Hard to imagine how botox could become a risk to your hotel business, but if a spa operating on your hotel premises is selling botox treatments to your guests, beware. Most hoteliers don’t often connect the dots between their hotel business and the businesses of those vendors who have set up shop on hotel property. But botox, laser treatments, even nail salons doing business independent of your hotel business pose an exposure to lawsuits to your hotel.

With more amenities being heaped on guests and more hotels eager to partner with guest service providers in an attempt to woo said guests, the risks of such partnerships are often overlooked. Service providers such as spas, hair salons, personal trainers, medical services come with their own sets of risks, including the risk to the health and safety of your guests. Consider that if your hotel brochures or in-room promotions of either your establishment or that of the vendors is presented to your guests as additional services, you face liability for nearly any claim waged against the vendors.

In fact, some vendors’ insurance policies may state third-party liability, which could indeed include your hotel, as a responsible party. Let’s not forget the risk to your reputation, your brand, or your daily operations. Hotel guests don’t want to stay in a hotel that promotes spa treatments that can harm or cause their death.

Despite your own liability coverage, there could be a gap in coverage that leaves your establishment exposed to claims. Your guests, while staying on your property, engaged in commerce with vendors you have a business relationship with. Without proper coverage excluding you from liability, you could be facing the same risks of business without any of the control over the vendors’ business operations.

What does your own insurance policy say about third-party risk? Have you amended or replaced your coverage since taking on these on-site vendors? If not, talk with your broker. Brokers with a specialized background in hotel operations can assist you in putting together a comprehensive insurance package that alleviates the risks of offering your guests more amenities.

Flickr photo credit: dangodin