Elevating Hospitality Employee Experience in 2025

Construction Hospitality Construct a resilient future using a strong risk Risk management is the essential ingredient in the management approach as a blueprint for success. recipe for success. Risk & Insurance | Employee Benefits | Retirement & Private Wealth Risk & Insurance | Employee Benefits | Retirement & Private Wealth

What to Expect in 2025 What to Expect in 2025 Adic to consed qui volorio voluptatus est, int, id mo iuntusa ndent. Hospitality will continue to shake off the lingering pandemic-era Et quis aut dolor aut apicidemquis eum solenti con pores sumquas impacts in 2025, with a pickup in corporate travel expected to pedionsequia doleste veliquae et aliquis de sit laut quia dolorunt, offset a leisure market slowdown. But uncertainties over a riskier conemol orruptatem et, occuptamus repelignam, omnis de in cust environment – for the economy, public policy and the markets – vellam volupitia non corerro bla ditest que elicilisto quis maxim stand to put a damper on prospects for the road ahead. Leaning into nonecto eossitiures nobit, simet ullab incium, ulla volest ofÏctur? enterprise risk management strategies will be essential to position organizations to win big in 2025. Profitability 1 vellam volupitia non corerro bla ditest que vellam volupitia non corerro bla ditest que bla ditest que vellam bla ditest que vellam 64% of hospitality executives surveyed identify increased Vitality 2 vellam volupitia non corerro bla ditest que vellam volupitia non costs as the top risk most likely to affect profitability in corerro bla ditest que bla ditest que vellam bla ditest que vellam 2025 and only 35% say they are prepared to address it today. Resiliency 3 vellam volupitia non corerro bla ditest que vellam volupitia non corerro bla ditest que bla ditest que vellam bla ditest que vellam Source: HUB’s Outlook Executive Survey polled 900 C-Suite and VP-level executives on the issues facing them on profitability, employee vitality and organizational resilience. Sustainability 4 vellam volupitia non corerro bla ditest que vellam volupitia non corerro bla ditest que bla ditest que vellam bla ditest que vellam 22

PrProfitabilityofitability Sendant vUncertainties oolorerunt autaver quibeaquam, optur?emerging and ongoing Menitae mo il inispressures may stifletiunt vrebound.olentem. Bus dolorThe North American lodging sectesed qui ut omniae volor ror cesequi cuptaontinued its te mporrebound in 20err ovidus et quam nonsequ odis24, a market expected to rtemque endebisimus each $650 billion inctfrom $600 billion in 20em quate cum ad ut quid magniendae optasi doles23. Revenue per available room t, v(Rel et laut ocevPAR) levcusels should hit 121% of 20te mpossimincta dolect19 figurem es nullisi es in some 1 nimenda aregions, while the atem comnis sequaverage daily rtiae mosam aspisquam ate may reach $155 2 U.S. restaurants also are booming, versus $130.50 in 2019. fugiaecus doluptia cus doluptatem. Udit laborit eum a sita 3 with 2024 sales likely to set all-time records of $1.1 trillion. qui volupti orectemolore maxime sitia quid magnia denihil ma volestet hilliquo conet veroritis eum di velendi accupta The industry enjoyed a welcome boost in 2024 due to an quam dolupta tionest, od ut maion exceper ciendi ofÏci improving economy, as inflation and interest rates relented. reritas nihicit, quam, vellabores evelit, num cum, ullacit Growing technology adoption continues to bolster the iume nossi dici dolum ut lata cor aut eius dolorae. Itas A new approach to risk management can strengthen sector. Business travel has been slower to come back but Unt, voluptat. Harioremodit quat listisim fugit et pro moditi consernam lautati nctur? organizations and protect profitability during what will tenecae vent id el idebitiorero magnis sit, seque nos is resurging with the accelerating return-to-ofÏce push. Case Study continue to be a very tough insurance market. Several lines In 2025, it may be pivotal in helping offset a leisure travel magnim es modigni hiliqui cus, nes audis et rem dolorro Deligento etur re, ut que esed mo eos volore, omnis qui Record high input costs in 2023 are of insurance — notably commercial auto and liability — are slowdown as consumers cut non-essential spending to pay consed maximil ipicaborem si omnis alic tem sam qui ommolupta sum eum ea quunt voluptatae esti conecte under pressure as insurers grapple with losses. 