What Hoteliers Are Saying About Insurance in 2025 And Why It’s Time to Rethink Your Risk Strategy
- Guest Writer
- Oct 22
- 2 min read
Updated: Nov 6
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.
How Cottingham & Butler Can Help
Specialized Hospitality Expertise — Our hotel insurance team understands the unique risks you face and designs coverage specifically for hotel operations.
Proprietary Risk Assessment — We conduct a comprehensive review that goes beyond standard insurance to uncover gaps that could threaten your business.
Strategic Market Access — We leverage our carrier relationships to bring you competitive premiums and innovative coverage solutions year after year.
Proactive Loss Prevention — We help protect your guests, staff, and bottom line through customized safety programs, on-site training, and compliance support.
Dedicated Claims Advocacy — Our claims team provides 24/7 response and aggressive advocacy to resolve claims quickly and control costs.
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