Insurance Coverage to Protect Hotels During Celebrity Events

By John Welty Practice Leader, SUITELIFE, Venture Insurance Programs | March 05, 2017

“Who are you wearing?” will again be asked up and down the red carpet this year during Hollywood’s annual awards season. Big names in the fashion and jewelry world like Gucci, Carolina Herrera, Christian Louboutin, and Cartier are likely to be the answers. This may leave one to wonder - how are these high-value items protected when the celebrities are off the red carpet and back in their hotel rooms? And then, how do non-celebrity hotel guests ensure their higher value items are protected during their vacations and hotel stays?

It’s Awards Season, is Your Hotel Covered for Big-Ticket Guest Items?

It’s Hollywood awards season, and celebrities are parading down red carpets donning designer dresses, suits and fine jewelry worth thousands to millions of dollars. To attend these sought-after events, many are staying in hotels – with suitcases packed to the gills full of high-value items. Admiring all of this luxury from our humble television screens, those of us in the industry may think of what protections hotels have in place to protect these big-ticket items and whether these protections are being properly utilized.

The subject begs several questions. Is the hotel safe deposit box regularly and properly used? To what extent does a hotel use a commercial policy to cover guest property, such as cash and other high-value property? Do hotels need to consider special coverage floaters for high wealth guests staying with them, or do the high wealth guests need to be informed about obtaining their own special coverage?

The subject brings to mind Kim Kardashian’s 2016 Paris hotel theft and what kind of coverage and protections a high-profile celebrity likely traveling with items valued in the hundreds of thousands of dollars (if not more) should have in place for a hotel stay.

In this article, we explore the options hotels have when it comes to insurance for high net worth guests with luxury items, as well as what coverage they should consider to protect their bottom lines.

Coming up in February 2018...

Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.