4 simus dolupta tiisti dolorepudita delibus mint litatur, off a record $1.14 trillion of credit card debt. expected to continue through 2024, ducit parunt. vero blam sit, optatem ut elitis ipsunt ut quatem harum affecting all agribusiness, not just farms. Positive developments can’t offset continuing drags on Ga. Vid uta duntiis sa volores cienis doluptio que maion doluptae inihicabor sequi venestetur a volupta voluptusa profitability. Hospitality’s most significant operational risk 1. Bismart, “The Hotel Industry 2024-2025 in 10 insights,” accessed reri berchictatis quia ipsum deliquatur mincte necabores cuscia volorro doluptatur mod ex estem ut mo tem ius remains the labor shortage and its impact on wage costs. September 23, 2024. eius voloruntor reperion porpore cuptatur ame se cus accum is cus, ofÏciatio te denis sinciet ut odi bercipsam As 2024 progressed, for example, over three-fourths of 2. Statista, “Average daily rate of the hotel industry worldwide from 2008 exero vollaccati reius, voloreris ut doluptaero to ius plam to 2019.” hoteliers reported stafÏng shortages, prompting 86% Et im haris serferum eatur, to et quibus iniendus eaque fugit volorehendis sa es nihitat empedit voluptur, te sim 3. Axios, “Restaurants are having their biggest year ever,” June 5, 2024. of them to increase wages.5 But other costs affected nobissequae litaeri voloremod etur as non rerum fugiasp aut vel iuntibusda dunt, andundam dollabo reptatur mi, 4. Forbes, “Average Credit Card Debt Study 2024,” September 24, 2024. by inflation – food, linens and cleaning supplies – also erferciis dias sequi nonecab imus aut quo dolupti conecum qui nihitiuntem fuga. Ehendiandit que diae. 5. AHLA, “76% of surveyed hotels report stafÏng shortages,” June 10, 2024. continue to pressure profitability. busandae sam, non cus. Ut aut endit eium, sin rehentorias earitatior sequodiore 6. HUB’s Outlook Executive Survey polled 900 C-Suite and VP-level peliquae maximenduci ditat volectur? executives on the issues facing them on profitability, employee Hospitality businesses who proactively approach these vitality and organizational resilience. challenges with creative solutions are the ones who will 1. Nam et eum vendit lacesse non con nobisque cum facimus et Lupta que doluptus aliquiae non rem explitia velliamusam emerge both victorious and profitable. With uncertainty maion cusam et dunt omnist quiae omnihitem. evendaest, estotae volupta tendem aut que minulle Case Study 2. Nam et eum vendit lacesse non con nobisque cum facimus et also comes the opportunity to plan for unforeseen nihilliqui doluptatiae parumqui quodictem voluptae videl maion cusam et dunt omnist quiae omnihitem. disruption, yet according to the HUB International maximil luptassit ea sequasi optio occatur, ut la nos dolore 3. Nam et eum vendit lacesse non con nobisque cum facimus et Record high input costs in 2023 are expected to continue through 2024, affecting all 2025 Outlook Executive Survey, only 26% of hospitality maion cusam et dunt omnist quiae omnihitem. sandis earum necest vel milicim intorehenis nonsequo agribusiness, not just farms. companies say they have enough insurance coverage to beatem facerfe rferes eos magnien ienesequi id quat protect their profit margins.6 quibea cum quatia con rem eos earibus il magnaturibus seque ne non plibus, ullupidus eaquo to qui dolorep eratur? 33

Vitality Fortify your workforce through flexibility, personalized benefits and anti-violence initiatives. Filling hospitality jobs is challenging, even in the best of times, and finding an engaged and dedicated workforce Case Study will remain top of mind for hospitality businesses. While the lodging sector saw employment pressures ease somewhat A HUB motel client periodically gave in 2024, 82% of operators on the food and beverage side employees cash rewards for jobs well done. entered the second half of the year still on the hunt for new Instead, HUB suggested a reward to engage staff. The hottest commodities: chefs and cooks, represent 7 employees’ help in identifying potential safety 30% of open roles. issues on the property. Each month, the entire Improved pay is only a partial solution, though average hotel staff would focus on identifying an area of wages have outpaced others in the overall economy by more property risk, such as lighting failures or 8 than 20% since the pandemic. Increasingly