Inn, motel, B&B and short-term rental insurance in New York
Lodging is a business where strangers sleep in your building. They slip on the ice in the lot, swim in the pool after dark, leave a laptop in the room and blame the housekeeper, and expect breakfast and a drink at the bar. New York has its own innkeepers' law, health permits and rental rules. Here's how the insurance fits together for an inn, a motel, a bed and breakfast, or a set of short-term rentals run as a business.
An inn, motel or bed and breakfast in New York needs general liability for guests, property and business income for the building and the season, cover for guests' belongings, liquor liability if it serves alcohol, and workers' compensation with DBL and Paid Family Leave for staff, seasonal help included. General Business Law §§200-206 limits a keeper's liability for guests' valuables when a safe is offered and the notices are posted, but not when the loss is the keeper's fault, and requires a guest register and posted rates. Operators running several short-term rentals also deal with county registration, state sales tax and the county's occupancy tax.
The lodging package
- General liability for guests: falls on stairs and icy walks, bunk beds, fire pits, playgrounds, docks and the kayaks or bikes you lend. Breakfast and any meals you serve are part of the same exposure, including a food-borne illness claim.
- Innkeepers' liability for guests' belongings, which general liability excludes as property in your care, custody or control.
- Property and business income: the buildings at rebuild cost, furniture, linens and kitchen equipment, and the income you lose if a covered fire closes you in the busy season. Equipment breakdown for boilers, heating and coolers. Policies limit cover for buildings left vacant, so tell the carrier when you close for the winter. Commercial property excludes flood; see flood insurance.
- Liquor liability if you have a bar or serve wine with dinner.
- Workers' compensation and DBL/PFL for front desk, housekeeping, kitchen and maintenance staff.
- Commercial auto for a guest shuttle, and hired and non-owned auto for errands in staff cars.
- Cyber for card payments and booking records, employment practices liability once you hire each season, and a commercial umbrella above general liability, liquor and auto. A small inn can package much of this in a business owners policy.
New York's innkeepers' law
| General Business Law | What it says | Why it matters for insurance |
|---|---|---|
| §200, safes | Provide a safe and post notices of it, and you aren't liable for valuables a guest didn't deposit; deposits are capped unless agreed in writing | The limit only protects you if the notices are up |
| §201, guests' property | Caps liability for clothing and belongings; the caps don't apply when the loss is your fault or negligence; post a copy | Claims of staff theft or carelessness fall outside the caps |
| §§202-203, fire and animals | No liability for property in an out-building lost to an incendiary fire without your fault; guests' animals lost in a fire valued at a set cap unless agreed | Barns and stables used by guests need to be on the policy |
| §204, guest register | Keep guests' names, residence and dates for three years | The register is your record when a claim arrives late |
| §205, trafficking training | Train employees likely to deal with guests within 60 days; small owner-occupied places with five or fewer rooms are excluded | A compliance item carriers and buyers ask about |
| §206, posted rates | Post rates with sections 201 and 202; no charges above them or for services not provided | Billing disputes are not insured; posted rates help prevent them |
Health permits, pools and food
Subpart 7-1 of the State Sanitary Code requires a permit from the State or local health department to operate a temporary residence, such as a hotel, motel or cabin colony, occupied by or kept for 11 or more people. The permit lasts up to three years and can't be transferred, so a buyer applies for a new one at least 60 days ahead. A pool, beach or food service run as part of the permitted residence needs no separate permit. On the insurance side, a pool, hot tub, diving board, slide or beach changes the liability rating; carriers ask about fencing, self-closing gates, posted rules and supervision, and may exclude a diving board or surcharge it.
Short-term rentals run as a business
One cottage rented now and then is a landlord insurance question. Several units rented through the season are a lodging business, and the rules stack up:
- State. Real Property Law §§447-a to 447-c cover rentals of less than 30 consecutive days: each unit registered with the county where a county registry exists, the registration number on every listing, posted evacuation diagrams and a fire extinguisher, and liability insurance for claims arising from the rental. Since March 1, 2025, the Tax Department applies sales tax to short-term rental occupancy.
