Oakbridge’s Hospitality Group Gives Comfort in Tough Market
Jan 17, 2023
Jan 17, 2023
The hospitality industry is undergoing tremendous pressures – staffing shortages, supply chain issues, and last and certainly not least, a multi-year, global pandemic.
Mom-and-pop owners are increasingly being absorbed by private equity groups or larger operators. Regional and national operators face investor pressures, lower than average occupancy rates and major property insurance capacity issues. This brutal phase is exacerbated by uncertain weather patterns and increased litigation.
The result? Huge increases in operating costs and 8 to twelve percent decrease cash-on-cash reserves. Intertwined through all of this is a reluctance to, and in some cases, a decision by insurance carriers to stop covering less than premium quality properties. How then, do smaller, regional operators of essential, non-luxury properties insure their businesses?
“It’s a matter of experience and relationships,” said Oakbridge principal Josh Cavallin, who specializes in writing hospitality coverage. “We’ve been insuring hospitality operators for decades. We understand the unique pressures the industry faces. We have built a credible, dynamic line of business by carefully considering the needs of our clients and matching them with carriers who also understand the business and are willing to underwrite the industry. We’ve been working with small and large operators for years.”
Finding coverage in a post-pandemic market
Oakbridge fully comprehends the myriad risk factors operators face, from aging properties to guest safety to unexpected damages from weather and criminal activity. “We’ve been very careful to build and maintain our carrier relationships. Our team knows the specialists in each category and who will and won’t provide coverage,” Cavallin said. “We know these phases are cyclical. We’re not ‘here today, gone tomorrow’ like so many others these days. We’ll be here when things come roaring back. Our business is built on relationships and sticking with our clients through thick and thin is a major part of that.”
In fact, Oakbridge’s experience and industry knowledge is a key reason operators depend on us for coverage options. In addition, we offer an industry-leading risk management program that helps identify and mitigate casualties before they happen, saving premium costs down the road.
“We’re seeing a major shift in the industry, but we’ll still be here to help our clients navigate the marketplace,” he adds. “We’ve grown this business one relationship at a time. Trust and our superior level of service are still key differentiators, regardless of what the market is doing.” Rest assured, Oakbridge understands hospitality.