Hotels & Motels & Resorts

Workers’ Compensation in the Hotel, Motel & Resorts Industries

The cost of workers’ compensation insurance for employers who operate the independent hotels or motels is slightly below the average cost of work comp insurance in general.

  • The work comp coverage is readily available from various insurance carriers.
  • The large national and international hotel chains usually self-insure their work comp exposure.

The workforce of a hotel usually consists of:

  • A small management group
  • Housekeepers, which are the bulk of the workforce
  • Front desk clerks
  • Food service personnel
  • Maintenance staff

The workforce is constantly changing due to low pay levels for housekeepers. Most of the employees have low levels of education, have only a limited understanding of workers’ compensation insurance, and limited loyalty to the employer, although that is certainly not always the case.

Physical hazards for employees of hotels include:

  • Cleaning chemicals
  • Lifting of objects
  • Musculoskeletal injuries – common due to such activities as bending over to clean bathrooms and to make beds.
  • Slips and trips
  • Repetitive motion injuries – incurred due to the motions of hand cleaning and vacuuming.

Most hotels and motels are located in towns and cities where medical care will be available from nearby medical providers. Large hotel chains with a risk management department will have a designated medical provider in those states where they are allowed to do so.

The overall cost of temporary total indemnity benefits is lower than average due to the low severity of most injuries.

  • Permanent partial disability benefits occur infrequently.
  • Repetitive motion injuries occur more frequently to hotel employees than they do in most other industries.

Some categories related to hotels and motels that would have the same or similar work comp issues include:

  • Resorts
  • Vacation rental homes companies
  • Timeshare units
  • Vacation condominiums companies
  • Boarding houses
  • House boat rental companies

Transitional / Modified Duties in the Hotel / Motel / Resort Industry

Employees of Hotels, Motels and Resorts are generally easily accommodated on a temporary basis when restricted from performing their full duty jobs. If there is an applicable union contract, be sure to review the terms to verify modified duty is not prohibited or restricted. Job tasks at these establishments are usually not heavy in nature and temporary transitional opportunities include:

Concierge: Assist clients with errands and providing information.
Housekeeping: Provide restaurant assistance folding napkins or banquet set-up.
Front Desk Clerk : Accommodation could include sitting on a stool as needed.
Hostess: Seating clients in restaurant.
Server: Beverage Service – keeping water glasses full during events.

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