How do you know the agent or company you are considering knows your area?  Simply ask for some referrals.  The best advertising I have are the happy clients who I’ve already helped with their insurance needs.  And the ones who’ve actually had a claim are more loyal than those that haven’t because they know what our service is like during the most important time in a policy – when there’s a claim.

Lastly, look for an agent with a CIC or CPCU designation.  These are individuals who’ve made a serious commitment or time and money to gain a deeper knowledge of the coverage options available and the problems to look for in each of the particular policy types.  Along with the initial training and testing there are annual educational requirements to keep these certifications current.

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The Internet is a good place to begin your search. Online, you can generally get a wealth of information, possibly even online quotes, find the phone numbers for local agents and learn some of the pitfalls. One of the things you should remember when it comes to looking for hotel insurance is that information and education is a great weapon to have. Understand not only your current coverages, but what the traditional needs of the hospitality industry are and what options are available to you.  Armed with this information, you can be confident meeting with several agents and options.  That being said, it really is better to work with an agent and company that specializes in hotel insurance.

Companies change and in so doing have appetites for different risks.  Just because a particular company is competitive in the hotel industry one year does not mean that they will continue to do so.  Different rating factors and loss ratios will cause their pricing to change from year to year.  Find an agent you trust that understands your industry and has several companies available to quote.  And don’t be afraid to shop your hotel insurance to a new agent from time to time.  It’s a great chance to review your policy and coverages along with getting a better understanding of the industry as a whole.

1) No hired / non-owned auto coverage.  Because of the nature of the business, hotels frequently do not have a commercial auto policy in place, thus they feel no need for auto type coverages.  However, should you or one of your employees ever use your own vehicle to shop for supplies, pick up lunch, or any other business use you take your business with you.  Any accident you would be involved in is going to pull the business in and without hired / non-owned you have no coverage in place.

2) Not enough knowledge. You need to understand your hotel business and the specific insurance coverages you need.  This is where a trusted agent can help you ask and answer the right questions to ensure you have the proper coverages in place. Annual policy review with your agent is imperative to keep your reconstruction costs up to date and help with any new laws or coverages that are available.

3) Not enough coverage. Ok, does really need to be explained? What happens when you are carrying $500,000 in building coverage and the loss totals $750,000?  Most of us understand that we’ve just lost $250,000.  But what about a partial loss when we are carrying 100% coinsurance.  Do you know that 90% coinsurance is better and that 80% is even better than that?  Send us an email if you don’t understand why.

4) Not reading the fine print. No matter how tedious the task may seem, you really need to read your policy, at least the major points. It is for you own good and will probably tell you a lot you didn’t know about hotel insurance.  It also makes a great starting point for questions your agent can answer.

5) Not taking enough time. We’re all pushed for time but your hotel insurance decision is done hurriedly and without careful thought can easily be financially devastating at the time of loss.

Other needs to consider are whether or not you will host conventions in your hotel. Does your hotel have up to date fire escape plans? Do you have all of the necessary safety guidelines in order? These will all have a bearing on your insurance, and actually, certain safety precautions can save you a significant amount of premium.  If your hotel has a sprinkler system you’ll want to make sure that the flow tests are up to date.  This can literally reduce your building premium by 50%.

With the high building values and time involved in reconstruction you’ll also want to make sure that you have adequate coverage for income loss and ordinance and law coverage.  These coverages take care of the additional costs you’ll incur in getting your new building up to current codes and also providing your net profit and expenses during the reconstruction period.

Lastly, make sure you are dealing with a competent agency and insurance company that is familiar with hospitality risks and coverages.  It pays to shop your insurance coverages from time to time but make sure if you’re going to move your insurance that you have references from the new agent.  Just because the price is lower does not mean that you have the proper coverage in place.

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