Hospitality – Hotels, Motels, Bars & Restaurants
Types of Healthcare Professionals We Can Insure:
- Hotels
- Restaurants
- Motels
- Bars
- Breweries
- Wineries
- And More…
Understanding Liability Insurance for Hotels and Restaurants
Operating a hotel or restaurant comes with unique risks that can have serious financial consequences. From slip-and-fall accidents in a lobby or dining area to foodborne illnesses, property damage, or disputes with guests, incidents can happen quickly and unexpectedly. Without proper protection, a single claim could cost your business thousands—or even millions—of dollars.
Liability insurance is designed to safeguard your business against these risks. It covers legal defense costs, settlements, and damages if your business is found responsible for injury, property damage, or other claims. This includes situations like a guest being injured on your premises, a customer experiencing food-related illness, or accidental damage to client property during an event or stay.
Hotels and restaurants also face additional exposures, including employment-related claims, liquor liability, and third-party property damage. A comprehensive liability insurance program can help address these risks and provide peace of mind, ensuring your business can continue operating smoothly even when the unexpected occurs.
Investing in liability coverage isn’t just about compliance—it’s about protecting your reputation, your guests, and your bottom line. With the right policies in place, you can focus on delivering exceptional service and memorable experiences while knowing your business is covered.
Understanding Liquor Liability Insurance for Hotels and Restaurants
Hotels and restaurants that serve alcohol face unique risks that go beyond standard liability exposures. From over-served patrons causing accidents to alcohol-related injuries on or off your premises, liquor-related incidents can quickly result in costly claims and legal action.
Liquor Liability Insurance provides coverage for claims arising from the sale or service of alcohol. This includes situations such as a guest causing a car accident after leaving your establishment intoxicated or a fight breaking out in your bar or event space. Without this coverage, your business could be held financially responsible for medical bills, legal fees, or settlements.
For hotels and restaurants, liquor liability is an essential part of a comprehensive risk management strategy. It not only protects your business from unexpected alcohol-related claims but also ensures compliance with state liquor laws and licensing requirements.
Understanding Employment Practices Liability Insurance for Hotels and Restaurants
In the hospitality industry, employees are at the heart of your business—but managing a large and diverse workforce also creates potential risks. Hotels and restaurants often face employment-related claims such as wrongful termination, discrimination, harassment, retaliation, or wage and hour disputes. Even when allegations are unfounded, the cost of defending your business can be significant.
Employment Practices Liability Insurance (EPLI) helps protect hotels and restaurants from these risks by covering legal defense costs, settlements, and judgments related to employment claims. With staff turnover, seasonal hiring, and high employee interaction common in the hospitality industry, EPLI is an essential safeguard for both small and large operations.
In 2024, the average legal defense cost for Employment Practices Liability Insurance (EPLI) claims in the hospitality industry is approximately $75,000, even for cases that are dismissed before trial. This figure underscores the significant financial risk that hotels and restaurants face when defending against employment-related lawsuits, such as wrongful termination, discrimination, or harassment claims.
Given the high turnover rates and dynamic work environments typical in the hospitality sector, these establishments are particularly vulnerable to EPLI claims. Without adequate EPLI coverage, the costs associated with defending such claims can be financially devastating, potentially jeopardizing the business’s operations and reputation.
Without proper coverage, a single employment-related lawsuit could harm your business’s finances and reputation. With EPLI in place, you can focus on running your hotel or restaurant with confidence—knowing your team and your business are better protected.
Understanding Cyber Liability Insurance for Hotels and Restaurants
Hotels and restaurants collect and manage a large amount of sensitive data every day. From guest credit card information and personal details to online reservations, payment processing, and employee records, the hospitality industry is a prime target for cyberattacks and data breaches. A single incident can result in significant financial loss, legal liability, and damage to your reputation.
In 2024, the average payout for cyber liability insurance claims in the United States was approximately $100,000, according to Coalition’s 2024 Cyber Claims Report. This figure reflects a 10% year-over-year increase in claim severity, indicating that cyber incidents are becoming more costly to resolve.
For small and medium-sized enterprises (SMEs), including many hotels and restaurants, the average cyber insurance claim cost was about $345,000 over the past three years. These businesses often face significant financial challenges due to limited resources and high exposure to cyber risks.
Why Medical Groups Should Carry Management Liability Insurance
Medical groups face unique challenges in balancing patient care, staff management, and regulatory compliance. Leaders and managers within these organizations make decisions that directly impact employees, patients, and the financial health of the practice. Even with the best intentions, decisions can lead to allegations of mismanagement, wrongful acts, or regulatory violations, which can result in costly lawsuits or investigations.