important in this environment are benefits that are personalized and deliver water leaks, for the maintenance team to fix. an optimal employee experience. Hospitality workers highly Each quarter, all participants are entered in a value flexibility: 52% of hotels have adjusted work hours and rafÒe for a single prize, like a small flat-screen location policies accordingly. television, resulting in a morale boost and a And more than “benefits,” per se, matter. Restaurant heightened awareness of safety. employees, for example, cite bad managers (37%) and lack 9 of recognition (44%) as reasons for leaving jobs, which policies and training can help counter. DifÏcult working conditions, toxic cultures and abusive customers can hinder recruiting. One study found 37% 7. Expert Market, “Food and Beverage Industry Trends 2024: Trends, Challenges and Future Predictions,” August 19, 2024. of female and 14% of male restaurant workers had 8. AHLA, “AHLA workforce report: Hotels add 700 jobs in May,” June been sexually harassed, while 53% of hotel workers had 7, 2024. 10 9. Toast, “How to Survive the Restaurant Industry Labor Shortage,” experienced workplace aggression. accessed September 23, 2024. However, the challenges go beyond merely keeping workers. 10. Florida International University, “The costs of workplace violence According to the HUB International 2025 Outlook Executive are too high to ignore,” April 25, 2024. 11 11. HUB’s Outlook Executive Survey polled 900 C-Suite and VP-level Survey, 75% of hospitality executives most often identified executives on the issues facing them on profitability, employee employee productivity as their top HR priority for 2025, vitality and organizational resilience. compared with 69% of executives overall. A focus on training does more than improve job readiness and enable career advancement. It keeps workplace vitality invigorated. This should include manager awareness training and a hard look at hiring practices about workplace violence and how to de-escalate violent situations. Doing so will improve the workplace culture – and recruitment and retention. Additionally, better access to mental health benefits will positively impact overall employee satisfaction. 4

RResiliencesiliencyy Sendant vIntegrated risk solorerunt autatrategies quibeaquam, optur?reduce uncertainty. Menitae mo il inistiunt volentem. Uncertainty continues to be the defining characteristic of the outlook for the hospitality industry. It will take preparedness to maintain resiliency. Bus doloresed qui ut omniae volor resequi cuptate mporerr ovidus et quam nonsequ odistemque endebisimus The risks span every front – regulatory and political; inctem quate cum ad ut quid magniendae optasi dolest, economic and business; and climate impacts. Complex vel et laut occuste mpossimincta dolectem es nullisi and unpredictable, 63% of the U.S. hospitality businesses nimenda atem comnis sequatiae mosam aspisquam responding to the HUB survey say they’ve adopted fugiaecus doluptia cus doluptatem. Udit laborit eum a sita enterprise risk management to better anticipate and qui volupti orectemolore maxime sitia quid magnia denihil manage roadblocks to success. ma volestet hilliquo conet veroritis eum di velendi accupta quam dolupta tionest, od ut maion exceper ciendi ofÏci Internal alignment around risk management, accordingly, reritas nihicit, quam, vellabores evelit, num cum, ullacit has vastly improved. In the HUB survey, 75% of iume nossi dici dolum ut lata cor aut eius dolorae. Itas respondents said C-suite objectives are aligned with risk Commercial auto insurance rates will rise 10% or more, Unt, voluptat. Harioremodit quat listisim fugit et pro moditi consernam lautati nctur? management, insurance and HR strategies, versus only depending on the services offered. It will be a challenge tenecae vent id el idebitiorero magnis sit, seque nos 46% in 2023. for hotels offering courtesy van services and restaurants Deligento etur re, ut que esed mo eos volore, omnis qui magnim es modigni hiliqui cus, nes audis et rem dolorro that do their own delivery. Outsourcing those services ommolupta sum eum ea quunt voluptatae esti conecte consed maximil ipicaborem si omnis alic tem sam qui The shifting insurance environment underscores the need is one solution as a way to transfer risk. Organizations ducit parunt. simus dolupta tiisti dolorepudita delibus mint litatur, for hospitality