaining cover on:
1) Blanket (or Floater) basis – a single Sum Insured is set under the Policy covering all staff
2) Named or Position basis – where names or designations of the Employees are declared and separate Limits are set against each named-person or position.

9) Personal Accident
If the Hotelier wants a cover (for his employees or himself) on worldwide-basis or up to limits higher than those allowed under the Workmen’s Compensation Insurance for his employees, this Section could be opted for. Under this extension, compensation against accidental injury (by violent, external and visible means) resulting in temporary partial/ total disability, permanent partial/ total disability or death. Based on the income of the insured, the Sum Insured/ Limit under this policy is set.

In case of permanent disablement, benefits are paid according to a pre-agreed schedule, as a percentage of the Sum Insured.


This insurance is operative on 24-hour and worldwide basis.