Hospitality Insurance for California Operators.

Wildfire losses across California have caused many standard carriers to either non-renew hospitality accounts or add wildfire exclusions. Increased construction costs mean replacement values keep rising. Hospitality also has higher liability claim frequency than many other property classes. We have relationships with the remaining admitted carriers plus surplus lines markets that still write the harder properties.

Pays your operating income (gross revenue minus continuing variable expenses) while the property is unable to operate due to a covered loss. For hotels, this includes lost room revenue, F&B revenue, event revenue. The carrier looks at prior year revenue and seasonal patterns. Indemnity period typically 12 months but can extend for hospitality given longer rebuild timelines.

Liquor liability covers claims arising from alcohol service — over-service leading to off-premises incidents, alcohol-related assaults, drunk-driving claims by third parties harmed. California's dram-shop laws apply. Required separately from GL. Pricing depends on alcohol percentage of revenue, hours of service, security measures, and claims history.

Coverage for claims arising from violent acts on the premises — bar fights, parking lot incidents, security guard altercations, guest-on-guest disputes. Some carriers exclude A&B from hospitality GL, especially properties with bars or late-night operations. We verify A&B is included with meaningful sublimits — exclusions can leave you exposed to large judgments.

California requires workers' comp on the full wage including tips for purposes of injury benefits — even though tips aren't on payroll for premium calculation in some structures. The interaction between tip reporting, payroll for premium, and injury benefits is complex. We help structure correctly and address auditor questions about tip income.

Hospitality has very high EPLI claim frequency: wage-and-hour PAGA actions (high turnover, tipped wages, meal break compliance), harassment claims (intoxicated guests, late-night staffing), wrongful termination. A 100-employee hotel might face $200K+ in PAGA exposure from a year of technical wage-and-hour violations. EPLI funds the defense and covers most settlements.

Yes — but they're different markets. Boutique hotels with full operations (housekeeping, F&B, front desk) fit standard hospitality carriers. Short-term rentals (Airbnb, VRBO) need short-term rental insurance, which is its own specialty. Mixed operations (hotel + STR units) often need coordinated coverage from two carriers.

Variable. A 60-room limited-service hotel might run $25K-$60K annually for the full stack. A full-service 150-room property with restaurant, bar, pool, and event space runs $75K-$200K+ depending on revenue and claims history. California rates are higher than most states due to wildfire, EPLI exposure, and litigation environment.