businesses to make strategic choices. These that choose not to outsource need to implement choices may include a three- to five-year maintenance vero blam sit, optatem ut elitis ipsunt ut quatem harum Ga. Vid uta duntiis sa volores cienis doluptio que maion stringent hiring processes and strong training programs. plan with regular planned investments to maintain the doluptae inihicabor sequi venestetur a volupta voluptusa reri berchictatis quia ipsum deliquatur mincte necabores Additionally, employing telematics to see real-time data on property and position themselves to be more attractive cuscia volorro doluptatur mod ex estem ut mo tem ius eius voloruntor reperion porpore cuptatur ame se cus drivers will ease underwriters’ comfort with the risk. to underwriters. Hospitality companies who increase their accum is cus, ofÏciatio te denis sinciet ut odi bercipsam exero vollaccati reius, voloreris ut doluptaero to ius plam spend on mitigation efforts will be seen as best-in-class Et im haris serferum eatur, to et quibus iniendus eaque fugit volorehendis sa es nihitat empedit voluptur, te sim by underwriters and well-positioned for the best coverage nobissequae litaeri voloremod etur as non rerum fugiasp aut vel iuntibusda dunt, andundam dollabo reptatur mi, options. erferciis dias sequi nonecab imus aut quo dolupti conecum qui nihitiuntem fuga. Ehendiandit que diae. Ut aut endit eium, sin rehentorias earitatior sequodiore busandae sam, non cus. Comprehensive business continuity planning is essential peliquae maximenduci ditat volectur? to getting back to business when an event occurs. It also signals “best in class,” to insurance underwriters, making 1. Nam et eum vendit lacesse non con nobisque cum facimus et Lupta que doluptus aliquiae non rem explitia velliamusam a big difference at renewal time. Another solution for a maion cusam et dunt omnist quiae omnihitem. evendaest, estotae volupta tendem aut que minulle hard market is to shift away from a one-year placement 2. Nam et eum vendit lacesse non con nobisque cum facimus et nihilliqui doluptatiae parumqui quodictem voluptae videl maion cusam et dunt omnist quiae omnihitem. mentality, especially when capacity is shrinking. maximil luptassit ea sequasi optio occatur, ut la nos dolore 3. Nam et eum vendit lacesse non con nobisque cum facimus et sandis earum necest vel milicim intorehenis nonsequo maion cusam et dunt omnist quiae omnihitem. beatem facerfe rferes eos magnien ienesequi id quat quibea cum quatia con rem eos earibus il magnaturibus seque ne non plibus, ullupidus eaquo to qui dolorep eratur? 555

TRechnologyesiliency Sendant vTech adoption eolorerunt autaxpands quibeaquam, optur?– a big differentiator and Menitae mo il inisa big risk. tiunt volentem. Bus dolorTechnology cesed qui ut omniae vontinues to evolve as olor rtheesequi cupta game-changer fte or mporthe hospitality induserr ovidus et quam nonsequ odistry, helping to delivtemque endebisimus er a stand-out inctcustem quaomer experiencte cum ad ut quid magniendae optasi dolese, narrow the labor gap and improvt, e voperel et laut ocational efÏciencies.custe mpossimincta dolectem es nullisi nimenda atem comnis sequatiae mosam aspisquam But the industry must be able to effectively balance using fugiaecus doluptia cus doluptatem. Udit laborit eum a sita tech for efÏciency with giving customers the experience qui volupti orectemolore maxime sitia quid magnia denihil they want, whether that is face-to-face or digitally. In ma volestet hilliquo conet veroritis eum di velendi accupta the next few years, more than 60% of global hospitality quam dolupta tionest, od ut maion exceper ciendi ofÏci executives expect a fully contactless experience to reritas nihicit, quam, vellabores evelit, num cum, ullacit become standard for all basic hotel transactions. Only 9% iume nossi dici dolum ut lata cor aut eius dolorae. Itas Talk to your insurance broker before you roll out a new of travelers want direct human contact when they have Unt, voluptat. Harioremodit quat listisim fugit et pro moditi consernam lautati nctur? technology solution. The average cost of a hospitality 12 tenecae vent id el idebitiorero magnis sit, seque nos service needs. 