No doubt about it – 2009 was full of the bizarre news involving hotels. From peeping Tom perps to hotel-based drug operations, hoteliers faced a overabundance of risks well beyond the predictable. With hope of putting the weirdness behind them, hotel owners are looking at 2010 with a slightly jaundiced eye, not sure what risks are still lurking. How has your 2010 been so far?

Hotel owners are also looking at the books. With one of the worst earnings years in recent history now a memory, financial management is priority number one. With profits down anywhere between 16 and 20 percent on average in 2009, growing revenue in a shrinking market is one of the top concerns of the industry. More money is expected to be earmarked for marketing and rebranding. That means spending elsewhere will be cut. Typically, hotel owners look to their insurance premiums for savings, which could be a costly mistake.

As you examine your financial plan for the new year, consider all factors involved in your insurance program. Cutting coverage may save you a few dollars, but in the long run the costs of an uncovered or inadequately covered claim could prove devastating to your bottom line. More risks from the usual sources – employee dishonesty, slip-and-fall injuries, guests behaving badly, even weather-related risks – will continue to increase as economic pressures lower employee morale, as cuts in staff create fewer eyes on accident prevention measures, and as the usual handful of guests find new ways to create liabilities on your property.
Consider a comprehensive check-up for your hotel business. Depending on your property’s amenities, you should complete thorough analysis of the following areas:

• Hotel safety
• Employee background screening
• Evacuation plans
• Employee training
• Regulatory compliance
• Property assessment
• Job hazards
• Guest relations/issue resolution
• Employee retention/motivation
• Food service safety guidelines

Give us a call today to schedule a complete risk analysis and coverage assessment for your hotel business. Make sure this year is the year you build a hotel insurance program that adequately covers your most critical risks.

Flickr photo credit: s~revenge