Hotel Insurance
Hotel Insurance
Fighting Mad Hotel Franchisees! Including The Exclusions
When your insurance carrier and your parent company are at odds, what do you do? That’s the issue facing Best Western Franchise owners to the news that the company is re-evaluating its relationships with franchisees based on their current insurance coverage. At issue is the standard assault, battery, and molestation exclusions that hotel insurance carriers have on their policies. Understandably, the company is requiring the coverage to minimize loss exposure.
However, things get sticky for franchisees looking to add the endorsement to the existing policy. Hotel insurers are saying no to requests for the re-attachment of the much-needed coverage. That’s leaving a lot of franchisees twisting in the wind.
Many insurance policies contain an assault and battery exclusion that excludes claims arising from assault, battery, fight, altercation, misconduct, or other act of violence. Policy holders are left looking for coverage elsewhere, which may or may not be adequate. Too often, hoteliers pay for coverage only to find that a claim against the endorsed policy isn’t covered. For instance, cases of lawsuits claiming the hotel acted with some inherent intent have been enough to exclude coverage on a number of policies depending on in which state the claim was filed. Also, coverage may be limited to defense costs only, or defense costs up to a low indemnity sub limit. If you’re shopping for an endorsement, understand fully the terms you’re agreeing to. Otherwise, you could be purchasing a policy that doesn’t fit your needs or those of your parent company.
VIP Hotel insurance has solutions to help hoteliers navigate through this current situation. We have markets for hoteliers to choose from, and we can help you understand your coverage options, what the endorsements cover, and what exposures you still face. We specialize in hotel insurance. We understand the complications of coverage, the limits, and we can match a product to your business needs. We can help you meet your obligations to your corporation and protect your business investment.
About the Author
VIP Hotel Insurance is pleased to partner with Kurt Kramer, a familiar face in the hospitality insurance marketplace. His knowledge and experience ensure that your assets (as provided to him) will be protected in the event of a claim or catastrophy. Kurt enables VIP to bring great, rewarding and an all encompassing insurance program to the hotel owner. Visit http://www.viphotelinsurance.com today for a free customized quote. Follow us on Twitter at http://twitter.com/viphotelins
Can my medical insurance deny a claim because they are based outside the state where I work?
I work for a hotel chain in one of their Georgia locations. The company has contracted our health insurance with Blue Cross Blue Shield (BCBS) of Alabama. The doctor ordered a series of blood tests, and after having them done in Atlanta, BCBS denied the claim because according to them, they only cover diagnostic tests carried out in Alabama. Is this legal? Does this mean I have to travel to Alabama every time I require a diagnostic procedure?
Your policy is going to have a local network. If it’s out of network, they can cover however they cover out of network charges.
If your employer bought a plan that only has coverage in Alabama, this is legal. But most likely, you need to change your coverage area, so you can get coverage where you are located. Call the number on the back of your card, and ask how you can get switched to a local area.
It’s not about where you work – it’s about where you live.