What Hoteliers Are Saying About Insurance in 2025 And Why It’s Time to Rethink Your Risk Strategy
- Guest Writer
- 1 day ago
- 2 min read
Written by: Brian Popelmayer, Risk Management Consultant - Hotel Insurance Vertical Leader
I just returned from the 2025 Lodging Conference, and three recurring themes dominated my insurance conversations with fellow hoteliers. These aren’t just casual observations; they reflect growing frustration and real financial exposure across the industry. Here's what you need to know:
1. Lack of Creativity in Insurance Programs
Hoteliers are tired of cookie-cutter solutions. The consensus? Brokers are recycling the same carriers year after year. Once the deal is closed, innovation fades. In a dynamic risk environment, this stagnation is dangerous.
Only 12% of hotel owners say their broker proactively brings new risk solutions to the table annually. That’s a missed opportunity in a market where emerging threats from cyberattacks to social inflation are rewriting the rules.
2. Insurance Rates Continue to Rise
Since the pandemic, insurance costs have skyrocketed. On average, U.S. hotel insurance rates have increased by 105% and some segments have seen even sharper spikes.
Property insurance is finally stabilizing in 2025, but…
Excess Liability rates are climbing fast, with hikes of 8–20% depending on location and risk profile.
Resort hotels in high-risk zones pay up to $1,200 per available room annually.
3. Gaps in Coverage and Lawsuit Exposure
This is where things get serious. Nuclear verdicts (over $10M) are at a 15-year high. Many hoteliers I spoke with aren’t confident they’re covered for high-risk exposures like:
Legionnaires’ Disease – Multi-million-dollar settlements reported.
Carbon Monoxide Poisoning – $15M awarded in a Montana case.
Human Trafficking & Abuse – Often excluded or underinsured.
What Can Hoteliers Do?
Audit your coverage — especially for emerging risks.
Challenge your broker to bring fresh carriers and creative structures.
Consider layered programs or captives to control costs and fill gaps.
Invest in risk mitigation — smart sensors, safety buttons, staff training, and crisis protocols.
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