Sustainability is becoming a driving force in the hospitality industry. Green hotels, zero-waste bars, and restaurants with LEED certification are no longer fringe concepts — they’re setting new standards. But while these initiatives reduce environmental impact, they don’t eliminate legal exposure. Liability risks are still quite real, and insurance agents must understand how coverage needs shift when businesses go green. With tailored hospitality insurance programs for this sector, RMS Hospitality Group helps address those risks head-on.
As sustainable practices grow more ambitious, so do the potential pitfalls. Non-traditional materials — like reclaimed wood, cork flooring, or low-VOC paints — may come with unforeseen safety issues. A recycled tile might be more slippery than expected. An “all-natural” cleaning product could cause an allergic reaction in guests or staff.
Beyond physical risks, reputational hazards are also on the rise. Sustainability brings increased visibility and scrutiny. If a venue overstates its green claims, it may be accused of greenwashing, which can spark public backlash or legal action.
Indeed, regulatory bodies are cracking down. The Federal Trade Commission (FTC) enforces its Green Guides to prevent deceptive environmental marketing. High-profile cases against major corporations highlight the importance of ensuring that all green marketing aligns with regulatory expectations.
Eco-consciousness doesn’t exempt a business from traditional exposures. The following core liability coverages from RMS Hospitality Group remain vital for any venue, especially those embracing sustainability.
General liability coverage protects against everyday incidents like slips and falls involving third parties. Even if the business has installed green features, a guest tripping on uneven bamboo flooring could still file a claim.
This coverage remains critical for any establishment serving alcohol. Whether the bar is solar-powered or pours only organic wines, alcohol-related incidents remain a risk.
Products and completed operations coverage is especially relevant for businesses using non-standard materials or methods. Imagine a guest has a negative reaction to a “natural” product, or an eco-conscious remodel leads to structural issues that cause injury or property damage. In either case, liability may fall on the business — particularly if they selected the materials or hired contractors directly. This coverage helps address potential claims tied to completed work or products used on the premises.
Excess liability coverage provides additional protection if a business faces a high-dollar lawsuit. For example, an injury involving sustainable materials or a dispute over environmental claims could lead to costly legal claims.
Insurance agents play a key role in balancing their clients’ passion for sustainability with practical risk management. It’s important to help clients understand that while their eco-initiatives may reduce environmental risks, they can introduce new liabilities. Dropping or downgrading coverage based on the assumption that a green business is low-risk could leave significant gaps.
With support from RMS Hospitality Group, agents can offer hospitality clients insurance solutions that evolve alongside their operations. RMS understands the nuances of sustainable hospitality and provides programs built to address modern risks.
A greener hospitality industry is a positive step forward, but it doesn’t mean operators can forgo protection. From recycled building materials to chemical-free cleaners, every new feature has the potential to change a venue’s risk profile. Insurance agents should help clients align their values with smart coverage strategies that protect both mission and margin.
For more hospitality insurance tips and information on how RMS Hospitality Group can help support your clients’ sustainability goals, contact us today.
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
