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In the fast-paced world of hospitality, ensuring the safety and security of your guests, employees, and assets is paramount. As a hotel or restaurant owner, your establishment is not just a place of business—it’s a sanctuary for travelers, a home away from home, and a cornerstone of your community. The trust your guests place in you is invaluable, and safeguarding that trust should be at the forefront of your priorities.

At Christensen Group Insurance, we understand that the hospitality industry faces unique challenges when it comes to security and loss prevention. From deterring theft and fraud to managing emergencies and ensuring the overall safety of your property, there’s a lot to consider. That’s why we’re passionate about providing you with the knowledge and tools you need to protect your business and create a secure, welcoming environment for everyone who walks through your doors.

This guide is dedicated to exploring essential hospitality security and loss prevention tips, tailored specifically for the challenges you face in your day-to-day operations. Whether you’re managing a bustling hotel, a cozy bed-and-breakfast, or a high-traffic restaurant, the strategies and insights we’ll share can help you fortify your defenses and minimize risks.

Feel free to skip ahead to the section(s) that are relevant to you to learn more:

• Hazard identification and risk control
• Hotel loss prevention
  • Hotel premises liability tips
  • Hotel security and crime tips
  • Training your staff on human trafficking indicators
  • Hotel property damage tips
• Restaurant loss prevention
  • Restaurant fire prevention tips
  • Restaurant food safety tips
  • Restaurant employee safety tips
  • Restaurant premises liability tips
• Risk management for businesses

What is loss prevention?

Loss prevention refers to the strategies and systems put in place by businesses to minimize and prevent the loss of assets, which can include physical goods, financial resources, and intellectual property. In the context of the hospitality industry, this involves a comprehensive approach to safeguarding businesses such as hotels, restaurants, and other hospitality businesses from theft, fraud, and other risks that could impact profitability and operations.

Loss prevention policies

A robust loss prevention policy is essential for any hospitality business. This policy outlines the procedures and practices that employees must follow to prevent losses. It covers various aspects, including security measures, employee training, inventory control, and customer service protocols. By clearly defining the roles and responsibilities of staff members, a hospitality loss prevention policy helps create a culture of accountability and vigilance.

Loss prevention systems

Loss prevention systems are the technological and procedural tools employed to protect assets. These systems can include surveillance cameras, alarm systems, POS (point-of-sale) monitoring, and inventory tracking software. Implementing advanced loss prevention systems not only deters potential thieves but also helps in quickly identifying and addressing any incidents of loss.

In essence, loss prevention is about being proactive rather than reactive. By investing in comprehensive hospitality loss prevention policies and systems, hotels and restaurants can significantly reduce the risk of loss, ensuring a safer environment for both employees and guests, and ultimately protecting your bottom line.

Hazard identification and risk control

By implementing a system of hazard identification and risk control, you can prevent workplace injuries as well as property losses. There are three basic steps.

1. Identify hazards—Consider every area of your workplace when looking for hazards. Think about conditions or work activities that could put your employees or guests at risk.
2. Assess the risks—Once you have identified a hazard, evaluate the risks associated with it. There are two basic questions to ask when considering a hazard: how likely is an incident, and how serious would it be if it occurred? A risk assessment will help you prioritize the hazards so you know which ones to deal with first.
3. Control the risks—Once you’ve identified hazards and assessed the risks, look for ways to control them. The basic types of controls are elimination, substitution, engineering controls, administrative controls, and personal protective equipment.

Hotel loss prevention

Operating a hotel comes with a wide variety of challenges. After all, hotel owners must consistently deliver exceptional accommodations, maintain numerous on-site amenities, and ensure a safe and enjoyable lodging experience for every guest. What’s more, hotel operations also carry many liability, security, and property risks—all of which could lead to costly damages.

That’s why it’s vital to have an effective hotel loss prevention plan in place. This section will outline common risks hotel owners must address and offer helpful strategies to avoid possible claims.

