Employment Practices Liability Insurance for Hospitality Businesses

As a hospitality business owner, your focus is likely on creating exceptional guest experiences, managing daily operations, and keeping your team running smoothly. But what if I told you there’s a hidden risk that could threaten everything you’ve built?

The hospitality industry faces unique challenges, including a diverse workforce, high turnover rates, and constant interaction between employees, guests, and coworkers. These factors make it one of the most vulnerable industries to employment-related claims, such as:

• Wage disputes
• Discrimination
• Sexual harassment
• Wrongful termination
• Retaliation

Without the right protection in place, these claims can wreak havoc on your business finances and reputation.

The Financial Impact of Employment Claims

Did you know that the average cost to defend and settle an employment-related claim is around $160,000? For many businesses, an unexpected expense of this magnitude could be devastating. Legal fees, settlements, and judgments can drain resources you need for growth, staffing, or improving guest services.

This is where Employment Practices Liability Insurance (EPLI) becomes a game-changer. EPLI is designed specifically to protect your business from these types of claims, covering legal defense costs, settlements, and judgments. With EPLI, you can focus on running your business without constantly worrying about the financial fallout of an employee dispute.

Protecting More Than Just Profits

The cost of an employment-related claim goes far beyond dollars and cents. In today’s world of instant communication and social media, an employee dispute can quickly spiral into negative publicity, tarnishing your brand’s reputation. For a hospitality business that relies on trust, guest satisfaction, and positive reviews, this can be catastrophic.

EPLI doesn’t just provide financial protection—it also helps manage and resolve disputes quickly and discreetly. By addressing issues before they escalate, you protect your reputation, retain guest loyalty, and maintain your team’s morale.

?Why You Need EPLI Now

The reality is that no matter how careful you are, the hospitality industry is inherently risky when it comes to employment-related issues. From hiring and firing to managing workplace interactions, there’s always potential for a claim to arise.

Investing in EPLI isn’t just about protecting against “what ifs”—it’s about being prepared for “when it happens.” This insurance offers:

• Coverage for legal costs, settlements, and judgments.
• Resources to help prevent disputes through employee training and best practices.
• Peace of mind knowing your business is protected from financial and reputational harm.

Take Action Today

If you don’t already have EPLI, now is the time to explore your options. Think of it as an essential part of your risk management strategy—a small investment that could save your business from financial disaster and protect everything you’ve worked so hard to build.

Your hospitality business thrives on service, trust, and reputation. Don’t let one claim jeopardize your success. Reach out to your insurance advisor today to learn how EPLI can safeguard your profits, protect your team, and keep your business growing.

About the author:

Kevin Shannon is a seasoned insurance and risk advisor at HUB Southwest in Albuquerque, with over eight years of expertise in the commercial insurance industry. Kevin is passionate about helping New Mexico business leaders prepare for life's uncertainties and is an essential partner to have in your network.

With profound knowledge in a wide range of sectors, including nonprofits, government municipalities, educational institutions, and restaurants, Kevin is an essential partner in providing tailored insurance solutions to protect your business operations, assets, and employees.

Beyond his professional achievements, Kevin has served in the New Mexico National Guard for over 12 years, holding roles as a Company Commander and Battalion Staff member. His military experience provides him with a unique perspective on leadership and risk management, which he applies to his work with clients.

Kevin holds a BA in History from the University of New Mexico and has earned the CLCS designation as a Commercial Lines Coverage Specialist. An active community member, Kevin serves on the board of the Carrie Tingley Hospital Foundation. His dedication to his profession and community was recognized in 2023 when he was named one of Albuquerque Business First’s “40 Under 40,” highlighting him as a rising professional in the region.

Contact: Kevin Shannon, CLCS

HUB International, Albuquerque, New Mexico

[email protected]