It has been more challenging in the past year to obtain insurance on a hotel than it was previously. The uncertainty surrounding Covid 19 has been a driving factor for this difficulty, and hotels have had to make some difficult decisions regarding staff and whether it makes sense to even remain open going forward.
However, as we emerge into a new, post-Covid World, there are ways for you to obtain insurance on your hotel. In this article, we will look at why insurance coverage has changed so much for hotels and examine how you can secure insurance for your hotel to protect your investment.
Why is it Now More Difficult for Hotels to Obtain Insurance Coverage?
Uncertainty is the predominant factor in insurers raising their rates or refusing to cover hotels at all during this time. Nobody likes to feel uncertain, and insurance companies are no different.
In the past year, we have seen hotels converted into a multitude of different facilities. Some hotels offered to house first responders as these individuals were traveling across the country in order to help in areas of high need. Other hotels were transitioned into makeshift hospitals to help with the overflow of patients that hospitals were unable to accommodate.
These changes in hotel function are a source of angst for many insurers, who may not be comfortable covering the higher level of risk that comes with a medical facility. Therefore, insurers had to make difficult decisions, and much of the time elected to raise rates significantly.
Search Washington State Hotels Currently For Sale
How to Find Insurance for Your Next Hotel
Luckily, there are ways to move past these insurance issues and work toward a better future for your hotel.
- Put Everything in Writing. Ensuring that all of your policies and procedures are officially documented and understood by the entire staff will make insurers more comfortable with providing coverage. As times change and hotels’ functions fluctuate, there needs to be transparency from all parties involved. Your policy and procedure manual needs to be reviewed down to the most minute details to make sure that everyone knows how to handle any situations that may occur at your facility.
- Utilize a Third-Party to Perform an Audit and Inspection. Performing your own due diligence in-house is vitally essential. Still, it’s also critical that you have another set of eyes evaluate your hotel to obtain an outsider’s perspective and address any potential issues that may make insurers balk.
- Avoid Employee Fatigue. While owners and managers of hotels are certainly struggling, other employees feel the pandemic’s effects more than anyone. They are the first line of communication with worried guests and other individuals. The high stress of your employees can lead to burnout and exhaustion if not adequately addressed. Ensure that you make your employee training as enjoyable as possible and show your employees that they are appreciated with bonuses and rewards, as able.
Encouraging Signs
As Covid 19 case numbers fall across the country, people are slowly but surely becoming willing to travel again. Make sure your insurance policy is in place and that you are prepared for a new surge in travel and vacation guests as we move forward to the future.
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also commercial real estate brokers in Bellingham, Washington. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.
Related Content
Five Tips To Use When Buying Commercial Real Estate
Six Reason To Hire A Commercial Real Estate Broker
More Hotel Posts
Search Washington State Hotels Currently For Sale
