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:
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.
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.
| 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 |
| 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.
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:
| 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. |
| Housekeepers | Unique source of risk from cuts, burns, and slips. |
| Engineering & Maintenance | High exposure to outdoor risks like equipment accidents. |
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.
| Class Codes |
|
| Premium | $50K+ |
| Safety-focused | Clients already prioritizing injury reduction, especially for musculoskeletal injuries (MSD), or seeking proactive loss control measures |
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