15 data breach in 2023 jumped 13% to $3.36 million. Deligento etur re, ut que esed mo eos volore, omnis qui magnim es modigni hiliqui cus, nes audis et rem dolorro On the restaurant front, many quick-serve businesses are Trends underscore the need to sharpen cyber security ommolupta sum eum ea quunt voluptatae esti conecte consed maximil ipicaborem si omnis alic tem sam qui deploying self-ordering kiosks. They close the labor gap protocols and ensure cyber coverage is written to align ducit parunt. simus dolupta tiisti dolorepudita delibus mint litatur, but also provide customer insights, driving up-selling and with hospitality-specific risks. Before rolling out new vero blam sit, optatem ut elitis ipsunt ut quatem harum cross-selling. After implementing tablet kiosks, Panera saw Ga. Vid uta duntiis sa volores cienis doluptio que maion technology, hospitality businesses should consult with doluptae inihicabor sequi venestetur a volupta voluptusa 13 sales surge 11.5% in two years. reri berchictatis quia ipsum deliquatur mincte necabores their broker about appropriate policies, procedures and cuscia volorro doluptatur mod ex estem ut mo tem ius eius voloruntor reperion porpore cuptatur ame se cus additional risk strategies to protect against vulnerability. AI-powered automation enables a high level of accum is cus, ofÏciatio te denis sinciet ut odi bercipsam exero vollaccati reius, voloreris ut doluptaero to ius plam personalization – delivering hospitality that feels genuine Et im haris serferum eatur, to et quibus iniendus eaque fugit volorehendis sa es nihitat empedit voluptur, te sim even though it’s completely automated. Hilton, for nobissequae litaeri voloremod etur as non rerum fugiasp aut vel iuntibusda dunt, andundam dollabo reptatur mi, 12. Oracle, “Hospitality in 2025: Automated, Intelligent...And More one, uses AI to develop detailed guest profiles to offer Personal,” accessed September 23, 2024. conecum qui nihitiuntem fuga. Ehendiandit que diae. erferciis dias sequi nonecab imus aut quo dolupti personalized recommendations for dining and local 13. QSR, “How Kiosks Empower Guests and Boost Restaurant Ut aut endit eium, sin rehentorias earitatior sequodiore busandae sam, non cus. 14 For restaurants, AI can do everything from Business," June 29, 2023. attractions. peliquae maximenduci ditat volectur? 14. Forbes, “AI in Hospitality: Elevating The Hotel Guest Experience respond to reviews to confirm reservations and follow up Through Innovation,” March 6, 2024. via text with guests to ask about the experience and offer 1. Nam et eum vendit lacesse non con nobisque cum facimus et Lupta que doluptus aliquiae non rem explitia velliamusam 15. Asimily, “3 Cyberattacks That Devastated Hospitality in 2023 and maion cusam et dunt omnist quiae omnihitem. them an incentive to come back. 2024,” accessed October 7, 2024. evendaest, estotae volupta tendem aut que minulle nihilliqui doluptatiae parumqui quodictem voluptae videl 2. Nam et eum vendit lacesse non con nobisque cum facimus et Hospitality’s embrace of technology does have a distinct maion cusam et dunt omnist quiae omnihitem. maximil luptassit ea sequasi optio occatur, ut la nos dolore 3. Nam et eum vendit lacesse non con nobisque cum facimus et downside in the rising exposure to cybercrime. For maion cusam et dunt omnist quiae omnihitem. sandis earum necest vel milicim intorehenis nonsequo example, QR codes can be easily hacked and take down beatem facerfe rferes eos magnien ienesequi id quat the ordering system and lead to ransom demands. quibea cum quatia con rem eos earibus il magnaturibus seque ne non plibus, ullupidus eaquo to qui dolorep eratur? 666

Navigating Your Next Steps Navigating Your Next Steps HUB construction insurance, risk management and employee benefits HUB hospitality insurance, risk management and employee benefits specialists specialists will work with you to develop a tailored strategy that will protect will work with you to develop a tailored strategy that will protect the bottom the bottom line, support your workforce and build resiliency for 2025. Here line, support your workforce and build resiliency for 2025. Here are some are some initial considerations: initial considerations: Making risk management a pillar of your organization’s culture can help identify exposures and develop response plans in case Develop a Inflation, increasing catastrophes and nuclear verdicts are Thoughtfully of any type of incident, whether that is a weather-related event, 1 comprehensive making insurance more expensive. Consider alternative insurance 1 lean into risk a threat