July 21, 2025

Coverage Gaps in Hospitality Insurance: Why Active Assailant Coverage Matters More Than Ever

In today’s tight-margin environment, restaurant and hospitality businesses are more willing than ever to “shop” their insurance. As carriers continue to raise rates—some by as much as 15%—smart business owners are looking for partners who can do more than just quote premiums. They want experts who can spot hidden coverage gaps and help them lower their overall risk.

At PolicySmart, we specialize in independent insurance audits, risk benchmarking, and strategic coverage recommendations that protect businesses where it matters most. And because we are paid based on the savings we deliver, not by selling expensive policies, you can trust that our advice is truly in your best interest.

Here’s where most brokers fall short—and how PolicySmart helps you stay fully protected.

Finding Savings (Without Cutting Coverage)

One of the best ways to help clients offset rising premiums is to take a holistic look at their insurance portfolio. Even small adjustments, like optimizing workers’ compensation coverage, can offset increases in other lines like business owner policies (BOP).

At PolicySmart, we routinely identify smarter coverage structures that reduce costs without exposing businesses to unnecessary risks.

Uncovering Hidden Exclusions That Could Sink You

Many businesses think they’re fully covered—until they’re blindsided by fine print.
A growing trend in hospitality insurance is the inclusion of firearms exclusions and active assailant exclusions, even though these risks can happen anywhere.

Without a standalone Active Assailant Policy, your business could be exposed to devastating liabilities with no coverage in place. Our team has helped businesses across the country recognize and close this critical gap before it’s too late.

Assault and Battery Exclusions: A Common but Dangerous Oversight

Another major risk for hospitality businesses, especially nightclubs, bars, and restaurants, is assault and battery exclusions. Many general liability policies cover little more than basic slip-and-fall incidents. If a patron gets into a fight or an employee is assaulted, the business could be left completely uncovered.

At PolicySmart, our audits frequently reveal these hidden exclusions and help business owners make informed decisions. We believe in selling coverage first, and price second because protecting your business correctly today is far less expensive than facing an uncovered claim tomorrow.

Why Coverage Audits Matter More Than Ever

Post-pandemic labor challenges, rising minimum wages, and supply chain issues have left many hospitality businesses operating on razor-thin margins. Insurance should be a safeguard, not an overlooked liability.

The good news?
An independent coverage and cost audit from PolicySmart can:

  • Uncover hidden coverage gaps.
  • Identify opportunities to lower premiums without increasing risk.
  • Benchmark your insurance program against industry standards.
  • Strengthen your business’s overall risk profile.

We combine cost reduction and coverage optimization into one smart, seamless process, making sure you’re not just saving money, but also strengthening your protection.

Ready to Protect Your Business and Lower Costs?

At PolicySmart, we don’t sell insurance—we fix it.
Our audits focus on what matters: saving you money and closing dangerous coverage gaps that others miss. No hidden commissions. No conflicting advice. Just independent, intelligent solutions.

Schedule your insurance audit today and find out how PolicySmart can help you secure better coverage at a better price.