Hotels offer a $218 million opportunity for workers’ compensation brokers in NCCI states with average premiums north of $150,000 per policy1. California offers an additional $330 million2 in opportunity. Securing even a small foothold can grow your book significantly.
But winning mid-market hotel accounts takes more than a competitive quote.
Hotel operations blend high labor intensity, seasonal risk patterns, and diverse workforces, making them prone to strains, slips, and repetitive-motion injuries especially in housekeeping. These are precisely the types of injuries that proactive, tech-driven safety solutions can prevent.
In this guide, you’ll learn how to:
- Understand the workers’ comp landscape for hotels and the most common loss drivers
- Identify key hotel stakeholders and tailor your sales approach
- Find the niche inside the niche by targeting safety-minded operators
- Lead with value beyond price, using technology and data to differentiate
- Explore how partnering with Kinetic can help you protect clients while growing your revenue
By mastering these strategies, you can confidently approach hotel prospects with insights that improve safety, reduce claims, and set you apart as a trusted, proactive insurance advisor.
Hotel Workers' Compensation Basics and Risk Overview
Hotels are under increasing pressure from rising labor costs, inflation, and operational challenges, all squeezing their profit margins. To stand out, you need to demonstrate a deep understanding of the specific challenges hotels face and tailor your risk management solutions to their operations.
Key Industry Data to Build Credibility
| Total workers' comp claims | 39,291 |
| Average claim cost | $8,125 in NCCI states1 and $15,739 in California2 |
| Average indemnity claim cost | $32,470 in NCCI states1and $35,217 in California2 |
| Days out per injury | 11 days per injury3 |
Top Causes by Loss ($)1
- 43% Fall/Slip/Trip
- 33% Strain and Sprain
- 7% Struck by
Hotel-Specific Risk Factors Brokers Must Understand
| Diverse workforce | Diverse physically demanding roles require tailored safety strategies. |
| Varied operations | Hotels range from boutiques to roadside motels, each bringing unique risks. |
| Seasonality | Injury risks rise during peak periods. Peaks vary by geography and niche. |
| Brand-focused operations | Every employee contributes to the guest experience. Safety solutions must align with hotel aesthetics and operations. |
| High turnover | Creates safety training gaps. |
| Language barriers | Non-English-speaking staff need accessible training. |
Annual turnover in hospitality is a staggering 74%, according to the U.S. Bureau of Labor Statistics, with housekeeping hit hardest. As operators struggle to fill roles, retention depends on providing a safe, supportive work environment.
Key Hotel Stakeholders in Workers' Comp Decisions
Engage with all stakeholders who will impact the workers’ compensation conversation and focus on departments who will use the value-added services. The head of housekeeping cares about works day-to-day. The HR director cares about compliance and retention. Speak the language of the stakeholder.
Here's your playbook:
Map the Stakeholder Ecosystem
| Owner | Prioritizes profitability, regulatory compliance, and long-term savings. |
| General manager | Focused on operational efficiency and cost management. |
| HR manager | Concerned with employee well-being, compliance, and reducing claims frequency. |
| Housekeeping manager | Need tools to maintain a safe work environment and compliance with safety standards. |
| Restaurant managers | Care about employees and food safety standards. |
Frontline risk areas
| Housekeepers | Most frequently injured due to repetitive motion, slips and trips, and strains and sprains. |
| Housekeepers | Unique source of risk from cuts, burns, and slips. |
| Engineering & Maintenance | High exposure to outdoor risks like equipment accidents. |
How to Identify Mid-Market Hotel Workers' Comp Prospects
Look for hotel clients who are already safety-focused and not just focused on the lowest quote. Clients who are a good fit for Kinetic have a number of employees in high-risk roles, strong safety goals, and significant premium potential.
Match the Ideal Hotel Client Profile
| Class Codes |
|
| Premium | $50K+ |
| Safety-focused | Clients already prioritizing injury reduction, especially for musculoskeletal injuries (MSD), or seeking proactive loss control measures |
Ask the Right Questions
- Are pre-employment physicals used for high-risk roles?
- Are there seasonal peaks?
- Do you have an active safety committee?
- What return-to-work initiatives are in place? How do you handle transitional duty?
- Are employees trained in safety protocols before starting work or are they expected to ‘jump in’?
- How many rooms do your housekeepers clean daily?
Benchmarks to Guide You
The following benchmarks serve as guiding principles to evaluate their responses to key questions.- Early training is crucial. 35% of employee injuries occur in the first year of employment.4
- Housekeeping cleaning quotas less than 15 rooms per day can significantly lower injury rates.5
- Traveling between buildings or floors, along with fatigue and overexertion during peak periods, can significantly increase injury risk.
How Brokers Win Hotel Accounts with Safety-Driven Comp
Lots of brokers quote comp. Fewer bring a strategy. We’ve seen brokers win accounts by leading with differentiated tech-forward offering.
With Kinetic, you can deliver wearables that cut strain and sprain injuries by up to 60%, an award winning return-to-work program that lowers claims costs by up to 34%, and intelligent workflows that streamline claims management. Combined with industry-leading traditional services, help your clients reduce claims costs by 22% and lower premiums by 13%.
Get appointed. Whether you already have hotel clients, or are looking to, Kinetic can help you turn safety into a competitive edge.
Sources:
1 NCCI Data from Rate Filing Reports (2017 - 2019). Fully Developed. For policies greater than $50,000 in premium.
2 WCIRB Data (2018-2022). Not fully developed.
3 U.S. Bureau of Labor Statistics - Table R65, 2021-2022, Accessed January 16, 2025
4 U.S. Bureau of Labor Statistics - Nonfatal injury and illness by Age of Worker, DART Cases, 2021-2022, Accessed January 16, 2025 via NSC Injury Facts
5 Health and working conditions of hotel guest room attendants in Las Vegas, University of California at San Francisco, June 15, 2002
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