Hotel Casino Risk
Liability risks for hotel casinos run the gamut – from a third-party vendor’s wrongful actions to public security and safety during an event, cyber crime, and premises slips and falls – that can end up costing the house a fortune. Sean Young, Associate Vice President, Distinguished Programs, in his recent article, “Four Risks on Which Hotel Casinos Can’t Gamble,” in Hotel Business Review, explores these risks and the steps that operations should take to reduce their exposures.

In the article, Sean provides examples for each risk that could potentially financially upend a hotel casino. For example, a casino may be named in a lawsuit against a third-party transportation vendor involved in a vehicular accident in which several hotel passengers were injured. Making sure the hotel casino is named as an additional insured in each of its third-party vendor’s Liability insurance policies as well as requiring each vendor to carry high limits of liability coverage are key in mitigating a hotel’s exposure.

Sean also highlights the importance for hotel casinos to minimize the public security and safety risks that arise from their entertainment venues and event centers. The 2017 Las Vegas shooting at MGM Resorts International’s Mandalay Bay resort resulted in thousands of liability claims with a price tag of up to $800 million. Sean provides several steps to take to lower the risk profile of an entertainment venue and the types of issues insurance underwriters review. 

Cyber crime, which has hit every industry, is no stranger to the hospitality sector, including hotel casinos that possess critical personal identifiable information (PII). This data collected through customer credit card transactions, reward programs, and online casinos is what criminals are looking to get their hands on and exploit. Exposure to ransomware and cyber extortion is also on the rise. There are several security measures hotel casinos should be taking to prevent losses, along with purchasing Cyber Liability insurance to respond in the event of a data breach or other cyber-related attack.

As slips and falls top the list of claims made in the hospitality industry, Sean stresses the need for hotel casinos to implement and manage robust loss prevention measures throughout the facility including providing ongoing employee education and training and ensuring ADA compliance.

Distinguished Programs specializes in providing hotel casinos with high-limit Umbrella insurance, designed to address catastrophic liability losses. Limits are available up to $250 million. Additionally, we offer risk mitigation and management services to help insureds prevent and minimize potential losses.