Business Interruption: Preparing for the Unexpected
By Janet Wright Director of Risk Management, Ryan Specialty Group | December 12, 2021
After a year and a half of lockdowns and travel bans, this past Labor Day was meant to be an economic boon for many cities across the U.S. For areas like Lake Tahoe the weekend was ruined by weather-related disasters.
On August 30, 2021, just one week before the Labor Day holiday, the Caldor fire marched its way across the California landscape toward Lake Tahoe. Poor air quality from the fire had schools postponing the beginning of the year, vendors cancelling outdoor events and hotels turning guests away.
Across the country, hotels in Louisiana faced a similar problem. Hotels throughout the Garden District of New Orleans thought they were getting the holiday-driven tourism resurgence they needed after being hit hard by the deep freeze earlier in the year. Instead, hoteliers were forced to close their doors and turn away guests yet again to prepare for the potentially devastating effects of Hurricane Ida.
Weather-related disasters such as Hurricane Ida and the Caldor Fire are devastating, not only in terms of health and safety, but also in terms of business loss. And it's not just wildfires and weather-related catastrophes that can bring businesses to a halt. Any unforeseen event, such as a fire, vandalism, theft, or municipal evacuation order could lead a business to have to cease operations, which can be costly and damaging to the business's reputation.
Hoteliers who are aware of and prepared for the risks related to these events have an enhanced chance of minimizing financial and physical damage losses. Hotel management can protect their businesses by understanding their risk exposures and ensuring they have competitive insurance coverage in place.
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