Hotel Insurance
A hotel's exposure runs 24 hours a day, and slip, trip and fall is the leading cause of claims for hotel operators. HUB's specialists help lodging clients with hotel liability insurance slip fall prevention programs, multi-stream business interruption (BI) and human trafficking compliance.
Stay Ahead of Industry Challenges
Where your lodging environment creates exposure no other hospitality operation manages in the same way
Across limited-service highway properties, full-service hotels and destination resorts, HUB has worked through the slip-and-fall claims patterns, business interruption (BI) adequacy gaps and human trafficking compliance that intensifies when a hotel's insurance program wasn't built around how a lodging property generates risk.
Slip, trip and fall is the leading cause of general liability (GL) claims for hotel operators because their physical environment concentrates fall conditions: wet pool decks, dark corridors and lobby surface transitions. That exposure is everywhere a guest occupies the property.
HUB structures GL programs with slip-and-fall frequency as the design assumption: GL limits, deductible structures and umbrella layers calibrated to the hotel's property footprint, amenity profile and historical claims frequency, with risk management advisory covering the high-frequency zones the claims data identifies.
The hotels that manage GL costs best treat slip-and-fall as an operational metric, not just a claims metric. The frequency is manageable. The severity is what surprises you when a fall happens somewhere you hadn't considered.
Hotels with GL programs calibrated to their property's specific slip-and-fall exposure profile manage claims frequency and severity as a known variable rather than an annual renewal surprise.
Hotel business interruption catastrophic loss coverage is multi-stream: room revenue, food and beverage, meeting space and ancillary income all stop when a catastrophe (CAT) event closes the property. A BI program sized against room revenue will be underinsured when recovery extends into a changed construction market.
HUB's hotel property programs use CAT modeling to size hotel business interruption catastrophic loss coverage based on the portfolio's actual exposure, so BI limits reflect the full revenue base rather than a rooms-only projection. Parametric insurance provides post-event liquidity settling in 10 to 30 days.
Most hotel operators aren’t thinking about whether their BI policy reflects what the property earns when all revenue streams are running. In CAT-exposed markets, that conversation should happen before every season.
Hotel operators with BI programs designed against their full multi-stream revenue profile and CAT programs informed by actual exposure modeling enter peak season with coverage that reflects the financial reality of a closure event.
Hotels and motels are among the top human trafficking venues. Most provinces have passed laws with financial or criminal penalties for hoteliers who fail to prevent or report trafficking. Compliance now intersects with the insurance market, and underwriters are evaluating whether properties have prevention programs.
HUB's hotel advisors help operators build the prevention programs and underwriter documentation that satisfy both the legal obligation and the carrier's evolving requirements, including staff training, incident recognition protocols, management oversight documentation and claims advocacy expertise.
The hoteliers who get ahead of this are protecting themselves from regulatory exposure as well as their coverage terms. Carriers are paying attention to which properties have programs and which don't.
Hotels with documented human trafficking prevention programs, trained staff and management oversight in place demonstrate to underwriters the due diligence that satisfies both provincial law obligations and the carrier expectations increasingly shaping hotel coverage terms.
Tailored Risk Solutions for Your Industry
How HUB coordinates guest-facing liability, multi-stream property protection and prevention program advisory for your hotel operation
A hotel's risk comes from three places at once: a 24-hour guest-facing physical environment, a complex revenue base and a specific statutory compliance obligation no other hospitality operator faces. HUB's hospitality specialists coordinate all three dimensions under one program relationship.
General liability for a hotel is not a standard commercial GL policy with a hospitality endorsement. The hotel's physical environment — pool decks, guest corridors, lobby surface transitions, bathroom fixtures, fitness centers and parking structures — creates a GL exposure profile that slip-and-fall claims dominate, requiring program design built around that frequency. GL limits, deductible structures and umbrella or excess layers are coordinated for the hotel's specific property footprint and amenity profile. Full-service hotels and resorts add liquor liability for bar, restaurant and room service operations and food spoilage and contamination coverage for multi-outlet food & beverage (F&B) operations. Commercial auto coverage for shuttle fleets, valet programs and employee vehicle use completes the mobility-adjacent GL profile. For hotel ownership groups managing multiple properties under shared ownership, the GL and umbrella program is designed to aggregate exposure across the portfolio rather than placing each property independently.
Hotel property insurance CAT modeling and commercial property program design address values that combine lodging infrastructure, food service facilities, recreation amenities, meeting space and parking into a single asset whose reconstruction value often exceeds what its annual premium reflects. Property program design for hotels requires equipment breakdown coverage for heating, ventilation and air conditioning (HVAC) and kitchen equipment, builder’s risk during renovation and inland marine coverage for specialized hotel equipment. Business interruption for hotels must reflect the full multi-stream revenue base: room revenue, food and beverage, meeting and event space, spa and ancillary income all stop simultaneously when a CAT event closes the property. HUB's CAT modeling capability produces BI limits and deductible structures informed by the true financial exposure rather than historical occupancy projections. Parametric insurance provides immediate post-event liquidity settling in 10 to 30 days against a measurable weather index while the traditional property claim proceeds through adjustment.
Human trafficking compliance is an active statutory obligation in most provinces and an evolving underwriting consideration. HUB's hotel advisors support operators in building the prevention infrastructure that satisfies both requirements: documented training programs, incident recognition protocols, management oversight and reporting procedures that position a property to demonstrate compliance at renewal. Employment practices liability (EPL) covers the wage-and-hour, harassment and wrongful termination exposure of a large, diverse hotel workforce.
HUB's Impact
What hotel-specialist insurance looks like when a slip-and-fall pattern is caught early, a weather event tests your BI program and an inspector asks for trafficking training records
A hotel's insurance program is tested when a GL claims pattern has changed the underwriter's position, when a CAT event generates concurrent structural and revenue losses and when a provincial compliance review triggers a human trafficking documentation request.
Case Studies
Industry Insights
Insights and resources on hotel risk management from HUB's Hospitality practice
