Is Your Hotel or Restaurant Insurance Adequate? Twelve Tips to Get the Right Coverage & Reduce Risk
By Richard Dahm Senior Risk Consultant, National Hospitality Division, Wells Fargo Insurance Services | February 15, 2010
In the last several years, the dramatic rise of insurance costs has placed an excessive burden on hotel and restaurant owners. Fortunately, the forecast for the 2007 insurance market remains optimistic with more insurance companies willing to compete and many offering broader coverage terms. As new markets become available, industry analysts advise caution. They recommend hotel and restaurant owners re-examine their existing management programs and develop initiatives to reduce the overall cost of risk. The following outlines a series of twelve tips to help you re-examine your insurance program, its depth of coverage, and related risks.
Twelve Initiatives for Hotel & Restaurant Management:
1 - Find the Right Insurance Specialist
Today, most hospitality executives realize that it is essential to find an insurance broker that specializes in their industry, one who knows the market and can tailor a reliable insurance program to their needs. A talented broker specialist can identify the right insurance coverage to solve immediate risk issues and anticipate future complications, thus allowing owners to concentrate on what they do best -- managing and developing their business. In fact, several of the larger insurance brokerages offer an entire hospitality division with a full staff of risk management professionals and specialty services including loss trending analysis, safety engineering, worker's compensation claims management, and experience modification analysis.
2 - Insurance Company & Underwriter Expectations
Insurance companies generally want the same type of information about your business regardless of the type of establishment you own. Financial information is necessary, especially sales receipts showing the percentage of alcohol to food sales. In addition, it is helpful that an owner or corporation have a resume highlighting their prior successes in the industry. - -