Navigating Risks in Hospitality and Travel: The Essential Role of Insurance in Business Continuity and Growth

Vishal Kamat

Executive Director and Chairman of CII Maharashtra Chapter

Insurance Trends in Hospitality and Travel: What You Need to Know: Industry Perspective- 1. What types of insurance are essential for hospitality and travel businesses (e.g., property, liability, workers' compensation)?

Insurance in hospitality is like a safety net—essential and varied. For starters:

● Property Insurance: Protects against damage to your property, covering incidents like fire, floods, or even slips and falls by guests.

● Travel Insurance: A must, especially for international travelers. Medical emergencies abroad can burn a hole in your pocket. A good travel insurance plan is a small price to pay for peace of mind!

● Employee Insurance: Companies like ours go the extra mile by covering employees, their families, and even their senior-citizen parents—because care starts at home.

Ultimately, insurance is about being prepared, and a good policy is like a trusted partner in tough times.

How can insurance help mitigate risks associated with natural disasters, terrorism, and cyberattacks?

Insurance doesn’t stop disasters, but it cushions the blow when they happen. Think of it as a Band-Aid—not a cure, but essential to start healing. For example:

● Natural Disasters: If a cyclone destroys a property, insurance ensures you're not starting from scratch.

● Cyberattacks: A robust policy helps recover from data breaches and protects your financial stability.

● Terrorism Coverage: While it can’t undo damage, it provides the funds to rebuild.

The takeaway? Insurance won’t erase the pain, but it can help you bounce back stronger and faster. And remember, safety measures are just as critical—keep your team and property secure to minimize risks.

What are the most common insurance claims in the hospitality and travel industry?

In hospitality, claims can come from all directions. The most common include:

● Natural Disasters: Cyclones, floods, and storms are major culprits. For instance, our resort was severely damaged during Cyclone Fani in 2019. Thanks to our insurance, we got back on our feet.

● Theft and Fraud: While cash-related claims have reduced with digital payments, fidelity and security remain critical.

● Accidents: Slips, falls, or guest injuries often lead to liability claims.

Insurance doesn’t just pay bills; it restores confidence in tough times.

How can businesses balance the cost of insurance premiums with the need to protect against potential risks?

There’s no one-size-fits-all answer here—it’s about how much you value protection. Think of it like life insurance: some opt for a modest policy, others go all-in with a high premium. Similarly:

● Assess Your Needs: Under-insurance is a bigger risk than no insurance. If disaster strikes, you don’t want to find yourself with inadequate coverage.

● Be Strategic: Invest in insurance that truly protects your core assets and risks.

Insurance isn’t just a checkbox—it’s your safety net. Choose wisely to ensure you’re genuinely covered when it counts.

What role does insurance play in ensuring business continuity and minimizing downtime?

Insurance is your safety anchor during crises. A good policy ensures:

● Quick Recovery: With a supportive insurer, payouts come swiftly, helping you restart operations.

● Business Continuity: While insurance may not cover everything, it’s enough to get you back on your feet.

● Relationship Building: A long-standing partnership with your insurer fosters trust and ensures better terms over time.

We’ve experienced this firsthand—our insurer supported us through tough times, and it made all the difference. So, don’t just buy insurance; build a relationship with your provider. That loyalty pays off when you need it the most!