I too have never heard of a 5 million dollar policy either. What does this hotel need to do if something does happen? Build a new wing for 5 million dollars to attach to the hotel?
The latest in lawsuits - in which hopefully someone had insurance. Note that they discuss The Station fire, which killed 100 - the result of one's idea to use of a small piece of pyrotechnics.
Also keep in mind, The Station fire resulted in at least $115 million being paid out from various companies and organizations that were dragged into the lawsuit.