Boutique Hotel Owners Share Their Insurance Horror Stories

It’s all sunshine and rainbows until the nightmare guest checks in. Only then will the grim reality of “being your own boss” truly dawn upon boutique hotel owners. All it takes is just one overexuberant guest who goes on a rampage, and it’ll end up costing the owner both financially and reputationally.
It’s safe to say that most boutique hotel owners have learned the hard way. With most of them unilaterally agreeing that securing the right business insurance coverage is key to mitigating the risks of operating their very own boutique hotel business.
Strap in and read on, because we’ll be sharing some real-life horror stories from other boutique hotel business owners and how having the right insurance coverage saved them from devastating losses. Learn how Berjaya Sompo’s customisable SME business insurance plans can help protect your business from similar situations.
The Case of the Rowdy Wedding Party
Hotel Owner: Jane, Kuala Lumpur
Jane’s boutique hotel was hosting a grand wedding party when things took an unexpected turn. The guests partied late into the night, causing significant damage to the property—broken furniture, stained carpets, and even vandalised bathrooms. The total repair costs amounted to tens of thousands of ringgit.
At first, Jane didn’t think she needed extensive property coverage, but after just a month in business, she realised how critical it was to have comprehensive protection. The solution? She got herself insured early on with Berjaya Sompo’s Property Damage Insurance which eventually covered the repair costs, helping Jane restore her hotel to its former glory without having to dip into her savings.
A Fire That Almost Ruined Everything
Hotel Owner: Samuel, Penang
Samuel’s boutique hotel was a charming heritage building that attracted tourists from all over the world. One night, an electrical fire broke out in the kitchen, spreading quickly to the dining area. Thankfully, no one was injured, but the damage to the property and loss of business during repairs started to mount up quickly.
Unfortunately, Samuel only had basic coverage but lacked business interruption insurance, which left him struggling financially as he could only operate at limited capacity during the months it took to rebuild. After the incident, Samuel opted for Berjaya Sompo’s Comprehensive Protection Plan, which covers any fire damage and includes Business Interruption Insurance to help him maintain his income during a downtime.
A Guest Lawsuit Nightmare
Hotel Owner: Amanda, Johor Bahru
One of Amanda’s guests slipped and fell in the lobby, sustaining a serious injury to her face which required extensive plastic surgery. The guest filed a lawsuit, claiming negligence on the hotel’s part. Legal fees and compensation demands quickly escalated, causing Amanda to pay out of her own pocket, thus putting her business at risk.
Amanda quickly realised the importance of having public liability coverage to protect against unexpected legal claims. She eventually signed up for Berjaya Sompo’s Public Liability Insurance, which would have covered all her legal costs and allowed her to focus on improving safety measures without financial strain instead of worrying about paying the damages to her aggrieved guest.
Why Boutique Hotels Need Customisable Insurance Plans
These stories highlight the real risks boutique hotel owners face daily. Without the right insurance, incidents like property damage, fire, and guest lawsuits can threaten the survival of your business. Berjaya Sompo offers customisable SME insurance plans that cater to your specific needs, ensuring you’re covered for the most common—and unexpected—risks.
Our Coverage Options Include:
- Property Damage Insurance: Covers damages from fire, theft, and accidents.
- Public Liability Insurance: Protection against third-party injury claims.
- Business Interruption Insurance: Ensures cash flow during operational downtime.
- Employee Protection Plans: Safeguards your staff’s well-being in case of accidents.
Insure Your Boutique Hotel Today
Don’t wait for an incident to happen before realising the importance of proper insurance. Let Berjaya Sompo help you safeguard your business with customisable SME insurance plans tailored to your needs.
Get in touch with us today to learn more about how we can protect your business from potential horror stories!