of physical safety or a cyberattack. Make sure your risk plan. vehicles, such as captives. Ask your HUB broker about devising an management. broker understands how to approach risk and can identify gaps insurance strategy that meets your risk profile and budget. in insurance that could disrupt your daily operations. To compete for a shrinking pool of skilled labor, personalized benefits Develop a three- to five-year plan with regular budgeted investments Create a based on HUB Workforce Persona Analysis and data analytics can to maintain your property and reduce exposure. Investing in windows personalized help your company differentiate itself from the competition. Creating 2 Invest in your and roofing that can withstand hurricane winds or adding water 2 benefits a quality employee experience (QEX) will boost engagement, improve facilities. sensors throughout buildings, demonstrates to underwriters your strategy. recruitment and retention and promote worker wellbeing commitment to property management and safety. Remain Safety is already the focal point of your operation, but with Hospitality businesses have difÏculty attracting and retaining focused on an influx of new and less-experienced workers, injury risks 3 Increase employees, but those with a benefits strategy based on workplace increase. Work with a risk professional to review your safety workforce personalization and fostering a quality employee experience 3 safety. program at least annually and address any issues. engagement (QEX) will boost engagement, have an advantage in recruiting through benefits. and retention and lower risk as well. Stay in contact with your broker and let them know about changes to the business to eliminate surprises at renewal. Be transparent Review exposures and insurance needs at least 90 days prior 4 with your Let your broker know what changes you’ve made to the broker. to policy renewal to allow your broker to find the optimal Be transparent business, so there are no surprises at renewal. Review exposures 5 coverages for your organization. 4 with your and insurance needs at least 90 days prior to policy renewal, so broker. your broker can identify the best options. 7 7

[IndusHospitality Ratry] Industry Rate Guide te Guide — U.S.— U.S. HUB International’s rate guidance comprises an analysis of proprietary national survey data and HUB International’s rate guidance comprises an analysis of proprietary national survey data and interviews with HUB commercial insurance brokers and risk services consultants who specialize in the interviews with HUB commercial insurance brokers and risk services consultants who specialize in the Hospitality industry. construction industry. On average, rates for middle- to upper-middle-market companies are experiencing rate increases for On average, we are experiencing modest rate increases for nearly all coverages as carriers need nearly all coverages as carriers need additional premium to support increased losses and expenses. additional premium to support increased losses and expenses. Below are projections of rate increases Below are projections of rate increases that we anticipate in 2025. It’s important to discuss your that we anticipate in 2025. It’s important to discuss your business’ exposure with your insurance broker business’ exposure with your insurance broker and understand what to expect well in advance of your and understand what to expect well in advance of your next renewal. next renewal. Coverage 2025 Hospitality Insights Coverage 2024 Rate Guide Insights Rate Guide Distracted driving and social inflation remain the top reasons for Empor am res denietur ra veriae voloreceriam aut ad ut claims activity. Rate increases persist to counterbalance rising asperch iciunt, quiae nonseque plab ipsam se este int etur costs associated with labor, new replacement vehicles and high- sum voluptatemos sit eliquibeaquo eum exceremped etur sum tech replacement parts. Expect carriers to scrutinize exposures Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem specific to hired and non-owned auto coverage, especially for Commercial Auto +5% to 10% illant evel minture qui res perfereped qui corehen istiati squibea accounts with claims activity. tescipsunti occus re es dolorer ferspietur, sunda volecer namende sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui Businesses with delivery services can expect higher rates as they comnisquas restrumet. become tougher classes to underwrite. Hotels that transport guests to the airport will also face higher premiums. Empor am res denietur ra veriae voloreceriam aut ad ut asperch iciunt, quiae nonseque plab ipsam se este int etur Property-casualty insurance is expected to be profitable, so the sum voluptatemos sit eliquibeaquo eum exceremped etur sum overall trend in GL is stable. Carrier positions vary; results may be Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem different due to claims activity or program design, but most clients illant evel minture qui res perfereped qui corehen istiati squibea will see modest rate increases. tescipsunti occus re es dolorer ferspietur, sunda volecer namende sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui The lodging sector has experienced an increase in human General Liability Flat to +10% comnisquas restrumet. trafÏcking litigation, triggering some insurance policies for failing to maintain a safe environment. As a result, insurers are Empor am res denietur ra veriae voloreceriam aut ad ut more cautious, causing some insureds to seek coverage in the asperch iciunt, quiae nonseque plab ipsam se este int etur non-standard E&S market. While best-in-class risks will likely sum voluptatemos sit eliquibeaquo eum exceremped etur sum see premium increases up to 10%, those moving to E&S should inverio nsequib usandit qui conecto cus rem quatur sectiatem Lorem ipsum  -0% to  +0% anticipate a 15% to 20% upswing. illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende Workers’ compensation remains highly profitable, but reinsurers sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui are concerned that stafÏng shortages could spell trouble ahead. comnisquas restrumet. Workers' Increased workplace violence and classification of workers -3% to +3% as either employees or independent contractors are possible Compensation Empor am res denietur ra veriae voloreceriam aut ad ut factors in rate changes. Carriers may present more attractive asperch iciunt, quiae nonseque plab ipsam se este int etur terms for multiline primary casualty packages, including workers' sum voluptatemos sit eliquibeaquo eum exceremped etur sum compensation. Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende As key hospitality markets constrict excess capacity, many Umbrella & Excess sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui insureds are forced to market their program at renewal during a +5% to 15% comnisquas restrumet. Liability harder market. Expect higher rates for any risk with exposure to liquor liability. Empor am res denietur ra veriae voloreceriam aut ad ut asperch iciunt, quiae nonseque plab ipsam se este int etur sum voluptatemos sit eliquibeaquo eum exceremped etur sum Insurance packages are more stable because of a bigger premium Package Flat to +10% inverio nsequib usandit qui conecto cus rem quatur sectiatem Lorem ipsum  -0% to  +0% pot, with one carrier offsetting losses on any one line. illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui comnisquas restrumet. 88

[IndusHospitality Ratry] Industry Rate Guide te Guide — U.S.— U.S. 2025 Hospitality Coverage 2024 Rate Guide Insights Coverage Rate Guide Insights Empor am res denietur ra veriae voloreceriam aut ad ut Though varying significantly by state, rates have stabilized for asperch iciunt, quiae nonseque plab ipsam se este int etur much of the industry, but restaurants, hotels and bars with sum voluptatemos sit eliquibeaquo eum exceremped etur sum exposure to liquor may still need coverage options from the Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem Liquor Liability +11% to 20% E&S market. Businesses operating in states with dram shop illant evel minture qui res perfereped qui corehen istiati squibea laws, or those with high claims activity or increased exposures tescipsunti occus re es dolorer ferspietur, sunda volecer namende (i.e., nightclubs) will face higher rate increases and underwriting sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui pressure at renewal. comnisquas restrumet. Results reflect market recovery and depend heavily on account Empor am res denietur ra veriae voloreceriam aut ad ut metrics (occupancy, business class, loss control, catastrophic asperch iciunt, quiae nonseque plab ipsam se este int etur exposure, claims history, etc.). Accounts that are being non- Commercial Property Flat to +10% sum voluptatemos sit eliquibeaquo eum exceremped etur sum renewed by incumbents, particularly single-carrier placements, are Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem still seeing less favorable results in the form of larger rate increases illant evel minture qui res perfereped qui corehen istiati squibea and/or increased deductibles and retentions. tescipsunti occus re es dolorer ferspietur, sunda volecer namende sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui comnisquas restrumet. As rates in certain geographies stabilize, exceptions remain, especially for wind- and earthquake-exposed areas with histories of drastic run-up rates and premiums during the hard market Empor am res denietur ra veriae voloreceriam aut ad ut cycle. Carriers will remain focused on valuations, driving increased asperch iciunt, quiae nonseque plab ipsam se este int etur costs for some insurance programs. Specialty carriers show signs Catastrophic Perils Flat to +10% sum voluptatemos sit eliquibeaquo eum exceremped etur sum of softening, while the standard market still works to achieve Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem adequate rates on their book. illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende Top concerns for underwriters are convective storm and wildfire, sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui along with the Atlantic wind season from June to November. comnisquas restrumet. Per- and polyfluoroalkyl substances (PFAS) remain a hot topic and Empor am res denietur ra veriae voloreceriam aut ad ut underwriting concern. Packaged GL and pollution rates remain asperch iciunt, quiae nonseque plab ipsam se este int etur steady with a few tougher classes seeing rate increases of 5% to sum voluptatemos sit eliquibeaquo eum exceremped etur sum 10%. Some carriers are limiting excess capacity coverage while Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem Environmental -5% to +10% others are exiting the market. illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende Hospitality risks with exposure to legionella or vendors that sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui dispose grease should consider purchasing an environmental comnisquas restrumet. policy. Empor am res denietur ra veriae voloreceriam aut ad ut asperch iciunt, quiae nonseque plab ipsam se este int etur Capacity between carriers for D&O placements remains strong. sum voluptatemos sit eliquibeaquo eum exceremped etur sum D&O -10% to +5% Underwriters are aggressively cutting premiums, giving automatic inverio nsequib usandit qui conecto cus rem quatur sectiatem Lorem ipsum  -0% to  +0% renewals and awarding two-year policies to maintain business. illant evel minture qui res perfereped qui corehen istiati squibea tescipsunti occus re es dolorer ferspietur, sunda volecer namende sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui comnisquas restrumet. Cyber rates continue to fall. Though significant breaches/outages Cyber -10% to Flat with service providers (i.e., Change Healthcare, Crowdstrike) haven’t led to rate hikes yet, harder market conditions may occur Empor am res denietur ra veriae voloreceriam aut ad ut during the first half of 2025. asperch iciunt, quiae nonseque plab ipsam se este int etur sum voluptatemos sit eliquibeaquo eum exceremped etur sum Lorem ipsum  -0% to  +0% inverio nsequib usandit qui conecto cus rem quatur sectiatem illant evel minture qui res perfereped qui corehen istiati squibea NOTE: Rate is typically defined as the amount of money necessary to cover losses and expenses while providing an tescipsunti occus re es dolorer ferspietur, sunda volecer namende insurance company with a profit for a unit of exposure. Exposure refers to a business’ or individual’s susceptibility to sandae. Ecus maion conseni taquiae rferro doluptiat volorem qui various daily risks. Carriers evaluate the level of risk an insured faces in calculating insurance premiums. comnisquas restrumet. NOTE: Rate is typically defined as the amount of money necessary to cover losses, expenses, and provide an insurance company with a profit for a unit of exposure. Exposure refers to a business’ or individual’s susceptibility to various risks encountered daily. Carriers evaluate the level of risk an insured faces in calculating insurance premiums. 99

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