Key Risks to Address in the Hospitality Industry
The global economy continues to improve, which means consumers and businesses are growing more confident about their financial situations. For those in the hospitality sector, this may lead to more money spent on vacations or business trips. That said, increased activity has led to more risks.
The hospitality sector faces a variety of potentially damaging threats. Consider accident prevention techniques as an important component of your business safety measures.
Data Privacy
Cybersecurity has been a big concern! While those specific industries are more concerned about cyber terrorism, the hospitality business is more focused on preventing data and identifying theft.
A security breach has huge ramifications. At the very least, businesses are required to contact other guests, from both past and present, and inform them that their data may have been compromised. This alone can be costly and may also lead to brand damage. If stolen data is used by fraudsters, the businesses may face liability claims for failure to protect data and maintain reasonable safeguards.
As more hospitality companies use digital systems to automate tasks and manage their data, they need to be aware of the potential risks these solutions bring to the table. Implementing accident prevention techniques as well as cyber liability insurance can go a long way in the protection of your business.
Guests
Guests represent the fuel for any hospitality company. Without them, these businesses wouldn’t make any money. However, guests can also potentially be the biggest threats – both directly and indirectly. Lawsuits from those injured or damage to guestrooms can represent a big risk to the bottom line.
Hotels should have internal controls in place to handle guest destruction and ensure travelers’ safety during their stay. Small things, such as closer management of property and resources, can prevent incidents like this from happening in the first place.
Staff
Staff is another critical risk. As the economy improves, staff members will have more options both in and outside the industry. This means hotels are at greater risk of having their key personnel poached by their competitors. Hiring and retaining are options, but they come with additional expenses.
Property theft is another big issue at many hospitality companies, given the number of amenities they deal with on a daily basis.
Address all demographics, wage levels, and worker satisfaction issues to ensure staff remains motivated and content. Creative companies are coming up with new retention plans and innovative strategies to help keep employees engaged.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that people like you face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.