- County occupancy tax. Warren County asks owners of rentals of 30 days or shorter to register with the Treasurer, and a town permit doesn't replace it. Essex County requires each rental to hold a certificate and remit monthly. Ulster County gives hotels, motels and rentals three days after starting to register. Dutchess County registers every hotel, motel, B&B, tourist home and short-term rental, and Columbia County asks for one registration per address, with the City of Hudson handled separately.
- Town permits. Lake George requires a yearly Residential Rental Permit with proof of insurance covering the rental home and a Warren County fire inspection. Saratoga Springs licenses each unit yearly, with proof of insurance and no more than 150 rental days a year. Lake Placid and North Elba issue capped permits, with unhosted rentals kept out of the residential districts and a contact person within a 60-minute drive. Elsewhere in Warren County, Bolton, Chester, Hague, Lake Luzerne and Warrensburg have permits and Queensbury requires county registration.
Insure the units in the name of whoever owns them, the LLC if there is one, on a policy written for short-term rental use. Cleaners who turn units over should carry their own liability and comp; see cleaning services insurance.
A bar in the lobby changes the policy
New York's Dram Shop Act, General Obligations Law §11-101, lets people injured by an intoxicated guest sue whoever unlawfully sold the drinks, and ABC Law §65 bars serving anyone under 21 or visibly intoxicated. In Saratoga Springs, the City's yearly lodging licence asks for a general liability certificate naming the City as additional insured on a primary and non-contributory basis, plus proof of workers' comp and disability. If you host weddings, see event venue insurance.
Seasonal staff
Workers' compensation applies from the first employee, part-time and seasonal included. DBL and Paid Family Leave start once you have one or more employees on each of 30 days in a calendar year. If you house workers, Lake Placid's Local Law 1 of 2026 makes temporary workforce housing a conditional use and requires a State Department of Health permit when eleven or more unrelated people live there; the house needs a policy written as staff housing.
What I need to quote
- Rooms or units, buildings, construction, age, sprinklers and alarms.
- Your season, occupancy and gross receipts.
- Pools, beaches, docks, fire pits and anything you lend guests.
- Food and alcohol: breakfast only, a restaurant, or a bar, and your SLA licence.
- Payroll by role, including seasonal staff, and any staff housing.
- Current policies, any claims, and your town permits.
Once you choose and the policies are in force, I get you the certificates your town or city asks for. Request a quote.
- General Business Law §200, safes and limited liability (NY Senate) — hotel, motel and inn keepers who provide a safe and post conspicuous notices in the office, public rooms and parlors are not liable for undeposited money, jewelry and similar valuables; liability for deposits capped unless a special written agreement; read October 27, 2026
- General Business Law §201, liability for clothing and other personal property limited (NY Senate) — caps for guests' property in the lobby, hallways, room or storage; caps do not apply where the loss results from the keeper's fault or negligence; printed copy posted in the office and public rooms; read October 27, 2026
- General Business Law §202, loss by fire (NY Senate) — no liability for guests' property in a barn or out-building destroyed by an incendiary fire without the keeper's fault or negligence; read October 27, 2026
- General Business Law §203, value of animals (NY Senate) — guests' animals destroyed by fire valued at a statutory cap unless a higher value was agreed; read October 27, 2026
- General Business Law §204, register to be kept (NY Senate) — hotels, motels, tourist cabins, camps, resorts, taverns, inns, boarding and lodging houses keep guests' names, residence and arrival and departure dates for three years; read October 27, 2026
- General Business Law §205, human trafficking awareness and training (NY Senate) — lodging facility excludes a building with five or fewer rooms for rent actually occupied as a residence by the proprietor; new employees trained within their first sixty days; records kept; read October 27, 2026
- General Business Law §206, rates to be posted (NY Senate) — post rates with copies of the section and sections 201 and 202; no charges above posted rates or for services not rendered; read October 27, 2026
- 10 NYCRR §7-1.1, definitions (Cornell LII) — temporary residence: hotel, motel, cabin colony or other structures including worker housing maintained primarily for overnight occupancy; permit-issuing official is the State or a city or county health officer; read October 27, 2026
- 10 NYCRR §7-1.2, applicability (Cornell LII) — applies to temporary residences occupied by or maintained for 11 or more people; exemptions include portions occupied by the owner or operator and family and a unit rented in its entirety to a group; read October 27, 2026
