A lot can change in a hospitality business over the course of a year, making a year-end insurance review far more critical than many owners realize. Guest expectations change, staffing shifts occur, and new amenities roll out. At the same time, risks grow — from cyber incidents and guest injuries to revenue swings tied to events or weather.
Reviewing your hospitality insurance now helps you confirm that your coverage still matches the way you operate today. It also gives you clarity heading into 2026, when liability pressures and operational demands will only intensify. A simple check-up can reveal gaps, outdated limits, or exposures that developed over the course of a busy year.
What Should Hospitality Businesses Reevaluate for 2026?
A year-end hospitality insurance review helps hospitality businesses evaluate how their operations, guest expectations, and exposures have changed over the past year. Breaking the review into a few focused areas makes it easier to spot gaps and confirm whether your coverage still matches how you run the business today.
Operational Updates That Shift Exposure
New amenities, renovated spaces, expanded outdoor areas, or added services can all change a property’s risk profile. Even minor upgrades — such as offering new recreational activities or adding event space — can affect liability and property coverage needs. A quick on-site walkthrough often reveals exposures that a standard renewal discussion might miss.
Staffing & Safety Practices
Staffing continues to shape exposure. In one industry survey, 62% of hotels reported staffing shortages going into 2024, increasing operational strain and raising the likelihood of service errors or safety lapses. Businesses that adapt workflows or rely on newer employees should verify that safety procedures and responsibilities remain clear and current.
Guest-Facing Liability Risks
Slips and falls involving negligence remain one of the most common sources of guest injury claims across the industry. Typical hazards include wet or slippery floors, uneven or damaged surfaces, poor lighting, or inadequate signage.
Additional guest-facing risks include alcohol-related incidents, crowded events, and security concerns. These exposures may increase when properties add new events, expand service hours, or welcome higher guest volumes.
Technology & Cyber Exposure
Older policies may not address the use of modern technology. Mobile check-in, online reservations, smart-room features, and digital guest communication create convenience — and new risk. Errors, system failures, or data privacy issues can lead to costly claims.
How Can Hospitality Businesses Prepare for Revenue-Disrupting Events?
Hotels and restaurants rely on steady occupancy, event bookings, and seasonal volume. Any interruption — whether it comes from a cyberattack, major weather event, power outage, or supply-chain breakdown — affects revenue the same day.
A year-end check-up should include:
- Reviewing business interruption limits: Make sure they reflect today’s revenue, not last year’s numbers.
- Evaluating dependency on events and seasonal patterns: Identify which months or activities create the highest revenue pressure.
- Assessing vulnerabilities from suppliers: Look at food, beverage, linens, cleaning supplies, and tech vendors.
- Considering specialty endorsements: Some policies can fill gaps related to utility failures, cyber events, contingent business interruption, or equipment breakdown.
This review provides hospitality businesses with a clearer understanding of where disruptions could cause significant financial strain — and how to strengthen their recovery plans.
Build a Strong Risk Strategy for 2026
A targeted year-end review should include evaluating claims history, updating safety protocols, strengthening cyber readiness, and confirming whether policy limits still align with revenue and property updates. It also helps to revisit emergency procedures and guest-safety policies, especially if you’ve made staff adjustments or added new services and technologies.
Whether you run a boutique inn or a large property, working with an experienced insurance advisor ensures your hospitality insurance program reflects these needs. Your annual review provides a clearer picture of evolving risks, coverage requirements, and essential steps to mitigate risks.
Ready to head into 2026 with comprehensive protection? Contact Provident Protection Plus to learn more and explore your hospitality insurance options.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.