Hospitality staffing placements continue to rise due to the increased demand for services, flexible scheduling opportunities, and technological advancements (app-based staffing). While hospitality placements may seem niche-specific and easier to manage compared to light industrial firms that work with numerous manufacturers and diverse environments, they present unique challenges for underwriters. Here are some of the top risks you should be aware of:
Unwitnessed accidents: Housekeepers and maintenance staff often work alone without supervision, which means injuries can occur without anyone present to witness them. This lack of oversight complicates accident investigations, making it difficult to evaluate causation and defend against questionable injury claims.
Heavy lifting: One of the most common workers’ compensation injuries in the hospitality sector is sprains and strains resulting from heavy lifting. Temporary workers frequently lift mattresses, sort laundry, and rearrange hotel furniture often resulting in back strains — the most complex and costly injuries due to the need for ongoing treatment and prolonged recovery times.
Slip and falls: Slip and fall incidents are another prevalent injury risk for hospitality staff, often occurring while cleaning bathtubs, doing laundry, or mopping floors. Maintenance team members also face additional hazards when working at heights. Even a few feet off the ground, such as when changing a light bulb, can lead to significant injuries.
Theft of guest property from hotel rooms: Staffing contracts often place the responsibility for theft of guest property from hotel rooms on the staffing company, regardless of whether the responsible party can be identified or if others had access to the room. While individual incidents may not result in substantial claims, these occurrences can add up over time, leading to significant costs.
Liability claims from hotel guests: Claims such as slip and falls, injuries due to improper maintenance of the premises, and food-related illnesses are commonly filed against hotels and subsequently tendered to the staffing firm based on the terms of the staffing services contract. When entering into a new contract, assess the exposures assumed through the indemnification language. Ensure your liability coverages adequately protect your staffing employees and provide appropriate coverage for your clients.
Understanding the complexities of the specific industry you serve and how these exposures align with your safety programs, training initiatives, and insurance coverages is essential. Each of the risks mentioned above can be mitigated through effective pre-claim and post-loss initiatives.
Additionally, be aware of state-specific regulations affecting the hospitality staffing industry, such as Cal/OSHA’s standards on Hotel Housekeeping Musculoskeletal Injury Prevention.
If you’re uncertain about how your current coverages or procedures measure up, reach out to your advisor at Marsh McLennan Agency.
