Prevalent Lawsuits in Hospitality Industry

hospitality industry

Even though running a hospitality business is considered a highly rewarding job, there are potential downsides to providing families with a great vacation or keeping professionals comfortable while on a business trip. The hospitality industry faces a number of serious liabilities that could ultimately bring litigation against an organization. The end results of these court battles could financially destroy your company and damage your reputation in the industry. While working with a broker for hospitality insurance is one way to prevent total loss, knowing the risks you face is also important.

What Are Some Common Hospitality Industry Lawsuits?

Awareness of the more common lawsuits hospitality businesses encounter allows you to put precautions in place. A robust risk management strategy can help you avoid legal problems.


Physical harm is a serious concern for those who stay in hotels or other lodging facilities, and though these incidents don’t seem common, the media publicity of the armed robbery Kim Kardashian experienced in Paris revealed that hotel guests can be victims of a crime. Assault includes a broad range of situations, including prostitution, domestic abuse, predatory behavior, or physical harm during an act of theft. Installing modern security requirements, thoroughly training employees and relying on skilled security guards can help reduce these risks.

Premises Liability or Intentional Tort

Restaurants, bars and clubs are a part of the hospitality industry, and when alcohol is served, the exposures in the area of premises liability climb. Clients who have consumed too much alcohol have reduced decision-making abilities and slower reaction times, making slips, trips, falls, fights and aggressive behaviors more likely. Clients who are injured during the course of their time in your establishment can sue for damages due to personal injury or premise liabilities.

Disabilities Act Violations

It is important for any business in the hospitality industry to fully comply with the various aspects of the Disabilities Act. Failing to provide amenities that increase the accessibility of the property for those with disabilities is grounds for a lawsuit. Because of the wide range of disabilities to address, it’s advised that you consult a hospitality expert who is familiar with the Disabilities Act to ensure your property is fully compliant. Pool lifts, wheelchair ramps and handicap accessible rooms are just a few of the features needed.


There are a number of situations that could cause injury to a guest or damage to their property that may be covered under a general negligence lawsuit. In these cases, the victim argues that the business did not exercise reasonable care in providing a safe and secure environment for the guest.

How Can You Address the Legal Issues That Affect the Hospitality Industry?

It is better to be proactive in addressing these legal concerns than hope you’ve retained a good attorney. A risk management strategy and comprehensive liability insurance are strong protections against these legal issues.

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.