Liability and insurance — who pays when a hidden camera is found in your hotel?

The legal reality

When a guest discovers a hidden camera in a hotel room, the hotel is often held liable — regardless of who placed the camera. The operator has a duty of care towards guests, and that duty includes safeguarding privacy and security in the rented space.

Where does liability lie?

In most European jurisdictions, hotels are required to provide a safe environment. The GDPR reinforces this: unlawful image recordings in a hotel room constitute a serious infringement of personal privacy. Data protection authorities can impose fines of up to 4% of annual turnover.

Additionally, an affected guest can file a civil damage claim. In the United States, settlements of tens of millions of dollars are not uncommon. In the Netherlands, amounts tend to be lower, but reputational damage and legal costs are considerable.

Does your insurance cover this?

Many hotel insurance policies — including general liability policies — do not cover damage from hidden cameras as standard. Insurers consider this a foreseeable risk against which the operator should have taken preventive measures.

In practice, this means:

• Liability claims from guests may not be covered if the hotel had no demonstrable security policy
• GDPR fines are almost never covered under standard insurance
• Reputation damage — lost revenue from negative publicity — is rarely insurable
• Investigation costs for forensic investigation and legal support come at the hotel’s own expense

Prevention as an insurance strategy

Increasingly, insurers ask during risk assessments whether hotels actively maintain privacy security policies. A periodic safety assessment and TSCM inspection demonstrate that the hotel takes its duty of care seriously.

Having professional inspections carried out strengthens your position on three fronts:

1. Risk reduction — you detect and remove unauthorised equipment before guests are affected
2. Insurance position — you demonstrate that you have taken preventive measures, which can strengthen your coverage
3. Legal standing — in the event of an incident, you can demonstrate that you fulfilled your duty of care

Certification as demonstrable evidence

Certification through Privacy Shield Group provides hotel operators with independent proof of their security efforts. SAJ Recherche carries out the inspections that form the basis of this certification — from hidden camera detection to keycard fraud testing.

Do not take the risk

The cost of a professional inspection is negligible compared to the potential damage of an incident. Contact SAJ Recherche for a confidential discussion about the risks and solutions for your hotel.