How India’s luxury sector is using insurance to safeguard green investments

India’s luxury hospitality sector is turning to customised insurance solutions to address emerging risks and support sustainability initiatives, as traditional policies often fall short in covering complex exposures. Rising digital dependency, climate-related uncertainties, and intricate guest services are driving hotels and resorts to explore tailored policies that safeguard their investments and operations.

According to Prudent Insurance Brokers, an insurance broker in India, the hospitality industry is seeking comprehensive liability and property insurance solutions that can cover everything from environmental risks to guest-related liabilities.

Customised coverage is emerging as a critical financial tool, particularly as properties invest in eco-friendly infrastructure.

Sustainability has become more than a trend—it is a business imperative.

Hotels are adopting renewable energy,

water conservation measures, and improved waste management systems.

“At our properties, we have introduced water-efficient laundry practices, switched to bathroom dispensers to reduce single-use plastics, and increasingly rely on biodegradable amenity packaging. These small but impactful steps, when scaled, create meaningful change,” said Pardeep Kumar Siwach, DGM – Accommodation at Mayfair Spring Valley Resort, Guwahati.

Insurance is supporting this shift by incentivising green investments.

Prudent Insurance Brokers notes that properties adopting sustainable practices may benefit from tailored policies or lower premiums, mitigating the financial burden of upfront eco-friendly investments while reducing exposure to climate-related risks.

Operational benefits are also clear.

Hotels implementing energy-efficient systems, solar power, and water recycling report cost savings and higher efficiency.

“Switching to energy-efficient systems and renewable power has cut utility bills, while water recycling has reduced freshwater dependency. Eco-conscious travelers, particularly millennials and Gen Z, actively choose hotels with sustainable practices, leading to higher repeat stays and stronger reviews,” said Rahul Deb Banerjee, COO of The Clarks Hotels & Resorts.

The move toward sustainability is also influencing brand positioning.

“Families today want holidays that spark conversation, not just photos. They’re choosing destinations where children can explore, learn, and connect,” said Saba Dhanani, Corporate Head – Marketing and Communications, Sayaji group of hotels.

For India’s luxury hospitality sector, customised insurance is no longer optiona. It is a financial strategy that protects investments, enables sustainability, and strengthens long-term brand value.