India’s luxury hospitality sector is undergoing a significant shift in how it approaches risk and insurance coverage, driven by rising guest expectations, digital integration, and operational complexities. Industry experts highlight that many premium hotels and resorts are now re-evaluating their insurance portfolios to cover emerging risks such as cybersecurity threats, data breaches, guest liability, and business interruption.
With the sector seeing a resurgence post-COVID, increased occupancy rates, and higher-value bookings, the financial impact of potential claims has grown substantially. Yet, several properties remain underinsured, particularly in areas like cyber liability and disaster recovery.
Insurers are now offering tailored policies with add-ons like event cancellation, liquor liability, and terrorism cover to meet the evolving risk profiles of luxury properties.
Experts urge hospitality players to conduct regular risk audits, update asset valuations, and adopt customised coverage to ensure holistic protection. As customer expectations rise and the operating environment becomes more dynamic, insurance is emerging as a strategic necessity for safeguarding reputation, revenue, and resilience.
