Hospitality

The hospitality industry is a broad category made up of dozens of business types. Any operating model that invites members of the public to eat, sleep, or take part in a leisure activity falls under this category, including:

• Accommodation services: Hotels, luxury resorts, motels, lodges, bed and breakfasts, and inns.
• Dining and leisure: Restaurants, bars, movie theaters, and spas.
• Activity-oriented businesses: Golf courses, sailboat rental, bicycle rental, horseback riding, skiing, amusement parks, and indoor water parks.

Due to the distinct risks associated with each of these categories, hospitality businesses can benefit from a unique coverage and risk management strategy designed to protect guests, staff, property, and revenue.

Organizations within the hospitality sector will need coverage similar to standard business policies. This includes traditional areas of risk, such as fire, theft, and vandalism, and property insurance for the physical structure of your business.

However, you’ll also need to consider coverage for the more unique aspects of your business model, including:

• Business interruptions: Equipment breakdown insurance helps you get up and running as soon as possible in the event that something stops working or if you experience a power outage, storm, or natural disaster. For example, if refrigeration equipment fails and you have to dispose of large quantities of food, this will help you repair systems and replace lost goods as quickly as possible.
• General liability: This includes areas of risk such as injuries and food contamination that are more likely to happen given the environment of a hospitality business.

Additional considerations should be factored into a comprehensive risk management strategy, including mandatory workers' compensation, liquor-related liabilities, and cybersecurity coverage. Business leaders are advised to assess their operating model to identify core areas of vulnerability.