Hotel Liability: Some Typical Exposures
by Tomlin Insurance Brokers
At Tomlin Insurance Brokers, we strive to provide valuable insights and support to our hotel clients. As part of our commitment to your business, we have prepared a guide highlighting potential exposures that may not be covered, have limited coverage, or could potentially exceed policy limits.
We believe that being aware of these exposures will help improve the overall risk profile of your establishment, ensuring the protection of your guests and assets.
Potential Exposures That May Not Be Covered, Have Limited Cover, or Could Potentially Exceed Policy Limits:
1. Commissions on Tours and Activities
If collecting commission from third parties for guest activities, carefully asses if these activities are covered by your insurance. Tip: Obtain proof of operators’ insurance annually.
2. Hired Cars:
Only contract with reputable companies with documented insurance coverage on hired cars. Train concierge staff to source vehicles from approved companies only.
3. Jet Skis:
Avoid any association with jet ski operations and refrain from recommending jet ski or motorized watersports operators to guests.
4. Contractors and Construction:
Request evidence of insurance from contractors, including public liability and employers’ liability coverage. Ensure contractors comply with fire precautions and implement a Contractor’s Hot Work Permit if welding.
You must advise your broker on any construction at the hotel.
5. Change in Activities:
Inform your insurance broker of any changes in activities offered that deviate from normal onsite hotel services, as the policy may not cover them.
Exposures That Would Likely Be Covered (But Can Be Avoided):
1. Hotel Proprietors Act:
Display the Schedule of the Hotel Proprietors Act prominently to limit liability for loss or damage to guests’ property and benefit from its provisions.
2. Fire Evacuation Plan:
Have a detailed and rehearsed evacuation plan to reduce the risk of fire-related liability.
3. Chairs on Casters:
Place carpeted mats beneath chairs or use chairs designed for hard surfaces to prevent accidents.
Follow local building code guidelines to install handrails on stairs with two or more steps.
5. Handrails and Mats for Tubs:
Fit luxury block tubs with handrails and non-skid mats to reduce slip and fall incidents.
6. Bollards to Protect Natural Gas Supply:
Place metal bollards in front of the natural gas meter to prevent damage from vehicle impact.
7. Pool Signs:
As specified by swimming pool regulations, display warning signs near unsupervised swimming pools.
8. Car Park Liability:
Post insurer-approved disclaimers in hotel car park areas to mitigate liability risks.
These recommendations aim to help our hotel clients identify potential risks, address insurance coverage concerns, and improve overall risk management strategies.