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Statutory or Contractual Limitations on Liability

Hotels may waive, exclude, or limit liability coverage for certain losses or harms, including dollar amount limitations on loss of valuables, and may exclude from coverage any assaults or crimes committed by third parties. It is imperative that guests check their hotel’s policies prior to checking in, to review its liability limitations.

All states have enacted legislation that permits hotels to limit their liability for damage to guests or their personal property. This action even may include limits placed on damages resulting from the hotel’s own negligence (“exculpatory clauses”), unless found to be “unconscionable” in certain jurisdictions.

Whenever hotels intend to limit their liability, it is almost always required that they notify guests in a conspicuous manner. Failure to post adequate notices in conspicuous locations may result in a court finding that the limits are not in effect and that the hotel must cover the entire loss, if applicable.

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