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TWFG Commercial Business School – Hotels & Motels 1 Hotels & Motels.

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Presentation on theme: "TWFG Commercial Business School – Hotels & Motels 1 Hotels & Motels."— Presentation transcript:

1 TWFG Commercial Business School – Hotels & Motels 1 Hotels & Motels

2 TWFG Commercial Business School – Hotels & Motels 2 TWFG Commercial Business School Hotels and Motels Learning Objectives To understand the coverage exposures specific to this class of business To understand how advanced Property Insurance topics, such as Debris Removal, Blanket Coverage, Ordinance or Law coverage and Utility Services coverage would specifically apply To understand our carrier appetite To be able to fully complete ACORD apps for all lines of coverage

3 TWFG Commercial Business School – Hotels & Motels 3 TWFG Commercial Business School Hotels and Motels Glossary Business Traveler Hotel Life Safety Exposures Interior Access/Egress ( photos included ) Ordinance or Law Coverage Utility Services Direct Damage Statement of Values

4 TWFG Commercial Business School – Hotels & Motels 4 TWFG Commercial Business School Hotels and Motels

5 TWFG Commercial Business School – Hotels & Motels 5 TWFG Commercial Business School Hotels and Motels

6 TWFG Commercial Business School – Hotels & Motels 6 TWFG Commercial Business School Hotels and Motels Description of Operations: Hotels and Motels are lodging facilities designed to provide lodging, eating and other recreational services to guests. Many hotels also offer meeting facilities for seminars and conferences. Some have recreational facilities.

7 TWFG Commercial Business School – Hotels & Motels 7 TWFG Commercial Business School Hotels and Motels SIC Code: 7011 Hotels and Motels Suggested ISO General Liability Codes: 45190: Less than 4 stories with pool or beaches 45191: 4 or more stories with pool or beaches 45192: Less than 4 stories without pool or beaches 45193: 4 or more stories without pool or beaches Suggested Workers Compensation Codes: 9052/9058

8 TWFG Commercial Business School – Hotels & Motels 8 TWFG Commercial Business School Hotels and Motels Exposures in General Property: High combustibility of contents (beddings, furnishings, wallpaper, carpeting) Multiple ignition sources (coffee pots, hair dryers, irons) Extensive roof-top exposures Restaurants/Sports Bars/ Lounges Crime Inland Marine Equipment Breakdown

9 TWFG Commercial Business School – Hotels & Motels 9 TWFG Commercial Business School Hotels and Motels Exposures in General Liability: Large number of guests on premises present substantial slip and fall exposure Pools High Products liability if hotel has a restaurant or lounge Liquor Liability Automobile Liability Workers Compensation

10 TWFG Commercial Business School – Hotels & Motels 10 TWFG Commercial Business School Hotels and Motels Minimum Recommended Coverage: BuildingValuable Papers and Records Business Personal PropertyEquipment Breakdown Business IncomeGeneral Liability Employee DishonestyEmployee Benefits Money and SecuritiesLiquor Liability Guest Property CoverageUmbrella Accounts ReceivableCommercial Auto ComputersWorkers Compensation

11 TWFG Commercial Business School – Hotels & Motels 11 TWFG Commercial Business School Hotels and Motels

12 TWFG Commercial Business School – Hotels & Motels 12 TWFG Commercial Business School Hotels and Motels

13 TWFG Commercial Business School – Hotels & Motels 13 TWFG Commercial Business School Hotels and Motels Common ACORD Forms 125 – Commercial Insurance Applicant Information 126 – CGL 127 – Business Auto 130 – Workers Compensation 131 – Umbrella/Excess 140 – Property 146 – Equipment Floater

14 TWFG Commercial Business School – Hotels & Motels 14 TWFG Commercial Business School Hotels and Motels Coverage Discussion Ordinance or Law Debris Removal Utility Services Direct Damage Please review discussion documents on the Branch or GA portal that explain these important coverages and how they apply

15 TWFG Commercial Business School – Hotels & Motels 15 TWFG Commercial Business School Hotels and Motels Carrier Enhancements AFI BOP Enhancement AFI Custom Protector Hotel

16 TWFG Commercial Business School – Hotels & Motels 16 TWFG Commercial Business School Hotels and Motels Carrier Appetite Limited appetite to franchise type hotels catering to the business traveler Interior access to rooms Limited restaurant/lounge exposures. Better if separately managed and insured Roofs 15 years or newer Over 3 stories must sprinklered Tier 2 must masonry non-combustible construction or better

17 TWFG Commercial Business School – Hotels & Motels 17 TWFG Commercial Business School Hotels and Motels Preferred SIC Code(s) 7011Hotels and Motels Not Acceptable 7021Rooming and Boarding Houses

18 TWFG Commercial Business School – Hotels & Motels 18 TWFG Commercial Business School Hotels and Motels Submission Checklist A submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed Support document is available on the Branch & GA websites

19 TWFG Commercial Business School – Hotels & Motels 19 TWFG Commercial Business School Hotels and Motels Case Study This segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional For GA agents the Case Study is optional. The Case Study material will be available on the Branch and GA portals RETURN COMPLETED CASE STUDIES TO MARK

20 TWFG Commercial Business School – Hotels & Motels 20 TWFG Commercial Business School Hotels and Motels QUIZ

21 TWFG Commercial Business School – Hotels & Motels 21 TWFG Commercial Business School Hotels and Motels 1.Name three Hotel/Motel related life-safety exposures to check.

