Dec 19, 2024
In the final ESLA Icons & Experts of the year we’re tackling an issue affecting every extended stay hotelier: Insurance! I’m joined by ESLA Chair and Founder, Doug Artusio, also CEO of Dellisart Hospitality.
We’re joined by Peggy Roberts & Laura Betten of AON – Insurance experts shedding light on market trends and risk management.
Key Topics Covered:
- The rising cost of insurance: What’s driving the increase?
- Post-COVID underwriting changes affecting extended stay properties.
- How to build trust and partnerships with insurance providers.
- The importance of tailored coverage and loss prevention strategies.
- Navigating state-specific regulations and multi-state challenges.
- Pro tips for mitigating risks like human trafficking and property liability.
Key takeaways include:
- The Sophistication of Hotel Ownership: Hotel owners face increased complexities in managing franchise contracts, banking requirements, and insurance policies. This necessitates a strategic approach to compliance and coverage.
- Proactive Insurance Strategies: Owners should adopt a forward-thinking approach to insurance by engaging with brokers early, leveraging industry data, and analyzing risks specific to property types and locations.
- Three-Pronged Support: Effective hotel management relies on a triad of support from CPAs, legal advisors, and insurance brokers. Each plays a vital role in mitigating risks and ensuring compliance.
- Data-Driven Risk Assessment: Insurance brokers like Aon use industry data to anticipate risks and tailor solutions. Predictable issues (e.g., fire sprinkler misuse or cooking accidents) and unforeseen events (e.g., vehicle crashes into buildings) require balanced, data-informed coverage.
- Flexibility and Alternatives: Hotel owners dissatisfied with current insurance arrangements can seek reviews and alternative plans, even mid-term. Building trust with brokers involves detailed program evaluations before commitments.
- Group Purchasing Power: Leveraging economies of scale through pooled arrangements or associations can significantly reduce costs and improve negotiating power with insurers. Options like captive insurance allow owners to retain premiums and build a collective rainy-day fund.
- Creative and Custom Solutions: Owners should prioritize partnerships with brokers who listen, innovate, and offer tailored solutions rather than just annual policy renewals.
- Regular Reviews and Reassessments: The importance of reevaluating all costs, including insurance, was emphasized, with advice to actively explore market options for potential savings and enhanced coverage.
🎙️ Don’t miss this enlightening conversation!
Thanks to AON for supporting this video.
Thanks to Dellisart for sponsoring this video.
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