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The Scope of Risks Faced by the Hospitality Industry

Risk is inherent in any industry, and the hospitality sector is not immune to any common risk faced by a business. From data breaches to poorly behaved guests, there is no shortage of potential exposures for owners and operators of hotels. In our last blog, we covered crisis management so you can be prepared to handle the worst case scenario. This time, we’re going to dive deeper into managing everyday risks. Before reading on, remember that a Miami Hospitality Insurance program is your first line of defense should anything go awry.

Cyber security threats.

Hotels collect a lot of information about their guests to insure themselves against damages and to fuel their own rewards programs. This makes them popular targets among cyber criminals and hackers, as a single breach could result in hundreds or even thousands of pieces of guests’ personal information (names, addresses, social security numbers, etc.) and payment details being compromised. Because of this, they need to make sure this data is protected against fraudsters.

Your hotel should take proactive steps into protecting customer’s personally identifiable information, credit card details and billing addresses. If not, you’re on the hook for damages resulting from lawsuits against your establishment.

Staff turnover.

As the economy improves, your staff is more likely to become motivated to work elsewhere, or worse, be poached by your competitors. Your valuable staff is the backbone to your operation, so ensure you evaluate their satisfaction levels, offer competitive pay and benefits, and provide opportunities for them to grow with you as a company.

Another risk is internal theft. As your employees have access to customer data and company assets, it’s potentially easy for them to steal from you. Be sure to conduct thorough background investigations as part of a tedious hiring process to deflect internal theft. In addition, you can add security cameras to monitor employees round the clock.

Rowdy guests.

Damage to hotel rooms and injuries sustained on your property can add up quickly. One or two things stolen in each room might seem insignificant, but when viewed on a grand scale, can result in thousands, if not more, in loss each year.

If someone becomes injured on your property, you can also face severe lawsuits. To prevent these types of claims from occurring, implement a system of best practices and housekeeping. If there is a report files, tend to it quickly. Hotels should have internal controls in place to handle guest destruction and ensure travelers’ safety during their stay. Small things, such as closer management of property and resources, can prevent incidents like this from happening in the first place.

About Advanced Insurance Underwriters

At Advanced Insurance Underwriters, we offer specialized programs to safeguard small business owners like you. From general liability to cyber liability protection, we have the solutions you need to thrive. For more information about our products, give us a call today at (800) 660-7734.