22 TWFG Commercial Business School – Hotels & Motels 22 TWFG Commercial Business School Hotels and Motels 1.Name three Hotel/Motel related life-safety exposures to check. a. Emergency Exits visible, unobstructed and clearly marked b. All Fire Alarms and extinguishers labeled and maintained c. Functioning locks on all exterior windows above 1 st floor d. Stairways free of clutter and exits unobstructed e. Functional smoke detectors in all rooms

23 TWFG Commercial Business School – Hotels & Motels 23 TWFG Commercial Business School Hotels and Motels 2.What is a major source of GL claims for Hotels, and how can this exposure be addressed?

24 TWFG Commercial Business School – Hotels & Motels 24 TWFG Commercial Business School Hotels and Motels 2.What is a major source of GL claims for Hotels, and how can this exposure be addressed? Slips and falls. By having a formal slip/fall loss control program in place.

25 TWFG Commercial Business School – Hotels & Motels 25 TWFG Commercial Business School Hotels and Motels 3.If a hotel risk includes an on-premise restaurant, what is the preferred method for addressing this exposure?

26 TWFG Commercial Business School – Hotels & Motels 26 TWFG Commercial Business School Hotels and Motels 3.If a hotel risk includes an on-premise restaurant, what is the preferred method for addressing this exposure? Separately managed and insured, with the hotel listed as an AI, with COI and WOS applied.

27 TWFG Commercial Business School – Hotels & Motels 27 TWFG Commercial Business School Hotels and Motels 4.Why is the damage susceptibility of BPP for hotels considered high?

28 TWFG Commercial Business School – Hotels & Motels 28 TWFG Commercial Business School Hotels and Motels 4.Why is the damage susceptibility of BPP for hotels considered high? Lots of combustible contents (bedding, carpet, drapery, and furniture) and same items highly subject to water damage from sprinklers and fire hoses.

29 TWFG Commercial Business School – Hotels & Motels 29 TWFG Commercial Business School Hotels and Motels 5.Why is Ordinance or Law coverage important for hotel risks?

30 TWFG Commercial Business School – Hotels & Motels 30 TWFG Commercial Business School Hotels and Motels 5.Why is Ordinance or Law coverage important for hotel risks? Building codes may have changed since the hotel was first built. In the event of a loss requiring significant build-back, the increased costs associated with requirements to make the rebuilt sections comply with current code could significant.

31 TWFG Commercial Business School – Hotels & Motels 31 TWFG Commercial Business School Hotels and Motels 6.Does the age of the hotel have any bearing on choosing Ordinance or Law coverage?

32 TWFG Commercial Business School – Hotels & Motels 32 TWFG Commercial Business School Hotels and Motels 6.Does the age of the hotel have any bearing on choosing Ordinance or Law coverage? Yes. This coverage is less important on newer structures.

33 TWFG Commercial Business School – Hotels & Motels 33 TWFG Commercial Business School Hotels and Motels 7.How much debris removal coverage is available under the un- enhanced commercial property policy?

34 TWFG Commercial Business School – Hotels & Motels 34 TWFG Commercial Business School Hotels and Motels 7.How much debris removal coverage is available under the un- enhanced commercial property policy? a. Up to 25% of the Building Loss Amount, not of the applicable coverage limit. b. An additional $10,000 if the building limit is exhausted

35 TWFG Commercial Business School – Hotels & Motels 35 TWFG Commercial Business School Hotels and Motels 8.What factors would affect whether or not the limits in the previous question are adequate?

36 TWFG Commercial Business School – Hotels & Motels 36 TWFG Commercial Business School Hotels and Motels 8.What factors would affect whether or not the limits in the previous question are adequate? Debris Removal payments are inclusive of the policy limit. In other words, if the entire building limit is exhausted in replacement or repair costs, then there is not 25% of that limit available. Only the additional $10,000 would be available.

37 TWFG Commercial Business School – Hotels & Motels 37 TWFG Commercial Business School Hotels and Motels 9.If Blanket coverage is appropriate, what are three important details you need to remember?

38 TWFG Commercial Business School – Hotels & Motels 38 TWFG Commercial Business School Hotels and Motels 9.If Blanket coverage is appropriate, what are three important details you need to remember? a. State Blanket coverage on the ACORD 140 b. Complete an ACORD 139, Statement of Values c. List the 100% replacement cost for limits declared on the 139

39 TWFG Commercial Business School – Hotels & Motels 39 TWFG Commercial Business School Hotels and Motels 10. What are the two most important and most often overlooked pieces of information to include on the ACORD 140?

40 TWFG Commercial Business School – Hotels & Motels 40 TWFG Commercial Business School Hotels and Motels 10. What are the two most important and most often overlooked pieces of information to include on the ACORD 140? a. Dates and details of the system upgrades b. Type and age of roof

41 TWFG Commercial Business School – Hotels & Motels 41 TWFG Commercial Business School Hotels and Motels Questions???


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