Hotel premises liability tips

Guest safety

• Guest safety should be the main priority for all hotel owners. Without certain precautions in place, guests could experience injuries or illnesses from many avenues during their stays—potentially leaving hotel owners liable. Additionally, proper hotel emergency preparedness plans can go a long way toward protecting guests during a fire or other unanticipated disaster. Therefore, hotel owners should follow these measures to promote guest safety:
• Train employees on safe food-handling measures and how to avoid cross-contamination issues when working with raw meat.
• Have floor plans and escape routes clearly posted throughout the hotel to better assist guests in the event of an emergency evacuation.
• Clear emergency exits of any obstructions.
  • Be sure these exits are illuminated with proper signage.
• Have all emergency lighting installed and routinely inspected by qualified professionals.
• Keep the parking lot in good condition with regular inspections and maintenance.
  • Repair cracks, potholes, and other possible slip and trip hazards as needed.
• Ensure adequate snow removal and de-icing protocols are in place throughout the property during winter.
• Place water-resistant rugs at all property entrances to eliminate slip and trip concerns from excess moisture during adverse weather conditions (e.g., rain and snow).
• Ensure that an appropriate number of smoke detectors and carbon monoxide alarms are installed throughout the property.
  • Keep detectors and alarms on a routine inspection and maintenance regimen.

Pools and fitness areas

Although pools and fitness areas can certainly attract guests, these accommodations also create serious liability concerns for hotel owners. Specifically, pool areas can pose hazards both in and out of the water (e.g., drowning risks, chemical exposures, and slip and trip concerns).

Further, fitness areas often contain various forms of equipment that—if not managed properly—could contribute to guest injuries. As such, hotel owners should utilize these precautions within pools and fitness areas:

• Ensure the pool is designed to meet National Spa and Pool Institute (NSPI) standards.
  • Have NSPI compliance information clearly posted within the pool area.
• Install a self-closing, self-latching gate around the pool area to prevent children from entering it without being accompanied by an adult.
  • Make sure this gate meets all applicable safety codes.
• Establish and enforce appropriate safety rules for the pool area. Such rules may prohibit running in the pool area or diving into the water.
  • Utilize proper signage to inform guests of these rules.
• Implement adequate warning signage throughout the pool area.
• Store all pool chemicals in a safe location in accordance with the manufacturers’ instructions.
  • Keep this location properly secured to prevent guests from accessing it.
• Permit only hotel guests to use both the pool and fitness areas.
  • Require guests to use a keycard or other secured entry method to access these areas.
• Keep all fitness area equipment in good condition with regular maintenance and sanitation protocols.

Hotel security and crime tips

Due to the unique nature of lodging operations—namely, guests staying for extended periods and bringing luggage containing potentially high-value items on the property—hotels are generally more susceptible to crime concerns (e.g., theft, fraud, robbery, and assault) than the average business.

In the event of such crimes, hotels could experience large-scale losses and reputational damages. As a result, it’s crucial for hotel owners to have the following security measures in place:

• Place security cameras throughout the property and post signage to emphasize that hotel operations are being constantly monitored.
  • Train employees on how to correctly operate and maintain security cameras.
• Equip all hotel rooms with adequate access control systems (i.e., locks and latching devices) to ensure guest security.
  • Require guests to use a keycard or other secured entry method to access their rooms.
  • Make sure keycards are recoded or locks are changed if these entry devices are lost or stolen.
• For cash handling procedures, keep all cash, checks, and receipts for the hotel in a properly secured safe until deposit time.
  • Be sure to stagger deposits to prevent criminals from picking up on a pattern and exploiting it.
• Ensure all areas of the property—including the hallways, stairwells, and parking lot—are well-lit.
• Establish effective procedures for reporting robberies at the hotel.
  • Educate employees on these procedures.

Training your staff on human trafficking indicators

To prevent human trafficking at your establishment, it’s important for staff to recognize common indicators of such activities. While no single indicator necessarily constitutes proof of human trafficking, educating employees on the following red flags is a critical first step to identifying potential victims and perpetrators:

• The suspected victim appears nervous, disoriented, confused, timid, submissive, or fearful, avoiding eye contact and interaction with others.
• There’s a tense or uneven power dynamic between the suspected victim and trafficker. Similarly, the suspected victim appears to be constantly monitored by the suspected trafficker.
• The suspected victim shows signs of poor hygiene, malnourishment, physical abuse, restraint, or confinement.
• The suspected victim has few possessions of their own or doesn’t have control over their own money or identification documents. In some cases, victims or traffickers may have no identification on them at all.
• The suspected victim is not permitted to speak on their own behalf. Or, when they do, their words seem scripted.
• The suspected victim is dressed inappropriately for their age or has lower quality clothing compared to others in their party.
• The suspected victim and trafficker leave their rooms infrequently, not at all, or at odd hours. Additionally, it’s common for human traffickers to have their “Do Not Disturb” sign up all the time.
• The suspected trafficker pays for their stay with cash or a preloaded credit card.
• The suspected trafficker has a local address, but stays at the facility frequently and for short periods of time.
• Minors are registered with the suspected trafficker’s room but are left alone for long periods of time. Or, there’s evidence that a minor is present in the suspected trafficker’s room, but no minor is registered with the room.
• Unusual amounts of cash, sex paraphernalia, alcohol or illicit drugs, computers, cameras, or cell phones are present in the suspected trafficker’s room.
• Individuals appear to be loitering in hallways by the suspected trafficker’s room, monitoring the area or exchanging money. In general, there’s a constant flow of people in and out of the suspected trafficker’s room at all hours.

Indicators of human trafficking may not be obvious, and the presence or absence of human trafficking indicators does not necessarily mean criminal activity is taking place at your business. However, the more informed your staff are, the more equipped they will be to intervene.

If an employee suspects human trafficking is occurring at the hotel, they should be instructed to do the following:

• Do not confront the suspected trafficker directly or alert a victim to your suspicions.
• Call 911, particularly if they witness threats of violence, physical assault, or an individual with emergency medical needs. Notify management and security.

Seek help from the National Human Trafficking Resource Center (NHTRC) by calling 1-888-373-7888 or texting “HELP” or “INFO” to BeFree (233733).

Hotel property damage tips

As with any business, hotels face numerous property exposures, especially as it relates to fire, water, and structural damage. Whether it stems from poor maintenance procedures or a lack of prevention protocols, property damage can cause significant interruptions and is often accompanied by costly repairs or replacements.

With this in mind, hotel owners should consider these steps to limit property damage risks:

• Keep the property on a routine landscaping schedule.
  • Ensure any trees, bushes, or other vegetation on the property remain adequately distanced from the hotel.
• Hire qualified professionals to conduct periodic hotel inspections and property maintenance.
• Make sure the hotel is equipped with an appropriate automatic fire sprinkler system.
  • Have the system reviewed regularly to confirm it will be effective in the event of a fire.
• Train employees on how to respond if the sprinkler system experiences any leaks or other damages.
• Ensure sprinkler valves remain locked in the “on” position or are electronically supervised to prevent unintentional system shut-offs.
• Post signage instructing guests to refrain from blocking sprinkler heads or hanging any items on them (e.g., clothes).
• Consider prohibiting smoking on the property.
  • If smoking is allowed, establish a designated smoking area with adequate fire prevention measures in place.
• Install Class ABC fire extinguishers throughout the hotel.
  • Keep extinguishers on a regular inspection and maintenance schedule.
  • Prohibit extinguishers from being obstructed to ensure they will be readily accessible when needed.
  • Train employees on how to safely operate extinguishers.

Restaurant loss prevention

Managing a restaurant brings numerous challenges. After all, restaurant owners must consistently deliver exceptional food and service, maintain a loyal customer base, and ensure employee safety. What’s more, restaurant operations also carry a wide range of property and liability risks—both of which could contribute to costly damages.

That’s why it’s crucial to have an effective restaurant loss prevention plan in place. This section will summarize common risks that restaurant owners must address and includes helpful strategies you can use to prevent potential claims.

Restaurant fire prevention tips

Because restaurants often rely on a variety of heat-producing appliances within their kitchens (e.g., ovens, deep fryers, grills, and more), fire exposures are significant. Without adequate mitigation measures and suppression systems in place, the consequences of a fire incident can be devastating—causing property damage and serious (or even fatal) injuries.

As such, the following restaurant fire prevention protocols should be a top priority for business owners:

1. Key factors for sprinkler system design

Commercial cooking typically falls under a “high-hazard classification” due to the presence of grease and oil, which are both highly flammable.

