Does Your Hotel Liability Policy Exclude Assault and Abuse Claims?

There is a good chance it does, or that it caps those claims at a much lower limit than the rest of your policy. Assault and battery exclusions, abuse and molestation exclusions, and sublimited "limited assault" endorsements have become common on hotel general liability policies. At the same time, lawsuits alleging guest assaults and human trafficking at hotels have grown sharply. If you have not read the endorsements on your current policy, this is the section to read first.

What does an assault and battery exclusion do?

It removes coverage for bodily injury arising out of an assault or battery, and often for claims that the hotel failed to prevent it. Broad versions apply no matter who committed the act: an employee, a guest, or a stranger in the parking lot. They frequently reach negligent security, negligent hiring, and negligent supervision claims as well, because those claims "arise out of" the assault.

For a hotel, that is a large gap. Typical scenarios include:

• A guest assaulted in a parking lot or stairwell sues for inadequate lighting or security
• A fight at a hotel bar or event injures a bystander
• An employee is accused of assaulting a guest
• A guest is injured while staff try to remove an aggressive visitor

What is the difference between an exclusion and a sublimit?

An exclusion removes the coverage. A sublimit keeps it but caps it. A policy with a $1 million per occurrence general liability limit might carry assault and battery coverage at $100,000 or $250,000. Sublimits are better than nothing, but a serious injury claim can exceed them quickly. Also check whether defense costs erode the sublimit and whether your umbrella sits above it. Many umbrellas exclude what the underlying policy excludes or sublimits.

How do abuse and molestation exclusions relate to trafficking claims?

Abuse and molestation exclusions remove coverage for injuries arising out of sexual abuse or molestation, often including claims that the insured failed to prevent it. Carriers have relied on them, along with assault exclusions, to deny hotel trafficking claims.

Those claims are a growing exposure. Survivors can sue under 18 U.S.C. Section 1595, the civil provision of the Trafficking Victims Protection Reauthorization Act, alleging a hotel knowingly benefited from a venture it knew or should have known involved trafficking. In July 2025, a federal jury in Georgia returned a verdict of roughly $40 million against a hotel in what has been reported as the first jury verdict of its kind under the statute.

Have courts upheld these exclusions against hotels?

Not consistently, which is why policy wording matters so much. Several federal courts have found that insurers still owed hotels a defense in trafficking suits. One court reasoned that allegations a hotel "should have known" about trafficking, or allegations of false imprisonment, fell outside an abuse or molestation exclusion. In 2026, a federal court in Ohio found that trafficking lawsuits against a hotel company could qualify as covered occurrences under a general liability policy.

Other courts have reached different results on different wording. The takeaway is not that these claims are covered. It is that the exact language of your exclusion, and the exact allegations in a lawsuit, decide the outcome. Owners should not assume coverage, and they should not assume a denial is final.

What should hotel owners look for in their policy?

At your next renewal, ask your agent for answers to these questions in writing:

• Does my general liability policy carry an assault and battery exclusion, an abuse and molestation exclusion, a human trafficking exclusion, or a sublimit? Which form numbers?
• If there is a sublimit, what is it, and do defense costs reduce it?
• Does the exclusion apply to acts by "any person," or only to acts by insureds or employees?
• Does it exclude negligent security, hiring, or supervision claims?
• Does my umbrella follow the same exclusion, or does it provide coverage above a sublimit?
• Does my franchise agreement require coverage that this exclusion removes?

Not every market writes these coverages the same way. Some carriers offer full limits, some offer sublimits, and some exclude them entirely. Price is only one part of comparing quotes.

What can hotels do to reduce the risk?

Insurance follows operations. Underwriters look closely at:

• Lighting, cameras, and access control in parking areas, stairwells, and side entrances
• Written security procedures and incident reporting
• Employee background checks and training
• Human trafficking awareness training for front desk and housekeeping staff, which several brands now require
• Policies on cash payments, ID verification, and repeated short stays

We wrote a separate guide on recognizing human trafficking at hotels. You can find it with our other resources on the hospitality insurance page.

Frequently asked questions

Can I buy back assault and battery coverage?

Often, either through a limited coverage endorsement or a policy from a different carrier. Limits and pricing vary widely.

Does employment practices liability cover an employee assaulting a guest?

Generally no. Employment practices liability covers claims by employees, such as harassment or discrimination. A guest's injury claim is a general liability matter.

Will security guards eliminate the need for this coverage?

No. Security reduces the risk, but negligent security claims can still be brought. If you hire a security contractor, require them to carry their own liability insurance and name the hotel as an additional insured.

Find out what your policy actually says

If you own or operate a hotel in Guadalupe, Comal, or the surrounding counties, send us your general liability and umbrella policies. We will tell you which exclusions and sublimits apply and what options exist to close the gap. Call 830-303-8300 or visit our hotel insurance page.