Hospitality businesses are no longer confined to a single line of service. Spas now serve liquor, barbershops host events, and restaurants add wellness offerings. This convergence of industries is creating new layers of risk – and a greater need for cross-sector collaboration in insurance.
Julia De Stefano (pictured), senior underwriter and team lead for hospitality at South Western Group (SWG), said her team is responding by working across departments to build coverage that reflects these evolving models.
“In the hospitality space, there’s a lot of need for cross exposures… So we are working with our other departments to fit all that need,” she told Insurance Business.
This integrated approach, she added, helps ensure that brokers can secure comprehensive solutions for clients with increasingly complex business models.
“If that looks like two separate policies, or if that looks like extending coverage … to add on errors and omissions coverage, or professional services coverage, then we’ll do that,” she said.
At the same time, SWG has expanded its program to cover higher-liquor establishments, an area that has historically been more difficult to insure. De Stefano said the company built on its program that serves lower-liquor venues by working closely with markets to extend coverage.
“Before I joined, we had a program that is specifically designed for lower liquor establishments, with very competitive rates and comprehensive coverage, and we’ve had a lot of success there,” De Stefano said. “But since I’ve joined we’ve actually worked very closely with our market to get a solution for the higher liquor establishment. We’ve reassessed our rates, we’ve done our research, we’ve added additional coverages and extensions … that help protect the insureds even more.”
De Stefano acknowledged that hospitality remains a volatile class, but said SWG is addressing that through layered coverage and ongoing portfolio reviews.
“For establishments that have multiple exposures or high-risk operations, historically there hasn’t been coverage,” she said. By involving multiple departments and tailoring liability policies, SWG aims to provide solutions that fit more complex accounts.
Customization has become a key tool in managing costs. De Stefano pointed out that add-ons such as errors and omissions or cyber protection can be included under a single policy, rather than forcing clients into multiple stand-alone contracts. “That helps reduce the premium,” she noted, adding that sub-limited policy fees also help keep costs contained.
The group also leans on collaboration with its market partners and brokers to stay aligned with competitive pressures. “We’re always meeting with our markets, we’re always meeting with our brokers, analyzing our rates and making sure we are where we need to be,” De Stefano said.
This mix of flexibility, regular rate reviews, and willingness to adjust coverage allows SWG to navigate both the volatility of hospitality risks and the competitive dynamics of the current market.
Her remarks build on what she previously told Insurance Business about the broader state of the Canadian hospitality market. De Stefano has been clear that the sector is firmly in a soft market – one that has persisted for more than a year and a half – and she expects it to soften further in 2026.
“[We have] been in a soft market for, I would say, a year, or year and a half … and it’s been steadily getting softer,” she said at the time. The trend is being fueled by carriers re-entering the space with fresh capacity and competition, including through subscription policies where multiple insurers share the same risk.
Looking ahead, she warned that while reductions may be slowing, they are likely to continue – particularly in property lines. “Property rates were really high in the hard market, and liability was always flexible,” she said. “So I’ve been seeing a lot of property rate reduction, and I do think that’s going to continue into next year.”
De Stefano pointed out that a broker-centered model needs to be a key factor in how insurance companies approach hospitality underwriting, especially in current soft conditions.
“We have very strong relationships with brokers, and brokers are going to give us the most accurate and up-to-date information of what’s happening in the marketplace,” she said. Regular check-ins, industry events, and active communication ensure her team stays close to emerging trends and shifting client needs, she added.
