Increased Nightlife Popularity at Hotels and Hospitality Insurance

In years gone by, a hotel bar or lounge was nothing more than a space filler off of the lobby of the hotel. Businessmen from out of town would flock here to “toss a couple” before dinner, or plunk down and watch the game while eating bar snacks. It was really nothing more than a small lounge used to serve watered-down drinks and listen to piped-in music. It was a place for guests to mingle, simply because there was nowhere else to really go.


In contrast, there were all of the resorts and five-star hotels that were the exception, boasting their share of award-winning restaurants. And this perhaps inspired these smaller properties to elevate their bars, turning them into a place that people wanted to spend time engaging one another, eventually turning it into a regular hangout. Prior to this, for most hotels, the nightlife options were never even considered.


Of course, anything that brings people to your hotel is a positive, but this also brings additional risks and concerns. Add live music to the mix, and the crowds begin to surge.

If the hotel bar is filled with people there are now the added concerns of imbibing too much to drink, fighting, and even a riot breaking out. Property damage becomes a bigger issue as well. This illustrates the need for having good hospitality insurance on hand.


Managing liability


The influx of new people to your building may create issues for the operation of the hotel and potential liability concerns for the hotel’s owners and operators. A hotel has many considerations when it opens a restaurant or bar designed for both guests and locals. Running a four-star restaurant or a hot nightclub is not the same as running a hotel. You need a fully trained staff, one with experience with the running of this particular type of venue.


An entire staff of professionally trained kitchen help and a bar staff should be hired, which increases payroll, employment rosters and consequently labor costs. Include into the cost the fact that many states require specific training for food safety and alcohol awareness for most, if not all restaurant or bar employees.


The upswing is more business, which equates to more profits. But also understand that the risk factor is elevated as well. Now that there are additional liability concerns, isn’t it prudent to sit down with an agent and discuss any additional hospitality insurance needs? Don’t get caught underinsured if a problem or incident arises. Speak to a qualified agent today.