What Risks do Valet Services Pose to Hotels?
One of the marks of a good hotel is the availability of valet services. When guests or visitors drive up to your entrance and are greeted by a smartly dressed valet, it automatically gives them the impression of a classy, first-class establishment. And what hotel owner doesn’t want to give off that impression to their guests?
Although valet services are a valuable perk for hotel guests and visitors, offering them could increase the risk of potential liabilities for owners. These typically involve safety issues, vehicle damage, inspection disputes, and concerns related to incident reporting. All these factors highlight the need for proper employee training and Santa Fe Hospitality Insurance.
Risk reduction checklist for valet services
Many of these risks could be avoided simply by not providing valet services to hotel guests. But there are ways to minimize and manage the risks and continue to offer this valuable service. Among the measures that hotel owners could implement are:
- Offering safety education programs to hotel staff
- Implementing vehicle inspection protocols
- Instituting clear-cut policies for incident reporting
These steps will help ensure that valet services are operated safely, reducing the risk of potential liabilities to hotel owners.
COVID-19 related concerns
The COVID-19 pandemic that remains a serious threat in many parts of the world put the risks involved in offering valet services in sharp focus. Now, more than ever, it is vital for hotel owners and operations managers to implement policies and procedures by which staff could offer valet services with minimal risk.
Hoteliers should offer training and education programs for staff members, with a focus on COVID-19 related safety procedures. In addition, they should implement safety procedures and policies according to Centers for Disease Control and Prevention (CDC) guidelines. These efforts will help ensure a safer environment for guests and hotel personnel that provide valet service.
Other risks related to valet services
Even without COVID-19 to deal with, hotel owners and managers are at risk for potential liabilities by providing valet services.
The statistics seem to bear this out. About 300,000 of all reported accidents occur in parking lots. Most of these result from drivers attempting to maneuver in or out of confined spaces.
In 2007, a surveillance system placed in a non-traffic area showed that single-vehicle and two-vehicle accidents were frequent occurrences in parking lots.
About 50% of these incidents were caused by cars backing into pedestrians or cyclists. Altogether, accidents that occurred in non-traffic areas resulted in more than 98,000 injuries and nearly 1,160 deaths.
Keep in mind that all these incidents occurred in non-traffic areas, in many cases in parking lots. This suggests a high potential for accidents when offering valet services, emphasizing the importance of proper safety protocols when providing these services to your guests.
Why you need valet parking insurance
Employee training and education and company-wide safety policies can help minimize some of the risks of offering valet services. But they aren’t a surefire guarantee against claims and litigation. Therefore, to protect your business against costly claims and lawsuits, it is advisable to get appropriate valet parking insurance coverage.
Valet service insurance protects you from liabilities that could potentially arise from offering valet parking. With this type of insurance, you are covered for the costs of repairing vehicular damage, as well as medical treatment for injured pedestrians.
Some insurance plans will even cover your legal costs, including settlement fees, fines, penalties, and attorney and court fees. Some of the areas that the best valet insurance policies address are:
General liability. This provides coverage for personal injury or property damage claims related to your valet attendant’s neglect or direct action. General liability also covers injuries to pedestrians that valet attendants may cause while operating vehicles.
Garage keeper’s liability. This covers vehicular damage that occurs in a parking lot owned by the hotel or valet company. Coverage typically includes collisions and theft of vehicles in the facility’s care, custody, or control.
Workers compensation. This covers the cost of medical care and disability benefits for valets and other hotel personnel that may be injured or become ill in the course of carrying out their duties. Some policies also cover wages lost by hotel staff while recovering from illness or injury.
Offering valet services is generally a good thing for a hotel. Even so, you need to be aware of the risks involved, so you don’t find yourself on the receiving end of a potentially costly lawsuit.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours 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