- 10 NYCRR §7-1.3, permit for operation (Cornell LII) — no operation without a permit; apply at least 60 days before operation or a change of owner or operator; permit up to three years, not transferable; a pool, bathing beach, spray ground or food service establishment within a permitted temporary residence needs no separate permit; read October 27, 2026
- General Obligations Law §11-101, the Dram Shop Act (NY Senate) — read October 27, 2026
- Alcoholic Beverage Control Law §65 (NY Senate) — no person shall sell, deliver or give alcohol to anyone under 21 or visibly intoxicated; read October 27, 2026
- Chapter 136 License Application: eating and drinking, cabaret, lodging and sidewalk cafe (City of Saratoga Springs) — lodging licence by number of rooms, renewed annually; general liability certificate naming the City as additional insured on a primary and non-contributory basis, City as certificate holder; workers' comp and disability proof or waiver; limits and fees not quoted; read October 27, 2026
- Real Property Law §447-a, definitions (NY Senate) — short-term rental unit: a dwelling unit or room offered for less than thirty consecutive days; read October 27, 2026
- Real Property Law §447-b, short-term rental requirements (NY Senate) — registration, posted evacuation diagram and emergency number, fire extinguisher; host liability insurance for third-party property damage or bodily injury from the rental, from a licensed insurer or excess line broker, which a booking service's insurance may satisfy if equal or greater; no insurer required to provide it; duties apply once the county has a registry; read October 27, 2026
- Real Property Law §447-c, registration (NY Senate) — hosts register each unit with the county or multi-county registry; counties may opt out by local law; registration valid two years; registration number on all listings; read October 27, 2026
- Sales tax on short-term rental unit occupancy (NY Department of Taxation and Finance) — effective March 1, 2025; operators generally register as sales tax vendors; booking services collect on the sales they facilitate; read October 27, 2026
- Short Term Rentals/Occupancy Tax (Warren County Treasurer) — property owners register with the Treasurer's Office; short-term rental is a rental of 30 days or shorter; a town rental program does not replace county registration; returns filed monthly or quarterly; read October 27, 2026
- County Treasurer, occupancy tax (Essex County) — all short-term rentals in Essex County must hold a valid certificate and remit taxes monthly for nights occupied by guests; read October 27, 2026
- Register your Hotel/Motel/Short-Term Rental (Ulster County Department of Finance) — operators of hotels, motels and short-term rentals register no later than three days after commencing business; a Certificate of Authority is issued; read October 27, 2026
- Hotel Occupancy Tax (Dutchess County Department of Finance) — each hotel, motel, bed and breakfast, boarding house, conference center, short-term rental and tourist home used to house guests must be registered with the Commissioner of Finance; read October 27, 2026
- Short-Term Rental (Columbia County Treasurer) — rentals of a building or rooms for under 30 consecutive days register, one registration per address; occupancy tax applies to hotels, motels and short-term rentals; City of Hudson excluded; read October 27, 2026
- Application for Residential Rentals, 2026 (Town of Lake George) — Residential Rental Permit for rentals of less than 30 days, renewed annually; proof of a homeowner's insurance policy covering the rental home; fire code inspection with Warren County; occupancy tax acknowledgment; read October 27, 2026
- Short-term rental regulations by municipality (Warren County) — permits in Bolton, Chester, Hague, Lake George, Lake Luzerne and Warrensburg; Queensbury must register with Warren County; no STR law in Horicon and Stony Creek; Thurman developing one; read October 27, 2026
- Short Term Residential Rentals (City of Saratoga Springs) — licence for each unit rented for less than 30 consecutive days, renewed annually; no more than 150 days a calendar year; proof of insurance; state sales tax registration separate; read October 27, 2026
- Short Term Rentals (Town of North Elba / Village of Lake Placid) — permits through Building and Planning; 24/7 emergency contact within a 60-minute drive; hosted permits in all districts, unhosted not in Town or Village Residential; capped permits and waitlists; read October 27, 2026
- Local Law No. 1 of 2026, amending the Village of Lake Placid/Town of North Elba Land Use Code — Temporary Workforce Housing: conditional use; a NYS Department of Health permit if eleven or more unrelated persons; management plan and lease template with the employer or J-1 sponsor; read October 27, 2026
- Workers' compensation coverage requirements (NY WCB) — part-time, seasonal, temporary and day laborers covered; family members of a for-profit business count as employees; read October 27, 2026
- Disability and Paid Family Leave coverage requirements (NY WCB) — required once an employer has one or more employees on each of at least 30 days in any calendar year, days need not be consecutive; read October 27, 2026
Common questions
Short answers to what people ask before they call.
