2026 risk pressures are rising – is your hotel prepared?
In 2026, the UK hotel sector will be shaped by how well operators balance overlapping pressures: from technology and changing consumer habits, to various forms of risks.
With risk issues being addressed at boardroom, an increasing number of hotel owners are asking more of the same questions, such as:
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What risks am I exposed to and do I have the right cover?
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What improvements do I need to make to protect my insurability and avoid premium increases?
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Am I adequately protected should a major incident disrupt my operations?
An insurance review can help you navigate these questions.
By partnering with a seasoned hospitality insurance broker, you gain access to expert guidance that empowers you to make confident investment decisions, put robust risk‑mitigation measures in place, and build proven emergency plans – ultimately strengthening your long‑term insurability and protecting the future of your hotel.
The work we’ve done with one of our hotel clients shows what that can look like in practice: a detailed review, stronger risk presentation, and targeted negotiations helped secure a premium reduction alongside cover enhancements, then delivered further savings across the wider portfolio.
When is an insurance review necessary?
Changes in your business operations: Your insurance requirements vary as your business grows or shifts focus… or even downsizes.
Regulatory requirements: To ensure you’re fully compliant, you’ll need to keep a close eye on whether your current coverage aligns with new laws and regulations.
Key things for hotel owners to consider:
Martyn’s Law, which comes into effect in 2027, will introduce new security requirements for hospitality venues, and will introduce stricter requirements on hotel operations in relation to Terrorism insurance.
Check out this valuable conversation facilitated by Hotel Owner on what Martyn’s Law will mean for the hospitality sector, where we join forces with Team 9 to cut through the noise and share practical, actionable steps hoteliers can take before the new legislation comes into effect: from strengthening security and staff training to understanding insurance implications and reputational risk.
New research shows that employers in the hospitality and leisure sector are facing a rising number of employment tribunal claims, fuelled by high staff turnover, casual working arrangements, and greater difficulty managing grievances effectively. Ensuring your insurance programme is able to respond to such incidents has never been more important.
Asset protection: Buildings, contents, and equipment are not just part of your asset portfolio. They all need to be carefully assessed, protected, and accurately valued, as they may be upgraded, replaced, sold, or even challenged during claims or compliance reviews. Ensuring these assets are correctly insured helps prevent gaps in cover, protect the balance sheet and reduces the risk of costly disputes.
Key things for hotel owners to consider:
Who owns the building?
If you don’t own the property, then the landlord and its insurer are responsible for the reinstatement of the building.
Is your building listed?
If so, this could delay the period of reinstatement of the building, due to the responsibility of reinstating any damage on a like-for-like basis.
Is your hotel a recognised hotspot for high‑profile guests?
If an incident occurs, the reputational fall-out may be significant, and it may take years for the business to return to its previous financial position, even after physical repairs are complete. It’s also worth ensuring you have sufficient Third Party Liability insurance in place to respond to multiple third‑party bodily injury claims that could arise from a serious incident.
Cyber risk:
Hotels are prime targets for cyber criminals due to the payment data they process, the sensitive guest information they hold, and their reliance on complex digital systems. Cyber insurance should therefore be a critical part of any hotel’s risk management programme.
There are 101 reasons why hotels choose Howden to protect what matters most: their people, their income, and their reputation.
Get in touch and request your free insurance review today
