A hotel may be a well managed operation that is consistently profitable and viewed favorably by its guests. Management and prosperity aside, however, things can change in a moment’s notice by a property loss that damages the building and causes a full or partial suspension of business.
Although all business concerns face the risk of loss to their property, the loss can be prevented or minimized by sound risk management, and/or indemnified by the purchase of a comprehensive insurance program. On at least an annual basis, hotel management should review its insurance program with its agent or broker. Any substantial changes in the hotel facility, such as upgrades or additions to the building, should be communicated to the agent or broker.
Following is a “guide to discussion”when hotel management meets with the agent to review the insurance policy: