APC is launching a new policy which it says will help hoteliers and guest house owners benefit from the expected surge in tourism at the London 2012 Olympics.

The commercial MGA said its new area rated hotel and guest house product will allow UK proprietors of small guesthouses to large hotels to take advantage of the hike in tourists in the UK.

The new product, launching on June 6, will cover risks up to £10m sum insured with no limit on bedroom numbers. The minimum premium is £400.

APC underwriting director, Ian Russell said: “The hotel and guest house sector is set to benefit from increased bed occupancy rates as tourists flock to the UK.

"By launching a cost effective and flexible product that offers a wide range of cover and extensions we aim to help proprietors to safely profit from welcoming additional guests while protecting their businesses and livelihoods.”