OLCC Warehouse Breaks Ground: On April 16, the Oregon Liquor and Cannabis Commission (OLCC) officially broke ground on its new 347,000-square-foot distilled spirits distribution center in Canby. ORLA's President & CEO, Jason Brandt, spoke at the OLCC's groundbreaking ceremony, applauding the agency's commitment to better serve the industry with more efficiency.

Impacts of Tariffs: Last week, AHLA sponsored a members-only webinar on "Tariffs: What Hoteliers Need to Know." Leaders from AHLA Platinum Partner Avendra International, Allied Member Bernhardt Hospitality, and Benjamin West spoke with AHLA's Matt Carrier about the potential effects of tariffs on the hotel industry and how hoteliers can prepare. AHLA members can watch the conversation here. For additional background information on this issue, please contact Matt Carrier.

Operational Insights: The NRA's 2025 Restaurant Operations Survey is open through May 31 and Oregon restaurant operators are encouraged to participate. We will use this data (including average restaurant profit margins in Oregon compared to national averages) as foundational data points to help prove the need for a healthier climate for restaurants. All participants will receive a free copy of the Restaurant Operations Data Abstract (valued at $200), which contains important financial data to help restaurant operators measure their performance.

Travel Oregon's 2025-2027 Strategic Plan: A draft plan and budget was posted last week with opportunity for public comment through May 16. The Oregon Tourism Commission will consider and adopt the final 2025-2027 strategic plan and budget on June 10. The public comment period is open through May 16 to anyone who wants to provide feedback.

Oregon Restaurateurs in D.C.: ORLA's government affairs team, along with half a dozen Oregon operators, recently returned from the National Restaurant Association's Public Affairs Conference in Washington, D.C., where more than 600 operators from around the country were in attendance. Oregon delegates were able to meet with every Oregon congressional office, including Senator Jeff Merkley and Congresswoman Maxine Dexter. If you’re interested in getting more involved in advocacy at the state or federal level, check out these opportunities.

Webinar on Tipping and Teen Employment: Staying compliant with labor laws is critical — not just to avoid costly penalties, but to build a fair, efficient, and legally sound workplace - and the FLSA has strict guidelines that every operator must understand. ORLA is hosting a webinar on May 6 where a representative from the U.S. Department of Labor's Wage & Hour Division will walk hospitality employers through key provisions of the Fair Labor Standards Act (FLSA), with a focus on two high-risk areas: tip regulations and youth employment. Register here.

Premiums are climbing in Oregon, insurers are tightening the rules, and risks are expanding. But with savvy planning and some changes to how you handle risks, you can take charge of your insurance program. Here’s what to expect for the balance of 2025, along with steps you can take to protect your balance sheet.

Property insurance headaches (and fixes)
Property insurance rates are up across the country, with hospitality businesses seeing average hikes between 17% and 26%. Experts predict wildfire risk will increase in Oregon, which makes insurers more cautious about what they’ll cover. If your building doesn’t meet their standards, you’ll likely face higher premiums or fewer coverage options.

What insurers expect

• Fire suppression systems: Sprinklers aren’t optional anymore.
• Updated buildings: Insurers prefer properties built after 1990 with modern electrical systems, sturdy roofs, and fire-resistant materials.
• Detailed revenue tracking: Underwriters want to understand the business interruption risk. If you’ve got multiple entities under your roof, you’ll need to provide revenue data for each one.

What you can do

1. Inspect your building: Identify issues like old wiring, missing sprinklers, and other risks. 
2. Budget for upgrades: Develop a three-year maintenance plan, prioritizing repairs that will mitigate the highest risks.
3. Show your work: Save proof of improvements like roofing upgrades or installing wildfire-resistant vent covers.
4. Double-check replacement costs: Make sure your insurance reflects how much it would actually cost to rebuild today.

Liquor liability pressure in Oregon
Liquor liability insurance is making life tough for bars, restaurants, and venues in Oregon, where lawsuits are common. Establishments get roped into lawsuits even if their connection to an alleged incident is shaky. To make matters worse, Oregon gives people 180 days to file liquor liability complaints. Without strong documentation, it’s hard to prove what transpired six months ago.

What’s happening

• Shrinking policies: Insurers are restricting or excluding coverage for assault and battery or any claim involving a firearm.
• Higher rates: Businesses with open claims or lots of alcohol sales are seeing premiums double, triple, or worse.
• Lawsuit risks: Lawyers are targeting multiple businesses in one lawsuit, hoping to boost settlement amounts.

How to push back

1. Train your staff: Teach your team how to recognize intoxication, check IDs, and keep clear records of issues. Make training a regular thing, not a one-off.
2. Keep video longer: Adjust your security camera retention policy to save footage for at least 180 days to match Oregon’s lawsuit window.
3. Pair drinks with food: Encourage guests to order appetizers or meals with their drinks to prevent overconsumption.
4. Rethink your hours: Consider closing at 11:00. Being open late means higher insurance rates.

Staying ahead of cybercrime
Cybercriminals target hospitality businesses to nab credit card data and other personal information. Whether it’s phishing scams or ransomware, a cyberattack can throw your operation into chaos. Recovery costs average $5M, so getting hacked can put you out of business.

What to watch for

• Insider threats: Most cyber breaches happen because of your own employees, either accidentally or intentionally.
• Vendor gaps: Are you relying on vendors to handle data security? Double-check your contracts, because many leave you carrying some or all of the responsibility.

How to defend yourself

1. Tighten vendor agreements: Confirm what protections and guarantees vendors actually provide. You have ultimate responsibility for securing your patron’s data.
2. Establish a verification process: Train employees on how to check the authenticity of a financial or data request.
3. Get cyber coverage: Insurance doesn’t just cover costs. It connects you with experts who’ll guide you step-by-step to recover from a breach.

Workers’ compensation woes
Workers’ compensation costs are climbing in Oregon. Rising payroll costs tied to higher minimum wages weigh heavily on hospitality businesses. Additionally, many teams are understaffed or relying on less-experienced hires, which can lead to workplace accidents.

What’s driving costs

• Higher MODs: Increased claim frequency and severity drive up your experience modifier (MOD), the key number insurers use to calculate your rates.
• Lax safety programs: With staff turnover and margin pressure, it’s easy for training and safety to fall by the wayside.

How to save

1. Prioritize safety: Conduct regular walkthroughs to spot risks like tripping hazards or sharp edges before they cause accidents.
2. Create a safety culture: Make safety everyone’s job by encouraging employees to report risks and rewarding proactive behavior.
3. Document everything: Keep detailed records of training sessions and accident responses. This can help you in your insurance negotiations.
4. Spread out workloads: Tired workers make mistakes. A well-rested team reduces injuries.

Get in the driver’s seat
Insurance might feel out of your control, but smart decisions now can change how insurers see your business. Check out ORLA’s Hospitality Insurance Program (HIP). The Risk Strategies Fournier Group, which manages HIP, deeply understands Oregon’s hospitality scene and can tell your story to underwriters. Don’t wait until the last minute either. Begin the conversation a few months before renewal to boost your chances of getting better rates and terms.
Wildfires, lawsuits, and payroll pressures may be challenging, but businesses across Oregon continue to thrive. By tackling risks, choosing prevention over reaction, and documenting your progress, you can take back control over your insurance costs. | Rob Hoover

Rob Hoover of Risk Strategies Fournier Group manages ORLA’s Hospitality Insurance Program (HIP). Contact him for additional ideas on how to control insurance costs.