Commercial General Liability Insurance
Commercial General Liability Insurance
How does a recession effect the insurance industry?
Specifically Commercial Property and Casualty- General Liability, Workers’ Comp, D&O/E&O. Will business be forced to cut back or eliminate coverage all together?
Probably will not impact the P&C business much. The business cycle typically has very little correlation to the insurance cycle. The fortunes of insurance companies tend to be influenced by how much capacity (capital) is in the insurance business. When there’s too much (like right now) competition gets intense, prices get driven down and results begin to falter. When enough insurance compamies get in enough trouble, some cut back, some go out of business and the insurance climate (at least from the insurance company point of view) improves. That happened on the property side in 2006. The year after all the 2005 hurricanes which cost the industry billions. 2006 was a great year as prices increased significanty but there were no big hurricanes. It was so good prices came down in 2007 and again no big hurricanes. If there are no big hurricanes in 2008, expect the industry to get real competitive.
San Diego commercial general liability insurance
Why General Liability is Too General for the Hotel Industry
If you’re relying on a generic commercial General Liability Insurance Policy to cover your hotel business, oh, the gaps you’ve created. Oh sure, the general liability policy is going to cover your building and grounds, but it doesn’t begin to address the specific risks that hotels face. And while many general liability policies give you additional coverages that are useful – such as employer’s liability coverage – it falls far short of giving your hotel business the comprehensive protection that a hotel insurance policy would give you.
 Most general liability policies give you the basics – business interruption coverage, injury coverage, employee theft, damage – but what isn’t addressed in any generic policy are the more costly issues. Business interruption coverage on any general liability policy may not include interruption due to food-borne contamination, natural disaster, murder or suicide investigations, contagious diseases, or even a drop in tourism. Hotel insurance is designed to address the more specific nature of your business.
Also, hotel insurance offers premiums based on the number of rooms. And if you can’t fill that hotel? There’s coverage for that.
Since hotels are exposed to more legal entanglements due to guest privacy issues, guest services, or guest treatment, hotel insurance is essential to provide that added layer of protection from claims against the hotel brought by guests.
As we’ve mentioned on this blog before, any amenity associated with your hotel business – such as spa services or fitness clubs – increase a hotel’s risk of guest injury or guest claim. A typical general liability policy will not offer coverage for these services provided by third parties. However, a comprehensive hotel insurance package can include optional coverage that give hotel businesses an added measure of protection from claims involving any referral services.
Don’t expect a basic commercial liability policy to cover your specific hotel insurance needs. Examine your current coverage with a hotel insurance specialist to see how much you’re leaving to chance. Specialized hotel insurance products offer a level of protection unmatched by generic policy coverage.