Management Liability Insurance provides protection for medical groups, their executives, and board members against claims arising from decisions made while managing the organization. This coverage typically includes legal defense costs, settlements, and judgments related to:
- Employment practices – wrongful termination, harassment, discrimination, or retaliation claims from staff
- Fiduciary duty breaches – errors in managing employee benefits, retirement plans, or organizational finances
- Regulatory compliance – investigations or claims related to HIPAA violations, CMS regulations, or other healthcare rules
- Administrative decisions – allegations of mismanagement, poor operational choices, or financial missteps
For example, a manager may face a lawsuit alleging wrongful termination of an employee, or a board member may be accused of mismanaging funds for a retirement plan. Without management liability insurance, defending against such claims could be financially devastating, even if the allegations are unfounded.
By carrying management liability insurance, medical groups can protect their leadership, safeguard organizational assets, and maintain focus on providing quality patient care—knowing they have coverage in place to handle unforeseen claims and legal challenges.
Protect your medical group and its leadership team with management liability coverage tailored for healthcare organizations.
Cyber Liability Insurance is designed to help protect your business from these growing digital risks. Coverage typically includes expenses related to:
- Data breaches – covering the costs of notifying affected guests, providing credit monitoring, and handling regulatory fines.
- Ransomware attacks – helping cover the costs to recover or restore systems that have been encrypted or locked by cybercriminals.
- Business interruption – compensating for lost revenue if your systems are down due to a cyber incident.
- Legal defense and settlements – covering lawsuits resulting from compromised data or privacy violations.
- System restoration and crisis management – assisting with technical support and public relations to restore operations and maintain trust.
Common cyber incidents in hotels and restaurants include:
- A hacker gaining access to reservation systems and stealing guest credit card information.
- Malware infecting point-of-sale systems, compromising payment data during peak business hours.
- Employees falling victim to phishing scams, exposing sensitive payroll or customer information.
- Unauthorized access to guest Wi-Fi networks that leads to data breaches or identity theft.
Given the high volume of transactions and the reliance on digital systems in hospitality, even a minor breach can escalate quickly into a major financial and reputational issue. Cyber Liability Insurance provides peace of mind by helping your business respond effectively, cover financial losses, and maintain operations during and after a cyber incident.
Protect your guests, your employees, and your business with comprehensive cyber liability coverage tailored for the hospitality industry.
Why Hotels and Restaurants Need Workers’ Compensation Insurance
In the hospitality industry, employees are constantly on the move—serving guests, preparing food, maintaining facilities, and keeping operations running smoothly. With this fast-paced environment comes an increased risk of workplace injuries, from slips and falls to burns, strains, or accidents in the kitchen or on the property.
Workers’ Compensation Insurance helps protect both your employees and your business by covering medical expenses, rehabilitation costs, and lost wages if an employee is injured on the job. It also provides employers with legal protection against costly lawsuits related to workplace injuries.
For hotels and restaurants, workers’ comp is more than just a legal requirement in most states—it’s an essential way to show your employees you value their safety and well-being while safeguarding your business from unexpected financial strain. Please consult your attorney or state’s workforce development department to understand your legalities about whether you are required to carry workers compensation insurance or not.
Why Some Hotel and Restaurant Owners Choose Disability Insurance Over Workers’ Compensation
While workers’ compensation is required to protect employees, business owners themselves often have the option to opt out of coverage. Many hotel and restaurant owners choose to purchase Disability Income Insurance instead, as it is specifically designed to replace their personal income if they are unable to work due to injury or illness.
Unlike workers’ compensation, which only covers work-related injuries, disability insurance provides broader protection—covering both work-related and non-work-related health issues that could prevent an owner from managing daily operations. This ensures a steady stream of income to help cover personal living expenses, family needs, and even business obligations during recovery.
For owners in the hospitality industry, where long hours and physical demands are common, disability income insurance offers an extra level of financial security and peace of mind, ensuring that personal finances remain stable even if they can’t be on the job.
Understanding Commercial Liability Umbrella Insurance for Hotels and Restaurants
Hotels and restaurants face a wide range of risks every day—from slip-and-fall accidents and foodborne illness claims to property damage, employment disputes, and liquor-related incidents. While standard liability policies provide essential protection, serious claims or multiple lawsuits can exceed the limits of these policies, leaving your business vulnerable.
A Commercial Liability Umbrella Policy acts as an extra layer of protection above your existing liability coverage. It increases the limits of your policies, helping cover large claims or catastrophic losses that could otherwise threaten your business’s financial stability. For hotels and restaurants, this means additional protection for incidents like:
- A major slip-and-fall accident involving multiple guests.
- A large-scale foodborne illness outbreak affecting dozens of patrons.
- Significant property damage during an event or banquet.
- Multiple simultaneous liability claims, including general, liquor, or employment-related claims.
By carrying an umbrella policy, hotels and restaurants can enhance their existing liability coverage, safeguard their assets, and maintain peace of mind knowing they’re prepared for unexpected, high-cost claims.