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Part 3 of The Industry Risk Series: Smart Insurance Moves for Today's Business Owners

  • jboynton96
  • Aug 18, 2025
  • 2 min read


Risk-Proofing Your Hotel: Coverage Every Hospitality Business Needs


Whether you're running a boutique hotel, a thriving restaurant, or a high-traffic event venue, one thing is certain: in hospitality, everything is on the line every day. A slip in the lobby, a liquor-related incident, a data breach, or an HR complaint can put your entire business at risk.


That’s why having the right insurance coverage isn’t just smart—it’s essential.


At Coastline Risk, we specialize in helping hospitality businesses stay protected from the risks that come with serving the public. Here’s a breakdown of the key coverages every hotel and hospitality operator should have—and what happens when you don’t.


1. Property Insurance: More Than Just a Building


Whether it's storm damage, fire, or a burst pipe, property damage can mean weeks—or months—of lost revenue. Hotels and restaurants can’t operate without functioning kitchens, clean rooms, or common areas.


💡 Pro Tip: Make sure your policy includes Business Interruption coverage so you're protected from income loss during repairs or closures.


2. Liquor Liability: Serving Alcohol = Serving Risk


If your bar over-serves a patron who causes an accident, your business could be held liable—even if the incident happens off premises.


  • This is especially crucial for hotels with lounges, catered events, and wedding venues.

  • Many general liability policies exclude liquor-related incidents unless you carry a dedicated liquor liability endorsement.


💡 Liquor liability lawsuits can easily reach six figures. Don’t pour without a policy in place.


3. Cyber Liability: Yes, You Need It


Hospitality businesses are prime targets for cybercrime. You collect customer names, credit card numbers, and reservation data—all of which hackers want.


  • A breach could mean paying for credit monitoring, lawsuits, and regulatory fines.

  • Cloud-based booking platforms and POS systems are common entry points for cybercriminals.


💡 If your front desk or online booking system gets hacked, cyber insurance helps cover recovery, legal defense, and customer notification costs.


4. EPLI (Employment Practices Liability Insurance)


In an industry where hiring, turnover, and customer interaction are constant, EPLI protects you from employee claims related to:


  • Harassment

  • Discrimination

  • Wrongful termination

  • Wage and hour disputes


Even if the claims are baseless, legal fees can quickly escalate.


💡 EPLI is one of the most overlooked coverages in hospitality—until someone files a claim.


How Coastline Risk Helps You Cover Every Angle


We know the hospitality industry is about experience, efficiency, and reputation—and we’re here to protect all three. At Coastline Risk, we provide:


  • Tailored insurance packages for hotels, restaurants, and event venues

  • Access to top-rated hospitality carriers

  • Guidance on risk-reducing procedures to lower premiums

  • Ongoing support to keep your coverage aligned with changing operations


In hospitality, the smallest oversight can lead to the biggest fallout. But with the right insurance partner, you don’t have to worry about what’s next—you’ll already be covered.


🏨 Risk-proof your hospitality business with confidence—Coastline Risk has you covered.





Contact Us Today: (617) 500-1824. / info@coastlinerisk.com


Protect your business, your team, and your projects with Coastline Risk. We're here to help you navigate the complexities of the insurance industry and secure the coverage you need to succeed. 


Learn more At Coastlinerisk.com




 
 
 

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