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2024-07-30
By: Advocate Brokerage
The hospitality industry is constantly evolving, and how it manages risk also needs to evolve. Insurers more and more want to know that their hospitality clients are doing everything they can to keep a safe space for their clients and customers. The Information Age has made this possible in many ways.
Tech-powered Insurance Processes
Gone are the days of paper-based claims. Hospitality insurers utilize online portals and mobile apps for faster, more efficient claims filing and processing. For example, a guest might submit photos and receipts directly through an app after a lost/stolen item incident.
Artificial intelligence (AI) is also transforming risk assessment. By analyzing huge amounts of data, such as property location, guest demographics, claims history, AI can predict potential risks and help hotels implement preventive measures. This can lead to more accurate pricing and better risk management for insurers and hospitality businesses.
Evolving Insurance Products
The hospitality landscape is changing. Traditional insurance products might only sometimes address new challenges. The rise of platforms like Airbnb has created a need for specialized insurance for short-term rentals. These policies might cover property damage caused by an ever-revolving door of guests. Further, data breaches are a major concern for hotels that store guest information. Cybersecurity insurance can help cover costs associated with data breaches, including legal fees and notification to affected guests.
Unforeseen events can disrupt conferences, weddings, trade shows, and other events.
Data Analytics
Data is king in the insurance world as with many other industries. By analyzing a hotel’s safety record, guest feedback, and claims history, insurers can create more precise risk profiles. This allows for fairer pricing based on a property’s actual risk.
Data can help hotels identify areas of high risk, such as slip-and-fall accidents in the pool, kitchens, and other specific areas. With this insight in hand, hotels can take preventive measures like improving flooring or adding better signage.
These trends highlight how innovation is transforming hospitality insurance. By embracing technology and data, insurers can offer more relevant coverage options, while hotels can benefit from better risk management and potentially lower premiums.
If your hospitality business is booming, make sure that your insurance coverage keeps up. Contact Advocate Brokerage today and protect your livelihood!
