Stay Covered: 2025 Insurance Tips for Oregon Operators

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.

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This guest blog was submitted by Rob Hoover of Risk Strategies Fournier Group. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.