Hotel insurance has long been sold as a safety net for one of the world’s most unpredictable industries. But behind the polished marketing and “peace of mind” slogans lies a history riddled with fine print, exclusions, and moments where insurers protected their bottom line far more aggressively than they protected hoteliers or their guests.
A System Built on Ambiguity
The history of traditional hotel insurance is, in many ways, a history of creative exclusion. While the industry has undeniably helped some hotels recover from mishaps, it has just as often left owners and guests fighting for compensation they believed was guaranteed. From the earliest fire policies to the most modern versions, the fine print remains the insurer’s most powerful tool—not for protection, but for denial.
In the end, hotel insurance has been less about peace of mind and more about risk transfer—away from insurers and onto the very people who thought they were covered.
Valuing Relationships over Algorithms
Large insurance carriers now use algorithmic risk scoring and pooled data to set premiums and coverage limits. That means your 5-star hotel with robust security could be priced the same as a chain motel with multiple claims—just because they’re both in the “hospitality” category.
Alternative coverage shifts the relationship from a faceless corporate system to a named underwriter or syndicate who actually visits the property, understands its operations, and is more invested in its survival. When claims arise, you’re not talking to a rotating claims adjuster—you’re speaking to the person who built your contract with you in mind.
The Lobbyists Who Keep Hotel Insurance Expensive
Hotel owners often blame insurers for sky-high premiums, but the pressure doesn’t come from the insurance industry alone. A quieter, more complex force lurks in the background: lawyers and lobbyists whose livelihoods depend on keeping insurance rates inflated.
The Lawsuit Economy Behind Hospitality Insurance
The hospitality industry is one of the most litigation-prone in the world. Slip-and-fall claims, foodborne illness suits, guest property disputes, liquor liability cases—the list goes on. In some markets, even minor guest incidents can spiral into six- or seven-figure settlements.
Trial lawyers, particularly those specializing in personal injury and premises liability, have long been major political donors in states with large tourism economies. They push for legislation that expands liability for hotels—laws that sound consumer-friendly but increase insurer risk assessments. The result? Premiums climb year after year.
The Potential Shift: The Innovation of RestAssure
RestAssure isn’t just another hotel service—it’s a revolution in guest support. We’re tearing down the old, slow, frustrating coverage systems of the past and putting control back where it belongs: in the hands of hoteliers and their guests.
RestAssure changes everything. Our subscription-based coverage program puts complete guest support directly in your hands. Additionally, we handle everything with 24/7 guest assistance—no slow/corporate adjusters, no extra credit card holds, no bureaucracy. Guests get fast solutions; hotels get peace of mind.
RestAssure: The Smarter Way to Protect Hotels and Guests
Traditional hotel insurance is slow, complicated, and built to protect the insurer—not your business or your guests. Claims drag on for months, deductibles climb, and small incidents spiral into serious burdens.
Unlike conventional insurance, RestAssure prevents problems before they escalate. We solve issues in real-time, reducing the need for formal claims and keeping costs predictable. Our model doesn’t just cover risk—it enhances guest satisfaction, streamlines operations, and protects revenue.
Private, personal coverage takes the hotelier out of the statistical cattle pen and leaves the owner with many more freedoms and concise control when it comes to liability definitions, claim handling, and payout structures. By taking our coverage out of the politically shaped pool, this form of coverage undercuts the financial incentives that keep both lawyers and insurers feeding off of needlessly high rates.
In short: RestAssure isn’t insurance. It’s a proactive, innovative form of coverage and protection for hotels that want to stay ahead—and leave the old, slow, frustrating, and corrupted systems behind.
Written in partnership with Ashley Kovatchev from RestAssure.
Please visit:
Our Sponsor