For hoteliers, providing exceptional guest experiences is the top priority. However, ensuring the safety of both guests and staff, protecting the property, and managing operational risks are just as critical to running a successful business.
At James Hallam, we work closely with hoteliers to identify risks, implement proactive solutions, and ensure they have the right insurance coverage in place. Nick Maddox, our risk management specialist, shares his insights on the most pressing risks facing the hospitality industry today—and how hotels can stay protected.
Understanding the Biggest Risks
While fire remains one of the most significant concerns for the hospitality sector, advancements in construction and fire prevention have helped reduce the risk to life. However, the financial impact of a fire has increased, largely due to rising material costs, limited availability of skilled trades, and planning or heritage restrictions.
Beyond fire, slips, trips, and falls continue to be the most frequently reported incidents in hotels, making up nearly 50% of all accident claims. In fact, over the past year alone, we’ve seen a 13% rise in these incidents. This highlights the importance of maintaining a safe environment through proper flooring, lighting, and staff awareness.
Common Pitfalls in Risk Management
One of the biggest challenges we see is that while many hotels have detailed policies and risk assessments, they often fail to implement them effectively. Risk management should not be seen as a tick-box exercise but rather as a core part of daily operations.
To be effective, risk management should follow three key steps:
- Identify the specific risks to the business
- Develop practical and achievable control measures
- Ensure staff are properly trained so that risk management becomes part of the hotel’s culture
Taking a Proactive Approach to Risk Reduction
Every hotel has a unique risk profile, but there are key areas that all hoteliers must focus on, including:
- Fire safety – Ensuring compliance with fire regulations and best practices
- Food hygiene – Reducing the risk of contamination and foodborne illness
- Health & safety – Preventing accidents through proper training and procedures
- Property protection – Safeguarding the hotel’s physical assets
- Cybersecurity – Protecting guest and business data from cyber threats
Beyond meeting legal and regulatory requirements, hotels must also demonstrate effective risk management to insurers. Without the right safeguards in place, claims may be delayed, reduced, or even declined. Regular internal assessments, or engaging an external risk management specialist, can help ensure compliance and minimise exposure.
The Importance of Staff Training
A strong risk management culture is key to protecting any hotel, and this starts with ongoing staff training. At James Hallam, we focus on four core principles that help embed risk awareness across teams:
- Communication – Keeping staff informed about risk management policies
- Consultation – Encouraging team input to identify potential hazards
- Collaboration – Working across departments to ensure best practices are followed
- Coordination – Ensuring all teams are aligned on risk mitigation strategies
Effective training not only reduces risk but also helps staff feel confident and engaged in their roles, creating a safer and more efficient working environment.
Mitigating Cyber Risks in Hospitality
Hotels rely on digital systems to manage reservations, guest data, and payments, making them a prime target for cyber threats. While most businesses outsource IT security to specialist providers, hoteliers should take an active role in understanding how their data is protected.
We always recommend:
- Conducting regular cybersecurity assessments to identify vulnerabilities
- Ensuring robust data protection measures are in place
- Considering comprehensive cyber insurance to safeguard against potential breaches
How James Hallam Supports Hoteliers
At James Hallam, we work with hoteliers to tailor risk management solutions that go beyond just insurance. Our comprehensive risk audits assess both insurable and non-insurable exposures, ensuring that hotels:
- Meet regulatory and compliance requirements
- Implement best practice risk management
- Provide insurers with clear and accurate risk assessments
By taking this proactive approach, we help our clients not only secure the right insurance cover but also reduce the likelihood of claims—ultimately protecting their business and reputation.
Final Advice for Hoteliers
Risk management isn’t about reacting to incidents; it’s about anticipating what could go wrong before it happens. Successful hoteliers are those who can predict the future by identifying emerging risks and taking action to mitigate them.
By adopting a proactive and structured approach to risk management, hoteliers can create a safer environment, protect their assets, and ensure long-term success. At James Hallam, we are here to help every step of the way.
Contact Nick Maddox
Email: nick.maddox@jameshallam.co.uk
Tel: 07876 204692
