Hospitality managers and owners of clubs, hotels, restaurants and convention centers face many obstacles as they work to bolster their businesses post-pandemic. One of the most significant and costly challenges they’ll face is a tightening hospitality insurance market.
Premiums are on the rise as underwriters take a tough look at policy requests and claims submissions. They, too, are working to cover the losses of the past two years and are much less apt to negotiate premiums or coverage exceptions. Add to the mix a pent-up population anxious to travel, and the time is now to take a proactive stance with insurance coverage.
It is crucial that savvy managers review not only their general P&C policies, but also their cybersecurity, business interruption and liquor liability coverage. As you review your coverage, remember the challenges underwriters face in terms of profitability, bandwidth and demand.
A smart review process should include the following strategies:
Identify Risk – Risk mitigation is one of the most effective ways to control premium costs. Developing and implementing an operational plan that regularly identifies, lessens or removes risk is essential for guest and employee safety as well as cost control. Be sure to document your program to support your negotiations.
Proactive Stance – Work to ensure your policy renewal submission is submitted well before the policy lapses. Gaps in coverage may indicate a lack of seriousness on your part, diminishing your negotiation position. More Importantly, gaps open the door to potentially devastating claims and lawsuits.
Thoroughness – Insurance underwriters are as pressed for time as you are. A complete application or renewal package eases their workload and saves them the hassle of requesting missing information. Providing a complete claims history and documenting your actions to avoid future casualties is also an essential element to effective cost control.
One of the most important steps a business owner or hospitality manager can take is working with a trusted insurance advisor to navigate policy renewal and risk reduction.
At Oakbridge, we understand that welcoming guests extends beyond filling orders or providing amenities. The hospitality industry is complex and multi-faceted, not to mention subject to the whims of the market. We’ve developed a comprehensive risk management program and specialized lines of coverage especially tailored to your very specific needs.
For nearly a century, we’ve helped protect our neighbors in towns and cities across the Southeast. We’re Oakbridge, a Top 100 Independent Insurance Agency, deeply rooted in your success.