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

The hotel industry offers a $218 million opportunity for workers’ compensation brokers in NCCI states. With premiums averaging $158,457 per policy¹. California offers an additional $330 million². 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

Why now? Hotels are under pressure from rising labor costs, inflation, and operational challenges, all squeezing their profit margins. To stand out, brokers must go beyond competitive pricing and offer specialized expertise and solutions that tackle their unique workers’ compensation challenges head on.

Step 1: Build hotel industry expertise

Understand the specific challenges hotels face and tailor solutions to their operations, to establish yourself as a trusted advisor.

Use industry data to build credibility

• 39,291 total claim count with an average claim cost of $8,125.¹ Claim cost jumps to $15,739 in California.²
• $32,470 average indemnity claim costs in NCCI states¹ and $35,217 in California.²
• 11 days median number of lost days per injury in hotels.³

Top three losses by cause ($)¹

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

Hotel-specific risk factors

• Physically demanding, diverse roles
• Operational variation (boutiques vs. chains)
• Seasonal injury spikes
• Safety training gaps due to high turnover
• Language barriers
• Brand-driven aesthetics limiting bulky safety equipment

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.

Step 2: Understand hotel stakeholders

Engage with all stakeholders who will impact the workers’ compensation conversation and will use value-added services. Focus especially on departments who will actually the technology day-to-day.

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.

Pro Tip: Annual turnover in hospitality is 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.

Step 3: Target the right hotel accounts

Focus on hotel clients that will benefit most from Kinetic’s proactive solutions—accounts with high-risk roles, strong safety goals, and significant premium potential. Identifying these ideal accounts lays the groundwork for long-term success.

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 open to proactive tech and loss prevention

Ask the right questions

• How many rooms does each housekeeper clean daily?
• Do you perform safety training during onboarding?
• Are transitional duty programs in place?
• Do you have an active safety committee?

Benchmarks to Guide You:

• 35% of injuries occur in year one⁴
• ≤15 rooms/day = lower injury rates⁵
• Traveling between buildings or floors, fatigue, and overexertion = higher safety risk 

Step 4: Differentiate with measurable value

In a soft market, differentiation is key. Educate your clients on the value of what could be with services that impact losses.

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 cost of claims 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

Take the next step

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

Ready to take the next step? Contact us and let’s work together to make hotels your next big win.

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