Insurance policy caters to hotel, guesthouse and bed and breakfast owners.

Direct Line has launched a new insurance product for hotel, guesthouse and bed and breakfast owners.

The cover includes public and products liability cover up to £2 million as standard, up to £500,000 cover for loss of income, and several add-on options such as personal accident and loss of license.

The small hotel insurance policy has been developed for owners of single premises with up to 12 rooms to let. It is available via the umbrella brand Direct Line for Business, which is an addition to the suite of products launched last autumn.

Other products launched this spring include cover aimed at home businesses, offices, surgeries, pubs and restaurants.

Kate Syred, head of Direct Line for Business, said: "Whether a boutique hotel in London or a small bed and breakfast at the seaside, owners can now take advantage of the benefits of being a Direct Line customer with a product designed specifically for the smaller proprietor."