Addressing the Liabilities of the Hospitality Industry

hospitality industry

The hospitality industry offers great possibilities, but it also faces complex risks. From restaurants to night clubs and bars to hotels, the atmosphere speaks to fun and relaxation but the scenarios are ripe for mishaps. Responsible managers and owners choose to be proactive and embrace prevention instead of responding after an accident occurs. In addition to carrying hospitality insurance, those who operate hospitality venues should take steps to assess potential threats to guests and employees. Address problems before something happens, focusing first on the most predictable sources of hospitality liability claims.


More advanced security measures not only help mitigate risks, but they also indicate your efforts to keep the public safe should a claim occur. An example of security precautions is CCTV cameras. Make sure guests and employees know these cameras are present to avoid privacy claims. Give visitors security information when they check in and enter or clearly post signs.

As digital activities increase, cyber security is another important aspect of keeping guests safe. This is especially true for hotels, restaurants, and bars. Your digital interface should be secure, and security measures and programs should be regularly inspected by IT security experts.

Communal Areas

In communal areas, there are always risks of disagreements and even fights breaking out. Inebriated guests set up a number of potential problems. Guests enjoy swimming pools, but you must work to keep them safe by predicting possible problems, including:

  • Slips and falls in pool areas, especially by children
  • Malfunctions of diving boards, ladders, and steps due to damage
  • Unclear markings for water depth

Learn the laws in your area covering difficult situations that can arise from guest behaviors.


For hotels, slips and falls are the most common danger within guest rooms. Avoid overcrowding rooms with furniture and decorations, instead choosing the necessary items such as a bed, a desk and chair, and a dresser. Keep pieces simple and serviceable. Avoid small, fussy decorations that children can swallow. Be clear about smoking policies. Consider using plastic shower curtains rather than glass in bathrooms. In-room mini bars and proffered snacks pose the potential risk of poisoning. Make sure bottles and food are sealed, and check the expiry dates on everything regularly.


Kitchens and food preparation areas are potential sources of food poisoning. Ensure foods are covered and stored properly. A good practice is to keep a checklist of food handling best practices for kitchen personnel to follow. Other risks are burns from hot pans and food warmers if you serve buffet-style meals. Avoid serving raw eggs to reduce the risk of guests contracting salmonella.

What Is Hospitality Liability?

Hospitality owners and managers are not on their own. Quality hospitality insurance provides a financial safety net should an accident occur. These specialized policies are geared to the unique risks of this industry and protect venues against catastrophic losses from claims. In addition, some providers inspect properties, offer suggestions for risk mitigation, and provide classes and seminars about safety practices.

About the Hilb Group 

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.