Still have a question? Call (518) 902-8822 or book a call.
Am I liable if a guest's valuables are stolen from the room?
New York limits it if you follow the rules. Under General Business Law §200, a keeper who provides a safe and posts conspicuous notices of it in the office and public rooms isn't liable for money, jewelry and similar valuables a guest didn't deposit, and liability for deposited items is capped unless you agree otherwise in writing. Section 201 caps liability for clothing and other belongings in the room, lobby or storage, and requires a printed copy of the section to be posted. Neither cap applies when the loss comes from your own fault or negligence. General liability excludes property in your care, custody or control, so guests' belongings need innkeepers' liability cover on the policy.
What records and notices does New York require of an inn or motel?
Section 204 of the General Business Law requires hotels, motels, inns, tourist cabins, resorts and lodging houses to keep a register of each guest's name, residence and arrival and departure dates for three years. Section 206 requires posted room and meal rates, with copies of sections 201 and 202, and forbids charging more than the posted rates or for services not provided. Section 205 requires human trafficking recognition training for employees likely to deal with guests, within their first 60 days; it excludes an owner-occupied building with five or fewer rooms for rent.
Do I need a health permit to run a motel or inn?
Under Subpart 7-1 of the State Sanitary Code, no one may operate a temporary residence, such as a hotel, motel or cabin colony, without a permit from the permit-issuing official, which is the State or a local health department. It applies to places occupied by, or kept for, 11 or more people, with exemptions that include the owner's own living quarters and a single unit rented whole to one group. A permit lasts up to three years and is not transferable, so a buyer needs a new one, applied for at least 60 days ahead. A pool, beach or food service run as part of the permitted residence needs no separate permit.
I own several short-term rentals. Is a homeowners policy enough?
No. A homeowners policy is written for the house you live in, not a rental business. New York's short-term rental law, Real Property Law §447-b, requires a host to carry liability insurance for injury and property damage claims arising from the rental, at least the amount the statute sets, from a licensed insurer or excess line broker; a booking platform's insurance counts only if it is equal or greater. Several units run as a business need a landlord or commercial policy written for short-term rental use, with the LLC that owns them named.
What do I have to register for as a short-term rental operator?
Three layers. Under Real Property Law §447-c, counties that set up a registry require each unit to be registered there, and the registration number goes on every listing. Since March 1, 2025, the Tax Department applies state and local sales tax to short-term rental occupancy, and operators register as sales tax vendors unless a booking service collects for all their sales. Counties with an occupancy tax run their own registration too: Warren and Columbia counties ask for rentals under 30 days to register, Essex County requires a certificate and monthly remittance, and Ulster County gives operators three days after starting. Towns may add a permit.
Do seasonal staff need workers' comp and disability?
Yes. Workers' compensation covers every employee from the first day, part-time and seasonal included, and family members working for a for-profit business count as employees. DBL and Paid Family Leave are required once you have one or more employees on each of 30 days in a calendar year, and the days don't need to be consecutive. If you house seasonal workers, the house needs a policy that knows it is staff housing.
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