Joseph Fobert, Brooks W. Chase
November 2014
The hospitality industry faces a unique set of risk management challenges as it strives to provide the services and amenities that guests demand for their travels and vacations. For hotels, motels, resorts and casinos, the risks encompass everything from slip- and-fall incidents to food-borne illness, transportation liabilities and cyber threats. Some risks are heightened by the typically high turnover of employees and large numbers of part-time workers within the industry.
New risks are always appearing and, as regulations and trends change, even familiar exposures may present new challenges. It is important that owners and managers of hospitality properties keep current with emerging liability trends and develop risk management strategies to address them. That should include seeking expert advice when necessary and reviewing their primary and excess insurance coverage, particularly since liability awards and settlements can reach well into the millions of dollars in cases involving bodily injuries to guests and others.
The emerging exposures in the industry include food safety, indoor air quality, bed bugs, liquor liability, transportation, access for disabled guests, cyber security threats and even the use of premises for manufacturing illegal drugs. By taking the appropriate steps, hospitality companies can make sure that their risk management strategy keeps pace with these evolving challenges.