Application standards:

• NFPA 13 (Standard for the Installation of Sprinkler Systems) governs sprinkler system design, including requirements for density and discharge.
• NFPA 96 (Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations) outlines fire protection for hoods, ducts, and cooking appliances.

1. Density requirements

The water discharge density for commercial cooking areas varies based on the type of hazard and protection provided:

• Light hazard: Typically not applicable for cooking equipment.
• Ordinary hazard (Group 1 or 2): 0.15–0.20 gallons per minute (gpm) per square foot.
• Extra hazard (Group 1 or 2): 0.25–0.40 gpm per square foot.

For kitchen hoods and ducts, pre-engineered systems (e.g., wet chemical systems like the UL 300) are more common.

1. Sprinkler head design

Always use sprinkler heads designed for high heat output and grease-laden environments. These often include:

• Intermediate or high-temperature ratings
• Special corrosion-resistant coatings (especially in damp environments)

For placement, ensure proper coverage, including within hoods and ducts.

1. Integration with kitchen fire suppression systems

Commercial cooking equipment typically employs a combination of:

• Automatic wet chemical systems (e.g., Ansul or Pyro-Chem systems)
• Sprinkler systems designed to provide backup protection or additional coverage for surrounding areas.

Wet chemical systems often take priority for protecting cooking surfaces directly, as they are more effective against grease fires than water.

1. Coordination with NFPA 96

Ensure the hood and duct systems are protected as required by NFPA 96, which may call for:

• Proper placement of nozzles.
• Ensuring automatic shutoff of fuel sources during system activation.
• Regular maintenance and cleaning of hoods and ducts to prevent grease accumulation.

In addition, here are a few more basic restaurant fire-prevention tips to consider:

• Consult a fire protection company to determine what types of devices, alarms, extinguishers, and sprinklers are necessary on the property.
• Utilize commercial-grade kitchen hoods that are fully capable of capturing grease-laden vapors.
• Have all kitchen hoods professionally cleaned on a routine basis.
  • Depending on cooking operations and frequency, hoods should either be cleaned biannually, quarterly, or as recommended by a cleaning professional.
• Install an adequate fire suppression system above any kitchen appliances that have the potential to generate flames.
• Keep the fire suppression system on a regular maintenance and inspection regimen.
• Store Class K fire extinguishers within the kitchen at all times.
  • Note that using an improper extinguisher during a kitchen fire can increase the spread of flames rather than reduce it.
• Give employees adequate training on how to safely use both the fire suppression system and fire extinguishers within the kitchen.
• Ensure fire-resistant barriers are placed between sources of ignition—such as a burner— and flammable liquids—such as the cooking oils from a deep fat fryer.
• Establish a fire safety plan that accounts for both preventive and evacuation strategies.

Restaurant food safety tips

Serving delicious, high-quality food is critical to the success of any restaurant. That being said, poor food safety protocols can have detrimental impacts—potentially resulting in unsatisfied customers, foodborne illnesses, and wasted products due to contamination or spoilage. Further, it can be extremely difficult for restaurants to recover from the reputational damages that often accompany a food safety mishap.

Therefore, to ensure appropriate food safety techniques, restaurant owners should follow these guidelines:

• Train employees on safe food-handling measures and how to avoid cross-contamination issues when working with raw meat.
• Implement an effective food management system to ensure expired products are never used and are always disposed of appropriately.
• Store food in fully sealed and properly labeled containers. Such labels should list the product name and expiration date.
• Organize products in a way that ensures foods getting closer to their expiration dates are used before spoiling.
• Utilize an adequate housekeeping regimen to keep the kitchen clean and organized at all times.
• Establish pest control procedures to prevent potential infestations.
• Keep refrigerators in good working condition through regular inspections and maintenance.
  • Make sure refrigerators are kept at proper temperatures to avoid food spoilage issues.

Restaurant employee safety tips

As with any employer, restaurant owners have a responsibility to protect their employees from illnesses and injuries on the job. Especially in food preparation, safeguarding employees from kitchen hazards (e.g., sharp objects, dangerous chemicals, and hot or slippery surfaces) is vital to prevent potential incidents.

