Limited Service Hotels
We offer an umbrella policy for limited service hotels, including qualified franchised or independently operated hotels that serve both budget-minded and business travelers alike. Effective June 28, 2019, on new business, our underlying carrier guidelines have changed for the Limited Service Hotels program. Please review the application section, Underlying Carrier Info with special attention as changes have been made. All underlying insurance placed with a non-admitted underlying commercial general liability is subject to underwriting review.
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- Limits from $5 million to $100 million to satisfy any franchise requirement
- Hospitality-specific coverage enhancements
- Automatic renewal process for most accounts
- No shared limits
- Admitted, A.M. Best A rated carriers
- Competitive pricing and low minimum premiums
- Responsive service and 24-hour direct-to-issue binding confirmation
- Franchised or independently operated hotels, including extended stay
- Not available in Georgia
- Interior or exterior corridor hotels
- Can follow most underlying carriers A.M. Best Rated A- VI or better. For Employer’s Liability, A.M. Best Rated B++ VI or better
Common limited service hotel amenities, including:
- Swimming pool
- Manager’s reception
- Shuttle vehicles
- Fitness facility with no public memberships
- Restaurant and bar, both first- and third-party operated
- Conference, meeting or banquet space
Common hotel brands include, but are not limited to:
- Best Western
- Courtyard Marriott
- Holiday Inn Express
- Staybridge Suites
- Comfort Inn
- Hampton Inn
- La Quinta Inn & Suites
- TownePlace Suites
- No Self-Insured Retention
- Per Location Aggregates (subject to underlying insurance)
- Worldwide Protection
- Broad Form Named Insured
- No Exclusion for Abuse and Molestation
- Hospitality-specific Pollution Enhancement
- Crisis Response
- Waiver of Subrogation
- No Exclusion for Assault and Battery
Follow Form Coverages:
- Bodily Injury & Property Damage
- Products/Completed Operations
- Employee Benefits Liability
- Non-employee Discrimination
- Employer’s Liability
- Personal & Advertising Injury
- Liquor Liability
- Punitive Damages (except those related to a certified act of terrorism)
- Care, Custody & Control (Garagekeepers Legal Liability)
- Contractual Liability
The coverage information outlined above is a guideline only. Please refer to the actual policy for full terms, conditions, exclusions, and limitations. In the event of a conflict between the above information and the actual policy, the policy will control.
Limited-service hotels are geared toward a modest price point, and appeal more to leisure travelers and business travelers than their counterpart full-service or luxury hotels. Over the years, hotels and motels that fall under the limited-service category have expanded their offerings to provide business centers, small gyms, laundry facilities, in-house restaurants and bars, and swimming pools.
As with any hotel property that provides various services to guests in the custody and care of management, liability risks can abound. While General Liability insurance steps in to protect against third-party liability and property damage claims, the amount of coverage under the policy may not be sufficient enough to cover today’s litigious landscape. Just consider all of the premises liability concerns (slips and falls, assault and battery, liquor liability, etc.) as well as product liability exposures that are present when operating a hotel with a large number of occupants that may be staying at the hotel at any given time.
It’s therefore critical that a hotel properly protect its assets with adequate liability limits with Umbrella insurance, which is designed to provide that extra layer of liability protection over an insured’s underlying policies (General Liability, Auto, Liquor Liability, etc.) in the event of a catastrophic loss. How much Umbrella coverage you secure for a client will depend on the value of the business’ assets and the risks and exposures present at the hotel. If a limited-service hotel is engaged in providing food service via a restaurant, serving alcohol, contains a swimming pool, or offers guests rides to and from a nearby airport, the establishment has taken on additional liability exposures and should consider purchasing higher Umbrella limits. Policy limits are available up to $100 million.
In addition, Umbrella insurance for limited-service hotels goes beyond what the General Liability policy provides. For example, with an Umbrella, worldwide protection is available as well as crisis response coverage. Crisis response coverage is particularly important in the event of a significant loss and the adverse publicity associated with the incident, which puts a business’ financial integrity and reputation on the line. Today’s 24-hour news cycle and information-sharing ability through social media and blogs could bring tremendous harm to a brand. With crisis response coverage under the Umbrella policy, a hotel can get ahead of the story and the negative publicity that comes with it and help mitigate damage to its reputation. The insured is able to hire a crisis service provider for immediate assistance and receive funding for related expenses. The service provider can assist in controlling the crisis and work with the insured throughout the process.