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Insurance and Risk Management Solutions for Hotels, Motels and Resorts

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Helping Lodging Operators Manage Risk

Hotels, motels, and resorts face diverse risks that go beyond storm damage or slip-and-fall hazards. Features like breakfast buffets and pools enhance guests’ experience but also affect your insurance requirements. Do you have the coverage you need?

Why Lodging Businesses Need Specialized Insurance Protection

Underwriters evaluate lodging businesses differently from other commercial properties. Here are five of many factors they analyze to determine your risk profile: 

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  • Location: In addition to threats like earthquakes, floods, and wildfires, insurers consider guest safety, accessibility, and the likelihood of high occupancy rates
  • Building age and condition: Older properties may have maintenance or safety issues that could impact insurance costs
  • Occupancy: The number of guests you host affects your potential for liability claims
  • On-site amenities: Features like fitness centers and valet parking increase the chances of guest injury or property damage
  • Events: Hosting weddings, conferences, or other large gatherings introduces risks like event cancellations and catering safety

The hospitality specialists at Brown & Brown help you design insurance and risk management strategies for your specific operations.

Key Hospitality Risks

Has your business recently evaluated the following threats from an insurance and risk management perspective?

  • Climate change: Greater frequency and severity of natural catastrophes are increasing the risk of property damage and business interruption
  • Cybersecurity: Cybercriminals target the digital systems you rely on for bookings and operations, leading to potential data breaches
  • Liquor liability: Over-serving guests increases legal risks, so you need strict service protocols and staff training to mitigate this
  • Active assailant incidents: Advance preparation helps protect guests and staff in the event of a shooting or other violent act on the premises
  • Human trafficking: Your business faces legal and reputational consequences if criminals use your property for human trafficking
  • Mental health of staff: Increased stress and burnout among hospitality staff can elevate the risk of workers’ comp and other employment-related claims

How would your insurance respond to these scenarios? Do you need to implement prevention strategies, safety protocols, monitoring, evacuation plans, or other measures to reduce risks?

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Tailored Risk Management Strategies for Lodging Businesses

A successful risk management program extends beyond simply meeting insurance requirements. It involves creating a safe and secure environment for everyone on your property — guests and employees. Some key strategies include:

  • Workplace safety: From heat illness prevention in the laundry room to proper lifting techniques for housekeeping staff, prioritizing employee well-being can reduce the frequency of workers’ compensation claims. Brown & Brown can help you develop an injury prevention plan to meet your state’s OSHA requirements.

  • Valet and parking: Clear policies for vehicle handling and careful hiring processes help prevent accidents or thefts that could result in operational or legal challenges.

  • Emergency preparedness: Your staff needs guidance and practice on how to handle evacuations and medical emergencies. Clear signage, functioning safety equipment, and an emergency action plan can reduce risks significantly.

  • Maintenance protocols: Routine inspections and servicing of electrical and plumbing systems can help minimize the risk of accidents or business disruptions.
  • Property hardening: Depending on your location, certain upgrades may improve your risk profile. Examples include impact-resistant windows, reinforced doors, advanced security systems, perimeter fencing, and enhanced lighting.

  • Pool and spa maintenance: Regularly test water chemistry to prevent illnesses caused by bacteria. Install anti-entrapment drain covers and make sure lifeguards have proper training.

  • Legionella prevention: Water systems, such as showers, hot tubs, or HVAC systems, can harbor Legionella bacteria. Routine water testing, proper temperature control, and cleaning protocols can protect against outbreaks.

  • Cleaning and pest control: Maintain rigorous sanitation protocols and conduct regular inspections to prevent bedbug infestations. Use mattress encasements and train staff to identify early signs of bed bugs. Engage a pest control professional for prevention and swift remediation.

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Helping You Take Control of Your Insurance Outcomes

Brown & Brown understands the broad risks associated with caring for guests. We help you:

  • Understand local insurance regulations: Keeping you informed of changes that could impact coverage or rates
  • Evaluate your business operations: Helping identify and find insurance solutions for your true exposures
  • Align coverage: Meeting lender, landlord, and franchisor requirements
  • Navigate claims: Guiding you through the claim process so you can return to normal operations as quickly as possible after a loss

Securing adequate protection at a manageable cost is a primary financial challenge for hospitality operators. We work with you to find innovative solutions for your specific business needs.

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Schedule a consultation with the Brown & Brown team to review your lodging insurance program. Learn how Brown & Brown can help you mitigate risks, protect your staff, and deliver the best guest experience possible.

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