With new challenges emerging nearly every day, managing risk and insurance policies for hotels has become more challenging than ever. At the same time, hoteliers have more ways to mitigate the risks and reduce the cost of policies than ever before.
"Hoteliers and management companies often do not realize just how much their experience affects their rates when it comes time to renew their policies," said Sam Logan, VP of risk management for Island Hospitality. "Insurance company underwriters will examine the frequency and severity of claims when they are considering whether to provide coverage and what the rates will be to renew." The underwriters also will consider market conditions, the relationship a company has with its
carrier’s claim account manager and especially the adjusters handling the claims, he added. "The adjusters handling your claims often have a caseload of 125 claims or more. If an adjuster is looking at two claims at a given time and one is with a company that complains and harasses them and one is with a company where the contact is pleasant and understanding, you can be sure the claims will be worked differently."
When businesses implement policies and procedures that reduce risk, they can reduce policy premiums as well, Logan said. "There are many strategies that have proven effective in risk reduction, several of which involve little in the way of cost to implement and are currently hot-button issues with insurance company underwriters."
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