If you own or operate a hotel, restaurant, or event venue, you already know that managing risk comes with the territory. But the landscape for hospitality industry insurance has shifted significantly in 2026 — and the market is responding in ways that can leave operators underprotected if they aren’t paying attention.
A&B, SAM, and Human Trafficking Liability Are Escalating
Assault and battery (A&B) and sexual abuse and molestation (SAM) claims have become among the most serious exposures in hospitality. Parking lot incidents, bar altercations, and unauthorized room access can all lead to litigation, with plaintiffs arguing that negligent security (a subset of premises liability) contributed to the harm.
Layered on top of that is the expanding civil liability around human trafficking. Amendments to the Trafficking Victims Protection Reauthorization Act (TVPRA) have allowed victims to sue both perpetrators and entities — including hotels — that allegedly benefited from or failed to prevent trafficking on their properties. Settlements in these cases can reach seven or eight figures.
Insurers have noticed. Many carriers have moved A&B and SAM out of standard general liability policies and into sublimits — or dropped coverage altogether. Documented staff training on both security protocols and trafficking awareness is no longer just a regulatory checkbox; it’s an underwriting factor.
Operational Gaps Are an Underwriting Issue
Carriers evaluating hospitality risks dig into the operational details: keycard access controls, CCTV coverage, lighting in parking areas, incident reporting procedures, and how well ownership and on-site management are aligned on safety culture. Properties that can’t demonstrate consistent, documented controls are harder to insure — and more expensive to cover.
Beyond the insurance conversation, gaps in access control or staff training don’t just affect your hotel insurance coverage. They create the conditions that lead to claims in the first place.
Four More Trends Reshaping the Insurance Landscape
The liability picture extends beyond A&B and trafficking. Hospitality operators should also be tracking the following factors.
- Workplace violence: Violence against both workers and guests is rising. Carriers are now requiring documented policies covering workplace violence, harassment, and active-shooter scenarios, along with staff training on de-escalation.
- Cyber risk: POS systems, mobile apps, and guest services driven by artificial intelligence have expanded the attack surface for data breaches and ransomware. Review your cyber coverage with your broker — and make sure vendor management and staff training are part of your security stack.
- Natural disasters: Flood, wildfire, and storm severity are all increasing, and property insurance availability is tightening in high-exposure areas. Talk to your broker about private market flood options before you need them.
- ADA compliance: Digital accessibility lawsuits targeting hotel booking platforms and guest-service apps are on the rise. Noncompliance can mean legal exposure, reputational risk, and lost business.
Steps To Improve Insurability
Start with a formal security audit, and document what you find and fix. Keep thorough records of all staff training. Review your policy for A&B, SAM, and trafficking exclusions before your next renewal. And work with a specialist who knows the hospitality market — because a generalist broker may not know where the gaps are until after a claim.
The risks are real, but they’re manageable with the right coverage and the right partner. Call today to make sure your policy is keeping up.
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.