The 10 Deadly Sins of Hotel Insurance: Avoid Common Pitfalls

Exploring common mistakes made in hotel insurance such as insuring with Actual Cash Value, ignoring mechanical equipment coverage, lack of understanding deductibles, not checking previous losses, overlooking EPLI insurance, business interruption coverage, and risk management strategies. Valuable insights for hotel owners and managers to secure comprehensive insurance protection.

• Hotel Insurance
• Common Mistakes
• Coverage Pitfalls
• Risk Management
• EPLI Insurance

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Uploaded on Sep 02, 2024 | 0 Views

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1. The 10 Deadly Sins of Hotel Insurance Presented by: Eve L Hoelzel Licensed Insurance Agent Footer Text 9/2/2024 1

2. Sin #1 Insuring your hotel with Actual Cash Value instead of Replacement Cost. Actual Cash Value and Market Value are lower than Replacement Cost. Include reconstruction annual inflation. Include Building Ordinance coverage Footer Text 9/2/2024 2

3. Sin #2 Ignoring your mechanical equipment Pays for direct damage to insured's machinery and equipment from mechanical breakdown. Ex. Walk-In Coolers Elevators Air Conditioning and Refrigeration Systems Heating and Ventilation Equipment Footer Text 9/2/2024 3

4. Sin #3 Not understanding or knowing your deductible Percentage vs Flat deductibles How will it apply for multiple damages? Co-Insurance Footer Text 9/2/2024 4

5. Sin #4 Not checking previous losses when buying a new property Obtain the Loss Runs from the prior carrier to be certain of any prior building problems (water, sewer, etc), liability or workers compensation claims. Footer Text 9/2/2024 5

6. Sin #5 Ignoring the need for EPLI insurance EPLI = Employment Practices Liability Insurance Lawsuits filed by employees against employers. Sexual harassment Discrimination Wrongful termination Breach of employment contract Negligent evaluation Failure to employ or promote Wrongful discipline Deprivation of career opportunity Wrongful infliction of emotional distress Mismanagement of employee benefit plans Footer Text 9/2/2024 6

7. Sin #6 Overlooking the best kept secret: Business Interruption Insurance It should be a critical part of your annual insurance review. Business income from 12 months to 36 months. Extended business income options for 60-90 days. Footer Text 9/2/2024 7

8. Sin #7 Not preparing a risk management strategy to protect your hotel If you have the proper insurance, you still need to be prepared with deductibles and future increase of premiums. Avoid filing small claims with an emergency budget. Footer Text 9/2/2024 8

9. Sin #8 Not adding cyber liability coverage Protects business and customer data Unauthorized access, theft of or destruction of data. Discretionary notice to individuals potentially affected Footer Text 9/2/2024 9

10. Sin #9 Rejecting umbrella coverage A business umbrella policy picks up where your general liability or other liability coverage stops. Umbrella insurance is an inexpensive way to provide extra coverage. For example, if your current policy covers you for $2 million and you are successfully sued for $2.5 million, your business umbrella insurance coverage can pay the outstanding $500,000 Footer Text 9/2/2024 10

11. Sin #10 Hire an Agent with hotel experience An Insurance Agent with enough market and volume in hospitality will negotiate the best price for you with the underwriter. Footer Text 9/2/2024 11

12. Dont be a Sinner! Protect your business Thank You Footer Text 9/2/2024 12