A broker’s guide to selling workers’ compensation to hotels

There's 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.

Housekeeping departments drive most workers’ comp claims, largely due to preventable injuries like strains, sprains, and repetitive motion injuries. With the right safety strategies, these risks can be mitigated, making hotels a prime industry for brokers offering proactive, results-driven workers’ compensation solutions.

In this article, we'll explore:

Hotel workers' comp 101

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.

Use industry data to build credibility

• Hotels had 39,291 total workers' comp claims with an average claim cost of $8,125.¹ Claim cost jumps to $15,739 in California.²
• $32,470 was the average indemnity claim cost in NCCI states¹ and $35,217 in California.²
• Workers were out, on average, for 11 days per injury.³

Top three losses by cause ($)¹

• 43% Fall/Slip/Trip
• 33% Strain and Sprain
• 7% Struck by 

Understand hotel-specific risk factors

• 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.

Pro Tip: When reviewing your client’s data, focus on those with high strains and sprain injuries or significant indemnity costs, these clients benefit most from proactive, tech-driven solutions.

Understand key hotel stakeholders

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.

• Housekeepers: Most frequently injured due to repetitive motion, slips and trips, and strains and sprains.
• F&B Staff: Unique source of risk from cuts, burns, and slips.
• Engineering & Maintenance: High exposure to outdoor risks like equipment accidents.

Key stat: 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.

Find the niche in the niche

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:
  • 9044 / 9069: Hotel Casino Employees
  • 9050 / 9052 / 9058: Hotel Operations (CA & National)
• Premium size: $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?

• 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.

Bring more than just a quote

Lots of brokers quote comp. Fewer bring a strategy. We’ve seen brokers win accounts by leading with technology, like wearables that help prevent injuries, and by speaking the language of hospitality teams.

With Kinetic, you can offer:

• Proactive technology:
  • Wearables that reduce strain/sprain injuries by up to 60%
  • A tech-driven Rapid Return-to-Work program that reduces the claims costs by up to 34%.
• Expert support:
  • Industry-specific underwriting
  • AI-powered risk assessment
  • In-person + virtual claims management
• Proven Impact:
  • 22% reduction in claims costs
  • 13% lower premiums

“Kinetic adapted their service to the way we do business, making a complex process simple and achievable.” — Director of HR, Luxury Hotel, Napa, CA

Kinetic Insurance resources

• Hotel Appetite Guide
• Broker Resources Page

Curious about working with Kinetic?

By combining industry expertise, tailored solutions, and proven results, brokers can confidently expand into the hotel industry, offering clients unmatched safety and savings.

Let's connect. 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