Unique risks make Workers’ Compensation essential in the hospitality industry

If you own or operate a hotel, motel, bed and breakfast, or another type of hospitality business, you know you face many risks, including the risk of employee injuries. Despite your best efforts to train your team members and encourage safety, you can’t prevent accidents entirely.

The good news is that you can protect employees from medical care costs if they get hurt at work by having the right insurance. Specifically, Workers’ Compensation. It’s crucial in the hospitality industry.

Let’s look at what Workers’ Compensation insurance is, why it’s essential, and how hospitality businesses benefit from getting their insurance from THREE.

What is Workers’ Compensation Insurance?

Workers’ Compensation insurance (also called Workers’ Comp) covers medical expenses related to on-the-job injuries or illnesses and can help pay for a team member’s lost income while they recover. It can also provide what’s called a death benefit to surviving family members if an employee dies from an on-the-job incident.

Companies with employees are almost always required to carry Workers’ Comp. If you have employees, you should assume your business is required to have it unless the Workers’ Comp authority in your state tells you otherwise.

Injury risks in the hospitality industry

While you might not think of the hospitality industry as dangerous, workers can face a variety of injuries, including:

• Slips, trips, and falls (on wet floors, stairs, etc.)
• Burns (from kitchen equipment, hot water, chemicals, and other sources)
• Strains and sprains (from lifting luggage, event set up, cleaning, and more)
• Repetitive stress injuries (like carpal tunnel from keyboard use, etc.)
• Exposure to hazardous materials (like cleaning chemicals)

Fortunately for hospitality employees, Workers’ Comp can cover the costs of treating these conditions.

How Workers’ Compensation benefits hospitality businesses

In addition to protecting employees by paying for injury-related expenses, Workers’ Comp for hotels also benefits the business and owners in multiple ways, including:

• Protection from lawsuits. Workers' Comp is a no-fault system, meaning employees generally can’t sue their employers for work-related injuries or illnesses. This protects you from potentially costly legal fees.
• Improved employee satisfaction. Hospitality employees like knowing that Workers' Comp protects them while they’re working. That knowledge provides peace of mind, improves morale, and supports increased productivity and reduced turnover.
• Regulatory compliance. Employers fulfill their legal obligation by making Workers' Compensation benefits available to employees. This can help reduce their liability for workplace injuries and illnesses.

Beware of common misconceptions about Workers’ Comp

Most businesses (in hospitality and other industries) carry Workers’ Comp. Still, people frequently don’t understand what this coverage is and how it works. It’s important to be aware that misconceptions exist and get the facts from your insurer, state Workers’ Comp authorities, and other experts who understand insurance.

For example, business owners might hear that Workers’ Comp is expensive for hospitality businesses. But the truth is, it’s very affordable compared to the potential costs of not having it (including the fines and penalties your state can impose).

Some hospitality workers might falsely believe that Workers’ Comp only covers major injuries even though it can pay expenses regardless of the severity of an injury or illness if it’s covered. Workers may also worry that reporting a claim could cost them their jobs when, in fact, there are many protections in place for workers.

Bottom line: Workers’ Compensation is essential in the hospitality industry. Be sure you and your employees have accurate information about it.

Hospitality Workers’ Comp protects people throughout your organization

From entry-level workers to business owners, everyone in your organization can benefit from your Workers’ Comp insurance. Frontline employees like knowing your coverage will cover their costs if they get hurt or sick on the job. They also appreciate that their family will get a death benefit in the event of a fatal incident. You should be sure they understand how important it is to report injuries immediately.

Your managers also have peace of mind knowing your Workers’ Comp policy protects them and their team members. It’s one less thing they have to worry about. Knowing how to respond to and report on employee injuries and illness is essential for them.

Finally, as a business owner, you can also elect to be protected and can feel good about investing in your people with your hotel’s Workers’ Comp coverage. You also understand your legal obligations and know that your THREE policy can ensure you meet them.

Why THREE is an excellent source for Workers’ Compensation

There are many reasons hotels and hospitality businesses choose THREE for Workers’ Comp. Here are a few:

• Reliability. THREE is backed by Berkshire Hathaway. If you ever need to report a claim, you can trust that THREE has the resources to process it promptly and pay it if approved.
• Comprehensive coverage. Our policy includes Workers’ Comp and a whole lot more coverage for all the risks hospitality businesses face. (Read how below.)
• Convenience. Getting all the coverage you need in one policy saves you time and effort when getting a quote, calling for support, submitting a claim, or managing your business insurance.

THREE covers Workers’ Comp claims and more in a single policy

Insurance from THREE is all-in-one. That means you get all the coverage most businesses need to protect your people, property, and operations in a single policy. In addition to Workers’ Comp, THREE protects you from other common risks in the hospitality industry.

For example, a THREE policy can protect your business if a fire breaks out in the kitchen and causes extensive structural damage or destroys equipment. You’re also covered for guest injuries, like someone slipping on a wet pool deck and suffering a concussion.

In addition, our policy includes Employment Practices Liability insurance (EPLI). It can cover expenses related to lawsuits filed against your company by employees for things like sexual harassment and wrongful termination. We also protect your business from data breach expenses if someone hacks into your system and steals sensitive information.

Get a quote and get covered

Risk is a constant in every industry, including hospitality. Workers' Comp can provide peace of mind and ensure workers know they're protected from on-the-job injuries and illnesses. And with a policy from THREE, workers and owners are protected from a whole lot more.

Ready for more risk protection and simpler policy management? Get a quote online today. If you have questions about Workers’ Compensation for hospitality companies, our small business advisors are happy to answer them. Just call 1-800-507-4495 during business hours. We’re here Mon. - Fri. 8am-9pm ET.