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

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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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Glossary

Business Traveler HotelLife Safety ExposuresInterior Access/Egress (photos included)Ordinance or Law CoverageUtility Services Direct DamageStatement of Values

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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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SIC Code: 7011 Hotels and Motels

Suggested ISO General Liability Codes:45190: Less than 4 stories with pool or beaches45191: 4 or more stories with pool or beaches45192: Less than 4 stories without pool or

beaches45193: 4 or more stories without pool or beaches

Suggested Workers Compensation Codes: 9052/9058

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Exposures in GeneralProperty:

High combustibility of contents (beddings, furnishings, wallpaper, carpeting)

Multiple ignition sources (coffee pots, hair dryers, irons)

Extensive roof-top exposures Restaurants/Sports Bars/ LoungesCrimeInland MarineEquipment Breakdown

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Exposures in GeneralLiability:

Large number of guests on premises present substantial slip and fall exposure

PoolsHigh Products liability if hotel has a restaurant

or loungeLiquor LiabilityAutomobile LiabilityWorkers Compensation

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Minimum Recommended Coverage:

Building Valuable Papers and RecordsBusiness Personal Property Equipment BreakdownBusiness Income General LiabilityEmployee Dishonesty Employee BenefitsMoney and Securities Liquor LiabilityGuest Property Coverage UmbrellaAccounts Receivable Commercial AutoComputers Workers Compensation

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Common ACORD Forms125 – Commercial Insurance Applicant Information126 – CGL127 – Business Auto130 – Workers Compensation131 – Umbrella/Excess140 – Property146 – Equipment Floater

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Coverage Discussion

Ordinance or LawDebris RemovalUtility 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 and Motels

Carrier Enhancements

AFI BOP EnhancementAFI Custom Protector Hotel

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Carrier Appetite

Limited appetite to franchise type hotels catering to the business travelerInterior access to roomsLimited restaurant/lounge exposures. Better if separately managed and insuredRoofs 15 years or newerOver 3 stories must sprinkleredTier 2 must masonry non-combustible construction or better

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Preferred SIC Code(s)

7011 Hotels and Motels

Not Acceptable

7021 Rooming and Boarding Houses

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Submission ChecklistA 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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Case StudyThis 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 @

[email protected]

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QUIZ

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1. Name three Hotel/Motel related life-safety exposures to check.

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1. Name three Hotel/Motel related life-safety exposures to check.

a. Emergency Exits visible, unobstructed and clearly markedb. All Fire Alarms and extinguishers labeled and maintainedc. Functioning locks on all exterior windows above 1st floord. Stairways free of clutter and exits unobstructede. Functional smoke detectors in all rooms

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2. What is a major source of GL claims for Hotels, and how can this exposure be addressed?

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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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3. If a hotel risk includes an on-premise restaurant, what is the preferred method for addressing this exposure?

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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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4. Why is the damage susceptibility of BPP for hotels considered high?

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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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5. Why is Ordinance or Law coverage important for hotel risks?

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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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6. Does the age of the hotel have any bearing on choosing Ordinance or Law coverage?

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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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7. How much debris removal coverage is available under the un-enhanced commercial property policy?

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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

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8. What factors would affect whether or not the limits in the previous question are adequate?

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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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9. If Blanket coverage is appropriate, what are three important details you need to remember?

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9. If Blanket coverage is appropriate, what are three important details you need to remember?

a. State Blanket coverage on the ACORD 140b. Complete an ACORD 139, Statement of Valuesc. List the 100% replacement cost for limits declared on the 139

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10. What are the two most important and most often overlooked pieces of information to include on the ACORD 140?

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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 upgradesb. Type and age of roof

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Questions???

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

Documents

motels exposures

business auto

class of business

motels submission checklist

motels case study

franchise type hotels

motels common acord

better slide