Although a hotel’s liability is limited by statute, the limitation applies only if the hotel has followed the requirements of the statute concerning conspicuously posting notice of the availability of safes, etc. In the situation where those requirements are not followed, the limitation would not apply and the hotel could be responsible for the full value of the stolen or damaged property.2 It is important that hotel management is familiar with the law applying in their state as well as any updates to the law. A website is available that describes the various state statutes,3 but keep in mind that these statutes can change. Insurance is available for innkeeper’s liability through an innkeeper’s liability policy or through the Guest’s Property endorsement available with the Crime insurance policy. Check with your agent or broker to determine specifically what he or she recommends. Innkeeper’s Liability for Loss to Guest’s Property Continued PAG E 2 800.382.2468 | AdjustersInternational.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com | 126 Business Park Drive | Utica, NY 13502 Copyright © 2018 Rising Phoenix Holdings Corporation. All Rights Reserved. Adjusters International and the AI logo are registered trademarks of Rising Phoenix Holdings Corporation. Insights for Your Industry® is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases. E01-1002-V1 ________________________________________________________________ 2In Paraskevaides v. Four Seasons, a hotel guest placed jewelry worth $1.2 million in the in-room safe. When it was stolen, Paraskevaides sued the hotel for the full value of the jewelry. The hotel denied the claim asserting its liability was limited to $1,000 based on the innkeeper’s liability statute applicable in the District of Columbia. The trial court ruled for the hotel, but the decision was reversed on appeal. The Appeals court held that the statute required the hotel to conspicuously post notice of the availability of a hotel safe for safekeeping of valuables, including notice of its limited liability, in both the guest rooms as well as in the public area of the hotel. While the hotel posted this notice in guest rooms, it did not post such notice in the public area. Hence the hotel failed to comply fully with the innkeeper’s liability statute which would have limited its liability. 3Go to: www.inn-security.com/resources/innkeeper_statutes_manual.pdf The list of statutes is provided by National Specialty Underwriters, Inc. (NSU), Bellevue, WA, tel. (425) 450-1090. The firm specializes in insuring hospitality risks, among others. PROTECTING YOUR PROPERTY ®
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