With this in mind, restaurant owners should implement the following employee safety procedures:

• Provide employees with regular safety training.
  • Key training topics should include cooking appliance safety, kitchen housekeeping, and proper knife handling and storage.
• Educate employees on the hazards associated with workplace chemicals—namely, cleaning chemicals.
  • Emphasize what can happen if incompatible chemicals are mixed.
• Establish an in-depth training program for new employees.
  • Require new staff to be mentored or supervised by experienced employees until they are fully competent in their roles and responsibilities.
• Always keep a fully stocked first-aid kit available to assist in the event of minor cuts or burns.
  • Only allow trained employees to administer first aid.
• Install slip-resistant mats throughout the kitchen and in any other areas where walking surfaces could become wet or sticky.

Young Workers

For many Americans, their first job is in the food industry. While the industry provides meaningful employment to younger workers, their inexperience can lead to more workplace injuries. In fact, young workers—those under the age of 24—are twice as likely to get injured on the job than their adult counterparts. Some injuries are even serious enough to cause lifelong disability, chronic pain, scarring, sensory loss, decreased range of motion, and absences from work or school.

Incidents involving young workers are common, particularly for those who don’t take special precautions. This is because:

1. Young workers are often more inexperienced and have different styles of work.
2. Young workers tend to lack a sense of vulnerability and often see themselves as invincible.
3. Young workers are often more afraid to ask questions out of fear of seeming inexperienced.
4. Young workers require training that is unique to them, as their level of development, maturity, and judgment can differ greatly from their adult peers.

Young workers should not simply be considered small adults, and employers need to take special care to protect them from harm. What’s more, there are often certain restrictions on the type of work young workers can do and when—making it all the more important to be thorough when it comes to loss control practices for young employees.

While young workers can be an asset to your business, there are several unique considerations to keep in mind when implementing safe work practices. Please note the Fair Labor Standards Act (FLSA) provides strict guidelines for the type of equipment that underage workers can use/work with. It also dictates the number of hours they can work and in some cases the schedules and seasons of employment.

Restaurant premises liability tips

In addition to establishing a safe work environment, it’s also important for restaurant owners to ensure that their properties are suitable for customers. Whether customers are dining in or ordering takeout, all it takes is a single mishap—such as a slip incident in the parking lot—to result in a costly accident lawsuit.

To avoid such liability concerns, restaurant owners should uphold these measures:

• Keep the parking lot in good repair through regular inspections and maintenance.
  • Make it a priority to fix potholes, cracks, and other slip or trip hazards as quickly as possible.
• Ensure that adequate snow removal and de-icing protocols are in place throughout the property during winter.
• Place water-resistant rugs at all property entrances to eliminate slip and trip concerns from excess moisture during adverse weather conditions (e.g., rain and snow).
• Train employees on proper spill management practices. Specifically, employees should be instructed to clean up spills immediately.
  • In addition, when cleaning up spills, employees should display clear signage that warns passersby of potential hazards.
• Ensure that a sufficient number of smoke detectors and carbon monoxide alarms are installed throughout the property.
  • Keep detectors and alarms on a routine inspection and maintenance schedule.
• Make sure all entrances and exits are properly marked and free of obstructions.
  • Post signage that clearly outlines emergency evacuation routes and procedures.

Learn more about risk management for businesses

Hopefully, now you can see why it’s so important for hotel restaurant owners to implement effective risk management precautions to limit costly insurance claims and lawsuits. Doing so can help ensure guest satisfaction, reduce liability concerns, prevent property damage, and keep your employees safe.

Although this resource provides a range of hospitality loss prevention strategies, hotel and restaurant owners don’t have to navigate their risk management programs alone. Working with a qualified and experienced insurance professional can make all the difference.

For nearly seven decades, the hospitality and restaurant insurance experts at Christensen Group have been cultivating relationships with national carrier partners. This grants us unique access to programs specifically tailored to the hospitality and restaurant world. It's no wonder we've covered over 350 restaurant brands across more than 30 states—three of which were even nominated by the prestigious James Beard Foundation!

Contact us today to review your coverage options and discuss additional hospitality loss-prevention tactics specific to your business.

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This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2024 Zywave, Inc. All rights reserved.