TWFG Commercial Business School – Hotels & Motels
Hotels & Motels
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
Minimum Recommended Coverage:
Building
Business Personal Property
Business Income
Employee Dishonesty
Money and Securities
Guest Property Coverage
Accounts Receivable
Computers
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Valuable Papers and Records
Equipment Breakdown
General Liability
Employee Benefits
Liquor Liability
Umbrella
Commercial Auto
Workers Compensation
TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
Carrier Enhancements
AFI BOP Enhancement
AFI Custom Protector Hotel
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
Preferred SIC Code(s)
7011 Hotels and Motels
Not Acceptable
7021 Rooming and Boarding Houses
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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 GLAUG @
mglaug@twfg.com
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
QUIZ
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
1. Name three Hotel/Motel related life-safety exposures to check.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
1. Name three Hotel/Motel related life-safety exposures to check.
a.
b.
c.
d.
e.
Emergency Exits visible, unobstructed and clearly marked
All Fire Alarms and extinguishers labeled and maintained
Functioning locks on all exterior windows above 1st floor
Stairways free of clutter and exits unobstructed
Functional smoke detectors in all rooms
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TWFG Commercial Business School – Hotels & Motels
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?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
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?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
4.
Why is the damage susceptibility of BPP for hotels considered
high?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
5.
Why is Ordinance or Law coverage important for hotel risks?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
6.
Does the age of the hotel have any bearing on choosing
Ordinance or Law coverage?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
7.
How much debris removal coverage is available under the unenhanced commercial property policy?
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
7.
How much debris removal coverage is available under the unenhanced 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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
8.
What factors would affect whether or not the limits in the previous
question are adequate?
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TWFG Commercial Business School – Hotels & Motels
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.
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
9.
If Blanket coverage is appropriate, what are three important
details you need to remember?
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
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?
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TWFG Commercial Business School – Hotels & Motels
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
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TWFG Commercial Business School – Hotels & Motels
TWFG Commercial Business School
Hotels and Motels
Questions???
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