Hotel Insurance Crisis: Ways Hoteliers Can Secure Coverage When Insurers Are Saying No
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Facing rejection from insurers? Discover how savvy hoteliers are finding coverage in a market where "uninsurable" is becoming the norm.
In today's volatile market, many hoteliers are facing a nightmare scenario: insurance companies are increasingly reluctant to provide coverage, leaving properties vulnerable and owners scrambling. If you're hearing "no" more often than "yes" from insurers, you're not alone. Here's how to navigate this crisis and secure the coverage your hotel needs.
Understanding the 'No'
Insurers are pulling back due to:
- Increased natural disaster risks
- Rising repair and replacement costs
- Growing liability concerns, especially around human trafficking
- Cyber threats and data breaches
Strategies to Secure Coverage
Beef Up Your Risk Management
- Implement robust security measures
- Conduct regular staff training on safety and liability issues
- Document all risk mitigation efforts meticulously
Consider Higher Deductibles
- Offering to take on more risk can make you more attractive to insurers
Work with an Experienced Broker
- A broker who has specialized in hospitality and has access to numerous company can often find coverage when others can't
- They can consider specialized markets with surplus lines insurers who may be willing to take on higher risks
Consider Self-Insuring Against Certain Risks
- With the high cost of insurance and low availability to insurance, consider “self-insuring” certain risks to make premiums more management until the market changes.
Bundle Policies
- Combining different types of coverage can sometimes make your business more attractive to insurers
On the flip-side, it may be more advantageous to place Property with one carrier and other Liability policies with a separate insurer
The Bottom Line
Securing hotel insurance in today's market requires creativity, diligence, and a proactive approach to risk management. By implementing these strategies, you can increase your chances of finding the coverage you need to protect your property and your business.
Remember, the key is to make your hotel as "insurable" as possible. Show insurers that you're a responsible, low-risk client, and you'll find more doors opening.
Click here to download our interactive 'Hotel Insurability Checklist'.
Track your progress as you implement these strategies to make your property more attractive to insurers.
What strategies have you found most effective in navigating the current hotel insurance market?
Not sure where to begin? Need immediate assistance? Schedule a callback from our hotel insurance specialists. We'll help you explore your options and find the right coverage. Click here to contact our team and start the conversation for a quoted solution.
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About the Author
Tyler Bartosh (Connect with me on LinkedIn)
A third-generation insurance agency owner and agent since 2007, Tyler Bartosh is the consummate “insurance geek,” using his passion for business, knowledge of insurance, and advocacy for clients to help serve as the expert buyer of insurance. He helps businesses implement risk management strategies that save both time and money, so those resources can be put towards other initiatives in your company.
Away from his career in insurance, he enjoys spending time with his family & friends, volunteering throughout the community, golf, fishing, snowboarding, hiking and virtually anything outdoors and traveling to see live music. Tyler has a wife Emily (who is also an underwriter in the insurance industry), their dog Lucy and a baby girl, Sophie Constance.
About Top O' Michigan Insurance Solutions:
At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.
We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at TOMIA247.com/WeCare.
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Disclaimer: This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship.
The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
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